According to a report by Redseer, the fashion market in India is growing at a CAGR of 11%, with online fashion growing the fastest at a CAGR of almost 32%. This indicates that the apparel and lifestyle industries in India are multiplying, and more and more D2C brands are entering the market. Customers today are also resorting to online shopping for apparel. 

With an ever-expanding internet population and active penetration of internet users across the country, it is essential to stay organized and systematic in your entire eCommerce approach if you want to stay ahead of your competition.

If you sell clothes, accessories, or similar products, you need to be extra cautious about your fulfillment operations so that you can fulfill orders on time. Today, with marketplaces like Myntra, Flipkart, Amazon, etc., investing in apparel, it is essential to deliver products seamlessly, so your service stands out. 

To do so, you need to tie up with 3PL fulfillment providers to ensure your reach is widespread and you can enhance your customer’s delivery experience. Here are a few things you must keep in mind when tying up with a 3PL fulfillment provider for your apparel business. 

Centralized Inventory Management

Centralized inventory management is essential for brands that sell apparel online. Since the fashion industry is ever-growing, it is evident that you will not be selling only from one platform. If you sell on multiple sales channels like your own website, marketplaces, social media, etc., you must have a central inventory management system for all your incoming orders. It helps to process orders faster and tracks inventory in a much more efficient manner. Ensure that your 3PL fulfillment provider has a centralized inventory management system for your business, and you can track inventory from any place. Since you are the one who has to send an inventory to the warehouse, it is necessary to have all the information and data around it. 

Pan-India Coverage

The next essential aspect of successfully running an apparel eCommerce business is delivery across the country. Most companies that fulfill orders themselves are not able to deliver within a few days to their customers. People these days don’t settle for standard shipping of 7-10 days. They want a delivery of the products within 3 to 4 days of ordering it. Most times, even that seems a long time. Therefore, it is vital to choose a 3PL provider that has fulfillment centers located across the country. This helps you store your products in different zones, and you can deliver faster to every pin code in the country.

Warehouse Management

The next thing you should look out for in your 3PL fulfillment provider is warehouse management. If the warehouses are not managed efficiently and the workflows are not defined, there is a high risk as the orders would not be processed systematically. Since apparel orders usually come in bulk or require a thorough check in terms of SKUs etc. A warehouse management system and a systematic process must be in place to ensure seamless order processing. 

Shipping & Distribution

It is essential that the 3PL fulfillment provider you tie-up with has a vast network of pin codes and multiple courier partners that can help ship your orders. If your 3PL fulfillment provider depends only on one courier partner, there is a chance that you might skip out on several orders because you cannot service them. As India’s internet penetration is increasing, orders are flowing in from all parts of the country. If you cannot deliver seamlessly, it is difficult for you to make a mark in the industry.

Packaging Solutions

3PL fulfillment providers must have varied packaging solutions for your business so you can associate specific SKUs with designated packaging. This will help you streamline the process, and you will be able to save on additional costs due to efficient packaging. Shiprocket Fulfillment uses packaging material provided by Shiprocket Packaging. This material is efficient and designed for durability. You can buy packaging material by Shiprocket packaging and deliver products in a tamper-proof package.

Accurate Weight Measurement

Several weight issues can arise when shipping apparel. Since these products are light and usually packed and flyers, etc., many times, the weight of these packages is mismeasured. This often leads to an undue rise in the discrepancy issues, and you are directed to pay a considerable amount to courier companies. Your 3PL fulfillment provider must measure your final package’s weight before shipping it to avoid such complications. In such cases, if there is any claim by the courier company, you do have a thorough record of fighting for your request.

Marketplace and Website Synchronization

Since you sell on several platforms, your 3PL fulfillment provider must offer you integration with different sales channels and marketplaces like Shopify, Magento, Amazon, etc. This will help you integrate all incoming orders into one place and improve order accuracy.

Shiprocket Fulfillment – Your Solution to Seamless Apparel Fulfillment

Shiprocket Fulfillment is an end to end eCommerce warehousing and fulfillment solution for D2C brands in India. 

We have fulfillment centers located across the country Inn different locations, and you can store your inventory with us. But Shiprocket Fulfillment, you can provide your customers with faster delivery options like one day and two-day shipping and process orders at a reduced shipping cost. 

We have an automated weight management system in place that helps you lower weight discrepancies that come in by courier companies. You can easily outsource fulfillment for your business while we process and ship orders to your customer’s doorstep. 

Final Thoughts

The apparel and fashion industry in India is booming. Online fashion is the next big thing as people are now turning to digital alternatives for shopping for clothes. Now is the right time to turn to a 3PL fulfillment provider to make apparel fulfillment a much more simplified task for your business. Reach out to Shiprocket Fulfillment today and let us take care of order fulfillment for your business. 

One of the significant challenges any seller faces is growing inventory. After a certain point, it is evident that you will need more space to store your products, or you will have to find a location somewhere else. What can you do in such cases?

We are all aware of the FBA model offered by Amazon. The Fulfillment by Amazon model is one of the most popular eCommerce fulfillment models provided by the marketplace as it reduces the order processing time and delivery speed. Over 66% of Amazon sellers opted for the FBA-only model for their e-commerce orders. 

But one question remains. What about the sellers who do not use Amazon for their sales, or is it the ideal model for all sellers using Amazon?

As an order fulfillment offering, Amazon FBA provides all the requirements that any seller looks for. But, the cost is slightly higher, and there are other shortcomings in the model. Let’s find out the benefits and disadvantages of this model. 

