6 min read

A-Z of Shiprocket Fulfillment’s Warehouse Management Process

December 17, 2020 by Srishti Arora - 6 min read

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.

SR Fullfilment

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). 


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. 


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! 

Shiprocket Fulfillment features
Dec 17, 2020 by Srishti Arora

5 min read

What is Order Accuracy and Why is it Essential?

December 15, 2020 by Srishti Arora - 5 min read

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. 

Dec 15, 2020 by Srishti Arora

6 min read

Benefits and Functions of Warehousing for your eCommerce Business

December 11, 2020 by Rashi Sood - 6 min read

Technological advancements are paving their way into most industries, and the warehousing industry is not an exception. The recent advances in the industry have redefined its day-to-day operations and functional aspects. The launch of end-to-end fulfillment solutions has further transformed the industry.

Functions of Warehousing

Considering their global scalability, businesses understand the importance of fulfillment solutions for their business. A warehousing fulfillment solution provider offers end-to-end fulfillment solutions where it stores the inventory and packs and ships the products on your behalf when you receive an order.

In this blog, we shall discuss what a warehouse is, the need for warehousing, features of warehousing, warehousing types, and functions.

What is Warehousing?

Warehousing is the act of storing physical goods before they are sold to customers. It stores the products safely and securely in an organized way. Keeping products in the warehouse helps track the items with convenience—when they arrived, how long they will stay in the warehouse, and the quantity in hand.

In an eCommerce business, the products are stored until an order is placed. Then it is directly shipped to the customer from the warehousing facility. However, in a retail setup, inventory is temporarily stored in a warehouse, and then it moves to the retail store.

A small business can keep products at home until they outgrow the space. Then a business can lease a warehouse or outsource logistics requirements to a third-party solution.

Need for Warehousing

Functions of Warehousing
  • Some products are produced and manufactured during a particular season only. Warehousing is required for such products and also ensures they are available during the off-season as well.
  • Similarly, some products are manufactured throughout the year, but their demand is only in a particular season. Warehousing is required in this case as well.
  • A warehouse is also required by companies that opt for large-scale production and also bulk supply.
  • Warehouse helps in ensuring that the product demands are met quickly and efficiently.
  • Warehousing helps track goods production and their movement to ensure that the companies produce the goods continuously.
  • Government stores necessary goods in warehouses and controls the supply in the market. Here, warehousing plays a crucial role in price stabilization.
  • Bulk breaking is another such requirement for which warehousing is crucial. A trade agent imports goods from another country in bulk. He then takes all the products to his warehouse and divides them into small parts to supply to the buyers easily.

Types of Warehouses and Warehousing Features

functions of warehousing

The following are the three types of warehouses:

Private Warehouse

The private warehouses are the warehouses owned and operated by the business owners themselves. They fulfill their own storage needs. Notably, not all business owners can afford to operate their own warehouses as it requires heavy investment. Only big companies that require large storage capacity and can afford money can maintain private warehouses. These big companies have a network of their warehouses in different parts of the country to manage their sales