What is Amazon FBA

Amazon FBA refers to fulfillment by Amazon. It is one of the most advanced fulfillment networks offered by Amazon. 

With Fulfillment by Amazon (FBA), you store your inventory in Amazon’s fulfillment centers, and as you get incoming orders, Amazon packs and ships your orders to your customer’s delivery location. 

How does Amazon FBA Work?

Once you opt for Amazon FBA, you have to send your inventory to Amazon fulfillment centers. Once you receive an incoming order, Amazon takes care of the entire eCommerce fulfillment process. This involves the storage and warehousing of the product, picking, packaging, shipping, and returns management. Amazon assumes the whole responsibility of your inventory once you send it to the fulfillment center.

For using Amazon FBA services, you need to incur an FBA fee. This phase includes a referral fee (starts from 2% and varies by category), a closing fee that goes by the product price range, a shipping fee that begins at Rs.28 per item, and an FBA specific fee for the services offered. 

Let’s have a look at a few of the pros and cons of Amazon FBA.

Should You Use Amazon FBA?

Amazon FBA is an incredible opportunity for sellers willing to sell on Amazon only. If you want to sell your products on multiple marketplaces, you will need to arrange your own fulfillment solution.

Competition is fierce on the platform, which is why it might not be the best option for small and new businesses. However, when sellers use Amazon FBA, they receive the prime badge. This helps the seller build credibility and expand its reach to customers that prefer prime sellers over others. 

If you’re on the fence about using Amazon FBA, this article covers all the necessary information you need. Using Amazon FBA has its fair share of advantages and disadvantages. Consider your pros and cons and make a decision fit for your business.

Amazon FBA Or Self Fulfillment: Which Is Better?

Amazon FBA is a fantastic opportunity for online sellers to tap into the true potential of the eCommerce industry. However, like every coin has two sides, Amazon FBA has its downside. 

Which is why many sellers opt for self-fulfillment. For your online business, it is essential you choose and decide what fulfillment method works best and is the most profitable. Here are some key differences between Amazon FBA and self-fulfillment-

• When you are self-fulfilling orders, you can sell and ship orders on Amazon as well as other marketplaces. However, under Amazon FBA, you can only fulfill orders from Amazon and not any other marketplaces.
• Under Amazon FBA, once you receive an order, the picking, packaging, shipping, and return management is taken care of by Amazon. When you’re self-fulfilling orders, you are responsible for packing and processing every order.
• With Amazon FBA, the warehousing of products and inventory management is Amazon’s responsibility. While, when self-fulfilling orders, the seller is responsible for organizing storage space and accounting for inventory.

Benefits of Amazon FBA

Convenient

Amazon FBA is very convenient for any Amazon seller. It makes the process super easy as you do not need to worry about the entire order fulfillment process after you get an order. Amazon fulfillment centers are equipped with the best technology to fulfill orders and higher skill resources to ensure hundred percent accuracy. Amazon FBA also helps you reduce processing and shipping time. 

Amazon Prime

Sellers who opt for Amazon FBA access the Amazon prime tag that provides greater credibility to any seller. A large chunk of the Amazon user base uses Amazon prime. Therefore, this tag brings a lot of advantages to the seller’s marketplace store and product listings. 

Customer Service and Return

Amazon has an exemplar customer service team that can help resolve any customer query within record time. Opting for Amazon FBA gives the advantage of utilizing this customer service and return order management. Amazon handles customer queries promptly and deals with complaints while taking returns also. 

Unlimited Storage

If you look at it theoretically, Amazon Fulfillment gives you a chance to store unlimited products in their fulfillment centers. As orders are processed, you can keep sending more inventory to their centers without any capital investment for warehouse and inventory management. 

Disadvantages of Amazon FBA

No Multi-Channel Fulfillment

Amazon FBA does not offer multichannel fulfillment in India. If you are selling on multiple channels like your own website, the marketplace, social platforms, etc., you will have to arrange for your shipping and fulfillment for other channels. This comes as a significant blow for FBA users as they will have to invest twice to fulfill incoming orders. Amazon FBA is only suitable for sellers who use Amazon as their primary platform but not for other DTC sellers who utilize several different platforms for selling their products. 

Slightly Expensive

The storage and processing fee for Amazon fulfillment is slightly on the higher side as they charge you for several aspects and consider the shipping, storage, referral, and closing fee. This adds up to a considerable amount, and you need to have a particular number of orders to maintain this arrangement. 

Limited Pincode Coverage

Amazon shipping network is exceptionally experienced and resourceful; however, the pin code reach is not pan-India. They provide only a limited pin code reach where the process orders with a hundred percent accuracy. If the pin code reach is not included in the FBA offerings, you have to arrange for your delivery.

Lack of Inventory Tracking

Once you send your inventory to Amazon fulfillment centers, you need to rely on them for complete support, and there could be a lack of inventory tracking that could often lead to the accumulation of dead stock. This is harmful to your business as you need to pay extra for maintaining the stock.

No Company Branding

Amazon FBA ships its orders under the Amazon packaging and branding. This can also lead to a loss of your brand name. For someone looking to grow their indigenous label and develop a brand name among your target audience, you must utilize your product packaging and shipping to impact your customer. With Amazon FBA, it can get challenging to achieve this.

Extensive Preparation

Before you ship your products to the Amazon fulfillment centers, you need to carry out a certain amount of preparation for your products. This can get time-consuming and expensive for several sellers. 

Amazon FBA Alternatives – Shiprocket Fulfillment

So what can you do if you are not selling on Amazon or if you want to fulfill multi-channel orders? You always have the option of outsourcing your inventory to 3PL fulfillment providers like Shiprocket Fulfillment. 

Providers like full Shiprocket fulfillment give you all the facilities that an Amazon fulfillment center provides. You can fulfill orders with our advantageous services and experience a broader reach across India. 

Shiprocket fulfillment offers you fulfillment centers across different locations in India so you can store products closer to your customers and fulfill orders 3X faster. 

Not just this, with state-of-the-art fulfillment capabilities, our fulfillment centers are equipped with the latest technologies to help you reduce weight discrepancies and also reduce shipping costs by a large margin.

Head to fulfillment.shiprocket.in to connect with a fulfillment expert today! 

Final Thoughts

Amazon FBA is a pioneer when we talk about e-commerce fulfillment in India. However, it is not the only solution to help you achieve this goal of seamless and hassle-free fulfillment. Tie-up with 3PL fulfillment providers with Shiprocket Fulfillment so you can get Amazon FBA-like services at reasonable rates and with more features.

The eCommerce sector in India is growing at an exponential rate. According to a report by IBEF, India’s eCommerce sector will reach US$99 billion by 2024 from US$30 billion in 2019, expanding at a 27% CAGR, with grocery and fashion/apparel likely to be the critical drivers of incremental growth.

With the global pandemic and nationwide lockdown, the demand for eCommerce has grown by many folds. This has also led to the establishment of several warehouses and fulfillment centers that eCommerce companies are utilizing to fulfill eCommerce orders quicker. 

With the need for fulfillment centers in warehouses increasing, several advancements are happening inside them too. Let’s look at some of the trends that will shape the order fulfillment space in 2022.

eCommerce Order Fulfillment in India

According to a report, the warehousing and logistics sectors will grow by 35% in 2022. This indicates rapid growth in the industry, with various eCommerce players investing their money in elaborate infrastructure to fulfill eCommerce orders.

Along with that, sellers are also looking for storage options in large warehouses located in tier 2 and tier 3 markets to simplify the supply chain and deliver to her larger ground area. 

The warehousing market in India is expected to be worth INR 2821 Billion by 2024.

eCommerce companies, fast-moving consumer durables, fast-moving consumer goods, manufacturing industries, and 3PL fulfillment providers are the primary occupants of India’s warehousing spaces. This suggests that the trend for eCommerce fulfillment is only seeing upward growth in the coming years.

Let us look at some of the future eCommerce fulfillment trends that you can look out for in 2022. 

Order Fulfillment Trends to Watch Out For 

3PL Fulfillment Providers

The demand for fulfillment centers increases, and not every SMB and social seller can afford to invest in colossal capital infrastructure for warehouses. This is where 3PL fulfillment providers come into the picture. 3PL full payment providers manage all fulfillment operations starting from inventory management up to shipping and delivery. Since 3PL fulfillment providers are equipped with the latest technology required to fulfill orders quickly, eCommerce sellers reach out to them more than ever to outsource inventory and order management. 3PL fulfillment providers also have a vast distribution network across the country to ensure that orders are delivered faster. 

Shiprocket Fulfillment is one such 3PL fulfillment provider that helps you deliver orders 3X faster to customers and gives you an option to offer one day and today delivery. You can reduce your shipping costs and lower rate discrepancies by leveraging the technology we provide at our fulfillment centers located at prime locations across India. 

Omnichannel Fulfillment 

The next big train to watch out for omnichannel fulfillment. The focus is shifting only from digital eCommerce to an all-round eCommerce offering that includes providing a consistent experience to buyers across different channels like brick and mortar stores, eCommerce websites, kiosks, etc. The concept of a centralized fulfillment channel is coming into the picture, and sellers are not opting for a centralized inventory order management system to process orders faster. This advancement enables you to process orders from all sales channels similarly, providing a consistent shopping experience to your buyer. 

As the faces of a brand are increasing and buyers are reaching out from all directions, sellers are looking for options that make the work easier and simplify their business’s fulfillment supply chain. 

Greater Use of Technology

The inclusion of technology in fulfillment centers is an up-and-coming trend in the warehousing and logistics industry. Technologies like artificial intelligence (AI) and machine learning (ML) are being implemented to simplify the fulfillment process tasks. By 2019, 37% of organizations had already implemented AI, and the numbers are only expected to grow. AI is primarily used to reduce manual and repetitive tasks in the supply chain, which reduces errors that can lead to a setback. 

Automation is the next big thing and can also lead to a more expedited process. Fulfillment centers use automation to simplify inventory management and collect data and real-time to synchronize and process incoming orders efficiently. This is an upcoming trend in the industry and is expected to catch more pace in 2022 as we see a rise in fulfillment centers across the country.

Internet of Things

Data is the goldmine of eCommerce, logistics, and order fulfillment. Rich insights and data are being used to develop and implement IoT (Internet of Things) technologies to monitor their inventory. Technology, like big data, is also being used to centralize the entire process and automate operations. 

Sustainability

With many ecological changes happening daily, another notable trend that is catching up in supply chain management and fulfillment operations is sustainability. Brands are now looking to become more cost-effective and environmentally friendly to minimize the environment’s effect and adopt more eco-friendly strategies to run their business. As consumer trends are also changing, and the newer generation is looking for sustainable products, brands are also changing their approach to match the demand and move to a more sustainable supply chain. 

Conclusion

Order fulfillment is growing into a much bigger industry. Trends are anticipated to become more significant in the future. We hope that these trends give you an insight into what you can expect in the coming year and how you can optimize your fulfillment process to match the industry trends.

eCommerce fulfillment requires the utmost precision and attention to detail. Hence, you must choose the right 3PL fulfillment partner for your business. But how will you judge the efficiency of your fulfillment partner? It is necessary to understand the entire fulfillment process in-depth and how it is carried out at the warehouse to ensure that your active orders are processed thoroughly, and maximum order accuracy is maintained.

eCommerce continues to grow at an unprecedented rate in India. This means that you are expected to see competition in the online shopping space in the future. If your fulfillment and distribution process is sorted out and outsourced with the right 3PL provider, you can easily ace eCommerce! 

At Shiprocket Fulfilment; we ensure that each order is processed with a hundred percent accuracy. We promise 99% fulfillment accuracy and also help you deliver 3X faster. Here is a detailed look at the order fulfillment process in the warehouse to give you more insight into our warehouse operations. 

Before we begin, let’s look at what Shiprocket Fulfillment is and how you can benefit from it. 

About Shiprocket Fulfillment 

Shiprocket fulfillment is the eCommerce warehousing and distribution arm of Shiprocket. We provide you with an end to end fulfillment solution that takes care of operations starting from inventory management

, order management, picking, packaging, and shipping. With Shiprocket fulfillment, you get access to a pan India network of eCommerce fulfillment centers located in prime locations across the country. 

What We Offer

Shiprocket Fulfillment provides you with a plethora of services. Some of the benefits include inventory management, order processing, order management, and shipping. All you have to do is send your inventory to the Shiprocket fulfillment warehouse, and we will take care of all the incoming orders in the area.

With Shiprocket Fulfilment, you can offer your customers one-day and two-day delivery options, sync your marketplace and website to maintain maximum order accuracy, and ensure a positive customer experience. 

Currently, we have fulfillment centers located in Delhi, Gurugram, Bengaluru, Kolkata, and Mumbai. Many other locations are going to be added soon.

Here is the order fulfillment process for Shiprocket Fulfillment. 

Order Processing at Our Fulfillment Center

Receiving of Products

The first step of order processing at the Shiprocket fulfillment warehouse is receiving products. You have to assign generated barcodes to every item, pack them in boxes, and send them to our fulfillment center. 

Once the products are received at the fulfillment center, our operators make a gate entry of the merchandise you sent. This is followed by a thorough product barcode scanning and quality check to ensure your goods are hundred percent accurate receipt.

After the quality check and barcode scanning, the goods receipt note (GRN) is completed.

Storage and Inventory Management 

The next step involved in the fulfillment processes is storage of inventory. All the products are stored in unique barcodes and storage bins. 

Enough payments enter the inventory area is divided into zones based on categories. The zones are further divided into aisles, racks, and shelves. 

After each of your products is scanned with the storage bin barcode, it is stored in the designated area, and the product goes live for sale.

Order Picking

Now when you receive an order, a picklist is generated, and picking operators get to the task of collecting items from their designated shelves.

Orders from multiple sales channels are matched and fit together to reduce time and increase efficiency. The products are picked after scanning the product and bin barcodes using handheld terminals (HHT devices). 

Packaging

After all the products of an order are picked, they are taken to a packaging station. Here the product code is scanned using a scanner, and once it maps with the sales order or shipping label, an invoice is automatically generated. Finally, the product is packed and labeled.

You can either send in your packaging material or opt to pack your material with Shiprocket packaging. We use the best quality packaging material like bubble wraps, corrugated boxes, shipping bags, and tapes.

Weight Measurement 

This might seem like an additional step, but it is essential to reduce your weight disputes with courier partners. We have installed an automated falcon machine in all our fulfillment centers. This machine is similar to the weight measurement machine used by courier companies. Once your product is packed and labeled, they are scanned with this device, and the dimensions, deadweight, and shipment images are automatically captured. This additional step helps you reduce weight disputes, and we can place a much stronger claim with the courier companies. 

Shipping & Dispatch

Lastly, courier partners are allocated to your shipments. To make the process even faster and more efficient, the shipments are segregated based on the courier partner. For example, if there are a total of hundred shipments, and 20 of them will be shipped with Delhivery, they are batched together irrespective of the seller or brand. 

This accelerates the process, and all the AWBs of one courier company are scanned. A single manifest is generated, the pick up scheduled, and the courier executive picks up the products for further delivery. 

This constitutes the order fulfillment process in the Shiprocket’s fulfillment center.  Now, let’s have a look at the benefits of choosing Shiprocket Fulfillment for your eCommerce business.

Benefits of Choosing Shiprocket Fulfillment 

1-Day and 2-Day Delivery

With Shiprocket fulfillment, you can provide one day and two-day delivery to your customers as you store inventory closer to them.

Reduced Shipping Cost

You can reduce the shipping costs by up to 20% as the inventory is talked closer to the end customer, and you have to pay much less for intracity and intra-zone orders. 

Decrease RTO By 2-5%

As you deliver faster, the chances of non-delivery reduce, and you can fulfill orders at a much faster pace. This enables you to reduce RTO by 2 to 5%. 

No Additional Warehouse Investment

As you are outsourcing your entire inventory management and processing, you do not need to invest in any additional capital to maintain a warehouse.

Quick and Easy Integration With Sales Channels

You can also integrate your Shiprocket fulfillment platform with leading sales channels to ensure you do not miss out on any incoming order. 

30-Day Free Storage

You get 30-day free storage for all your items. This offering is ideal for fast-moving inventory as you can save a lot on storage costs. Processing rates start from Rs.11/unit. 

Conclusion

Shiprocket Fulfillment is a trusted and reliable eCommerce fulfillment solution for your business. You do not need to worry about the logistics and processing of orders once you tie-up with us. We hope the entire look into the process has helped you gain more insight into the fulfillment centers and make a much more informed decision for your business. Do reach out to us in case of any queries! 

Fulfillment is the most crucial step in your eCommerce business. It can become challenging to maintain fulfillment operations’ quality and synchronization.  There are several KPIs you have to track to support the success of your fulfillment operations. Otherwise, you might end up spending extra and not getting the desired results. Handling incoming orders is the most critical aspect of your business, and you must track them thoroughly to not miss out on any. 

To ensure the successful processing of every order, you must measure order accuracy. It is one of the most important metrics to track as it is linked directly to the customer experience. To maintain maximum order accuracy, you must ensure proper synchronization between other operations involved in fulfillment like picking, packaging, and shipping.

Let’s look at what order accuracy is and how 3PL fulfillment providers can help you achieve the KPI’s desired results. 

What is Order Accuracy?

Order accuracy refers to the number of orders that you thoroughly fulfilled and shipped to the customer’s doorstep without any error. The errors could include mispacking of an item, wrong order quantity, wear, tear, etc. It is an important metric to track as it directly correlates to the customer experience. It can be difficult as it involves a certain amount of manual intervention. However, you must work on this metric to ensure that your customers have a positive shopping experience with your website.

Order Accuracy Rate Formula

To calculate order accuracy, you must calculate the order accuracy rate using the following formula – 

Order accuracy rate = (Total orders fulfilled accurately / Total orders fulfilled) * 100

So, for example, if you fulfilled a thousand orders from your warehouse, and 100 of them had processing errors, then your order accuracy rate will be – 

Order accuracy rate = (900/1000)*100 = 90%

What is a Good Order Accuracy Rate?

The fulfillment supply chain does not consist of only one operation. There are several systems, mechanisms, and people involved in creating the ideal fulfillment supply chain. Therefore, achieving a 100% order accuracy rate is not always perfect, even though it is the aim. However, you must maintain your accuracy rate closest to a hundred percent.

Almost all day to see brands, marketplace sellers, and social sellers try to keep their order accuracy rate between 96-98%. 

A reasonable order accuracy rate eventually constitutes a positive customer experience and wholesome reviews on social media. Many businesses lose out on customers because they cannot achieve the right order accuracy and have more negative experiences than positive ones.

Why is Tracking Order Accuracy Vital?

Positive Customer Experience

The order accuracy is directly proportional to a positive customer experience. If you do not deliver products correctly to the customer or they are incorrect in quantity, you will have to bear the brunt of negative feedback and might also lose out on existing customers. Along with that, you will also have to arrange for RTO and pay an extra amount for that. Therefore, tracking order accuracy will help you analyze your fulfillment process and improve your order management. 

Identify Loopholes in Process

Measuring the order accuracy rate will help you identify loopholes in your fulfillment process. Suppose you notice a trend of reduced-order accuracy over a period. In that case, you can quickly identify the loopholes of your supply chain by analyzing each process and understanding where there is a shortage.

Innovate for Improved Order Management

Another advantage of the order accuracy rate is rich insights. The order accuracy rate will help you look for more innovative methods to improve your order management and accuracy. Even if your order accuracy rate is maintained, the data will give you enough insight into improving your customer experience.

Best Practices to Improve Order Accuracy

Audit Operations Regularly

The best way to improve your order accuracy is by auditing your warehouse operations regularly. This will help you analyze every step involved in the fulfillment supply chain, and you will be able to derive results as to why your order accuracy is not improving.

Improve Inventory Management

Inventory management has a direct impact on order management. Try to maintain a real-time inventory management tracking system so that you can analyze incoming orders and correlate them with your inventory. This will help you maintain your stock better and process incoming orders at a much faster pace.

Use the Right Technology

Using an automated system for your order management can help you improve order accuracy. As the system will be synced with your sales channel or marketplace, you will be able to process every incoming order and send it to the right stakeholder in your fulfillment supply chain. If the process is manual, there are chances that you will miss out on a certain number of orders, and that will eventually lead to a decreased order accuracy rate. 

Optimize Picking and Packing

The next most crucial aspect of your fulfillment supply chain is picking and packing. If these are not carried out accurately, there are chances that the order accuracy rate will be affected negatively. Therefore, for picking operations, utilize handheld devices (HHT) to pick products accurately and match them with the order. Have dedicated packing stations and compare your product packaging with SKUs so you can accurately bag every order without errors. 

Outsource to 3PL Providers

The best way to improve your order accuracy rate is by outsourcing your fulfillment operations to 3PL providers. 3PL providers have dedicated resources for every fulfillment operation, and they will be able to process your orders faster, and with far better accuracy. 

Shiprocket Fulfilment is one such 3PL fulfillment provider that can help you process orders with 99% accuracy and deliver them 3X faster to customers by providing one-day and two-day delivery options. 

Final Thoughts

Improving order accuracy rate is essential for comprehensive order management and fulfillment operations. Calculate the order accuracy rate to ensure seamless fulfillment, timely delivery, and a positive customer experience. 

eCommerce in India is growing rapidly. According to a report by KPMG, the eCommerce retail logistics market is valued at USD 1.35 billion in 2018 and is projected to witness a growth of ~36% in the coming five years. The retail supply chain has been completely disrupted after the advent of eCommerce. What earlier used to be procuring, storage and selling are now replaced by elaborate processes like procuring, storing, packaging, shipping, and returns. Any new process implementation will have its own set of challenges. Similarly, eCommerce has had its share of roadblocks for people who start their journey, but there have also been many sophisticated solutions. 

Before starting, it is important to see what these challenges are so you can tackle them easily. Here are some eCommerce supply chain challenges that startups face, along with a few useful solutions. 

What Does the eCommerce Supply Chain Comprise?

Before diving into challenges, let’s identify what the eCommerce supply chain comprises. The supply chain is basically the chain of operations involved in the production and distribution of a commodity. The eCommerce supply chain comprises operations like manufacturing, storage, order fulfillment, and distribution. 

Read more about supply chain management.

These functions are vital for the successful functioning of eCommerce and a delightful delivery experience. Even if you face disruption in one step in the entire chain, it will impact your entire business. Therefore, it is important to consider the challenges faced by startups so you can stay prepared early on in the process. 

eCommerce Supply Chain Challenges for New Startups

Product Sourcing

This step essentially constitutes a manufacturing aspect of the supply chain. It can get difficult to source products for eCommerce stores from several retailers. Also, many sellers make the mistake of only approaching one seller for their sourcing. It is important to reach out to multiple sellers for your product so that you can stay on top of your inventory at all times. 

Coordinating with your suppliers is the main challenge. You can resort to maintaining a centralized inventory system to ensure that your suppliers send your products on time you update them with your business requirements. 

Inventory Management

After sourcing your products or manufacturing them, the next challenge that crops up is inventory management. Inventory management refers to the process of managing all the products that you will sell in the future. It can be a major challenge to maintain your inventory and synchronize it with the incoming orders. Also, inventory management needs to be top-notch so that you do not spend a lot on sourcing. Inventory is your biggest asset, but it will not take long to become the biggest liability if not managed correctly. 

Many sellers cannot forecast that inventory demand and purchase more than what is required or much less. This ends up with the situation of dead stock or inventory stock out. To avoid these challenges, make use of real-time inventory management software that helps you predict inventory demand and synchronizes with the order management system to analyze the inventory requirement in real-time. 

Warehouse Management

Inventory storage is another challenge many eCommerce businesses face. Since the business is run online, most businesses think they can store inventory at their place and sell peacefully. However, long-term planning is essential in eCommerce, and as your business grows, you will have to invest in a separate space for storing your inventory. The warehouse comes in handy in such situations. However, warehouse management is challenging as the warehouse pays costs a lot. There are other things that you need to take care of in the warehouse, like the overhead costs, rent, electricity, planning, etc. 

Tie with a 3PL partner to store and ship your goods, so you do not have to take on the challenge of managing and storing inventory yourself.

Shipping and Logistics Management

The next and most critical challenge faced in eCommerce supply chain management is shipping and logistics. Everything else is under your control, but shipping and logistics require you to depend on a third-party courier company. This highly impacts your customer experience as the shipping and delivery experience is what counts for the customer. 

A major challenge faced by most car companies is being dependent on a single courier partner and a limited pin code reach. This limits them from shipping their products across the nation. A practical solution to this problem is tying up with multiple courier partners via a shipping solution. This way, you will address several other challenges with technology and a data-backed shipping solution – like Shiprocket. 

With Shiprocket, you get access to 17+ courier partners and 29000+ pin codes along with shipping rates starting from Rs. 20/500g. 

Order Fulfillment

Order fulfillment comprises all operations starting from order management, picking, packaging, and shipping. It poses a major challenge for eCommerce sellers as you require skilled resources to carry out these operations. The operations need to be error-free, and the packaging needs to be tamper-proof. Since many sellers cannot source good quality packaging material at the best rates, they compromise on the quality, which eventually leads to a poor customer experience. Therefore, we recommend you shop for your packaging material in bulk and store it for further use. Another smart thing to do is allocate a specific packaging material to each SKU. This way, you will be able to eliminate any confusion and carry out error-free operations. 

eCommerce Security

The next big challenge is eCommerce security. How secure is your platform for shopping online? Does it have any fraudulent activity? Is your customer’s data safe? Do customers have safe payment gateway for payments? These are some of the few questions you might come across as an eCommerce business. One case of data or security breach and your business can take years to build the same reputation. 

A few steps you can take include certificates, web app firewalls, bot blockers, address verification systems, etc.

Ensure 100% security before making your store live and review it periodically to ensure safety. 

Return Order Management

Handling return orders can be a menace if you have to pay extra for every returned order. Sellers must draft a return policy and show it on the website so that customers can be clear about how they can ask for returns. In today’s eCommerce, almost every seller is offering a return for all their orders. If you do not offer this facility, it can be a loss for your business. However, returns are expensive and cost almost double as forwarding orders. Most of the time, non-delivery can also lead to returns which becomes a major problem for sellers. 

Customer Service

Handling customer complaints and queries after processing orders is a major challenge as many queries flow at once. Also, since the customer is not in front of you, it can get difficult to explain the entire process by a call or email. Sellers face a major challenge in setting up a process for effective query resolution and often cannot train their resources to handle difficult queries. We suggest that you set up a customer service management software that can help you provide information via help talks and train your support staff regularly about updates to tackle this challenge easily. 

Shiprocket Fulfillment – The Answer to eCommerce Supply Chain Challenges

eCommerce supply chain challenges can be difficult if not tackled properly. The best solution to all these fulfillment challenges is a 3PL fulfillment solution that you can hire for your business. A reliable solution is Shiprocket Fulfillment.

Shiprocket fulfillment is an end-to-end 3PL fulfillment solution that helps you with inventory management, warehousing, and distribution. You can store your product in Bengaluru, Delhi, Gurugram, Mumbai, and Kolkata to process orders seamlessly. Our team will help you with error-free operations and ensure the fastest delivery to customers. Since you store products closer to your customers, you will be able to deliver 3X faster and save on shipping costs.

Conclusion

Knowing your eCommerce fulfillment supply chain challenges is essential before starting your eCommerce start-up. It will enable you to face these challenges head-on with practical solutions so that you move forward actively with your business plan. We hope these challenges give you some insight into the eCommerce supply chain process, and you will be able to handle your business much better with the solutions provided.  

Running a retail eCommerce business can be a difficult task. You have to be on your toes at all times, and you cannot miss out on a single aspect of your business, right from your website to the product being delivered. Throughout this process, your 3PL fulfillment provider plays a significant role.

They are essentially responsible for the entire fulfillment supply chain and ensuring that your product gets delivered to the customer in the right state. However, if results are declining and you are not getting the kind of service you expected, it is time to move ahead. How do you know if it is precisely the right time to switch your fulfillment provider. 

Switching your 3PL fulfillment provider can be a critical decision for your business. In a way, it will steer the future of your sales and delivery operations. But it is vital to take a look at your current 3PL providers and fulfillment strategy to ensure that your business is headed for success. 

A fulfillment provider not aligned with your business could also be a significant reason for stunted growth. Therefore, it is essential to have a look time and again if your association is successful or not. With time as your business grows, requirements change, and it is not necessary that the third-party fulfillment provider you started with also grows with you. Since there are many variables like inventory, an established professional comfort, and other aspects involved, it may seem like a nightmare to switch your 3PL provider. But honestly, it is not. Let’s look at the importance of a 3PL and decide when it is time to change your 3PL fulfillment provider. 

Impact of 3PL Fulfillment on Your Business

Your 3PL fulfillment provider has a direct impact on your eCommerce business. They are responsible for the timely delivery of your product and the processing of each incoming order. Hence, they have a direct role to play in customer satisfaction and positive delivery experiences.

According to a report by Comscore, 73% of shoppers expect affordable and fast delivery. Therefore, if your three pair provider does not provide you with essential services like fast shipping and error-free operations, it could lead to a negative impact on your business. 

Importance of 3PL Fulfillment

Error-Free Operations

Third-party fulfillment providers specialize in order fulfillment so they can provide you with tamper-proof packaging and error-free shipping. This becomes a bonus for your business as you do not have to carry out work like picking, packaging, and shipping yourself.

Trained Resources

All the staff at a fulfillment center is trained for specific operations. If you take care of these operations yourself, there is a chance that you might be multitasking. Having dedicated and skilled employees reduce the risk of errors and improve efficiency. 

Automated Operations

Fulfillment centers have The latest warehouse management and inventory management systems. These usually work synchronized with each other, and you do not need to worry about your order management and fulfillment operations.

How to Decide When It’s Time to Change Your 3PL Fulfillment Provider?

Incorrect Orders

Even one incorrect order packaging and delivery can be a red flag for your business. But even if you want to give them a second chance, several incorrect orders are the right signal. It means that your fulfillment provider is not as efficient as they claim to be, and it is time that you make a move to ensure that your business is not impacted by low customer satisfaction.

Increase in Order Volume

Most times, the fulfillment center you start with can only handle a particular order volume based on their storage and fulfillment capabilities. When you realize that you have a steady increase in order volume, it could be a sign to move your full payment provider to a different one. Lower space for functioning and limited growth might be hindering your eCommerce business by delayed delivery and unsatisfactory work. 

Rising Fulfillment Costs

Which time, your business will grow, and you might need to reconsider your fulfillment costs. One of the primary reasons to outsource to a 3PL fulfillment provider is to reduce your fulfillment costs. If your fulfillment provider is continuously increasing their demand, it is time you moved ahead. Growing warehouse, labor, and freight costs can be a threat to your profits. 

No Latest Innovations

If your full payment provider is not indulging in any latest innovations and is not adapting to recent technology, your business might be suffering. Since the eCommerce industry is progressing rapidly, it is necessary to adopt the latest technology and trends. 

Incompatibility With the Provider

The most important reason for signing up with a 3PL fulfillment provider is the ease of business. You want to make sure your fulfillment operations are simplified and taken care of, not worry about them as much, and take care of them yourself. But, if you feel your full payment provider is not doing justice to your business or you have to put in a lot of effort for dealing with them, it is best to move on. Having many incompatibility issues will eventually lead to unsatisfactory service, and you will have to suffer.

Shiprocket Fulfillment – The Ideal 3PL Fulfillment Solution for Your Business

Shiprocket Fulfillment is a reputed 3PL fulfillment provider that provides you with an end to end solution for warehousing, inventory management, and shipping. Once you sign up with Shiprocket fulfillment, all you have to do is ship your products to a fulfillment center. Like picking, packaging, inventory management, and order fulfillment, all the other operations will be taken care of by the fulfillment center. We have fulfillment centers located in Delhi, Gurugram, Mumbai, Bengaluru, and Kolkata. Shiprocket Fulfillment provides you with several benefits like 2X faster delivery as your store products are stored closer to your customers, affordable shipping rates, error-free operations, tamper-proof packaging, and reduced weight discrepancies.

Final Thoughts

Switching a 3PL fulfillment provider might look like a difficult task, but it is not that difficult if you dwell deeper. Be cautious about the time you spend thinking about it, not regret your decision later as the migration might be difficult if not thought through.

According to a report by marketdataforecast.com, the size of the global dropshipping market was estimated at 111.28 billion dollars in two thousand and eighteen. This number is said to record a CAGR of around 29% from 2020 to 2025. 

Dropshipping is turning out to be a very successful business model for e-commerce. It has already been shown to be quite an advantage for sellers who are just starting and want to experiment in the domain without investing a lot in storing inventory.

But what exactly is dropshipping, and what is the supply chain associated with the fulfillment process? Let’s have a look.

What is Dropshipping?

Dropshipping is a popular retail business model where the seller does not host any inventory. The seller only accepts customers’ orders and processes them directly from the supplier once they receive an order. It is the responsibility of the manufacturer or supplier to deliver products to the customer.

For example, you have a website that sells sunglasses. If you do not store an inventory of these sunglasses and instead ask your supplier to ship them directly to the customer, then you are a dropshipper. 

Who is Involved in the Process?

As understood by the definition, there are two critical stakeholders involved in the process of dropshipping. Let’s have a look at who these stakeholders can be.

Third-Party Suppliers

Manufacturers

Manufacturers are entities that do not sell the product directly to the customer. They are the ones who create the product in bulk and sell it further to wholesalers or retailers. In most cases, manufacturers do not directly sell to customers. They have tie-ups with several companies that source their products. Since the production is in bulk, they prefer selling larger quantities. Manufacturers are the stakeholders that ship the final product to the customer. In other words, they can be the third-party suppliers for retail drop shippers.

Wholesalers

Wholesalers are sellers who purchase products in bulk and further sell them to retailers and small shop owners. Wholesalers usually operate in a niche and hold products from one category specifically. So, retailers typically have to tie-up with multiple wholesalers for different product categories in a dropshipping business. Usually, wholesalers sell only to retailers and not directly to the general public. They, too, stock products in massive amounts and have fixed deals with retailers for outsourcing their products.

Retailers

The next stakeholder in a dropshipping business is the retailer. This is the entity that is the face of the company. In simple words, a retailer showcases the products but does not take the responsibility of storing and shipping them. Retailers usually have their store or e-commerce website where they display and market the products, take incoming orders, and dropship them with a third-party supplier.

The Dropshipping Fulfillment Process

By understanding the definition and the role of stakeholders in the dropshipping free payment supply chain, it is safe to say that dropshipping is a service that your third-party supplier provides to you. Therefore, it is essential that you tie-up with the best and the most reliable suppliers to get the best prices and the best service. The service your dropshipping partner provides Will directly reflect on your brand. Therefore, it is essential to maintain a stable supply chain process and efficient communication between the two parties to ensure that customer satisfaction and operations are not affected in any way.

Let’s have a look at how the dropshipping fulfillment process works- 

1. Customer Places the Order With Retailer

The retailer has an outlet in the form of a website or a store where the customer can place an order. The customer places an order for the required items along with the quantity. This order is generated by the retailer, who then takes care of the rest of the process. 

2. Retailer Places Order With Supplier

The retailer then takes the total amount of orders for a day or a week and shares it with the third-party supplier that is a manufacturer or a wholesaler.

3. Supplier Packs & Ships Order 

This third-party supplier takes in the bulk orders, packs them, and then ships them with suitable courier partners or shipping companies. 

4. Supplier Shares Tracking Details with Retailer 

The supplier then shares tracking details with the retailer. These contain the estimated delivery date, order details, etc.

5. Retailer Shares Order & Tracking Details with Customer

Finally, the customer shares the order details along with the tracking information with the customer. 

Try Shiprocket for Dropshipping Fulfillment

Suppose you are a wholesaler or a manufacturer who does not have a storage space to house inventory. In that case, you can make use of the multiple fulfillment centers provided by Shiprocket Fulfillment. Shiprocket Fulfillment has fulfillment centers across India in cities like Delhi, Kolkata, Mumbai, Gurugram, and Bengaluru. Once you store your products with Shiprocket Fulfilment, we can take care of all your incoming orders and ensure they deliver to the customers as quickly as possible. You also get the advantage of storing your products closer to end customers, and this can give your wholesale business a competitive edge when dropshipping.

Along with this, you can reduce shipping costs, ship with multiple courier partners, get the best packaging and processing services, reduce weight discrepancies, and deliver orders to 2X faster. Overall, you can provide customers with a mind-blowing delivery experience and improve your retailer’s brand’s quality. This can also give you a chance to tie-up with several retailers and opt for dropshipping with them.

Conclusion

The dropshipping fulfillment supply chain can be tricky if each stakeholder’s role is not taken into account. Since this fulfillment strategy requires a lot of two and fro between various stakeholders, it is essential to use automation and technology to ensure that the correct information is communicated at all points. If all these things are kept in mind, dropshipping can turn out to be a lucrative business for third-party suppliers like manufacturers and wholesalers and also for retailers. It can be extremely lucrative for young individuals who are just starting their business and are not looking to house and invest in expensive inventory.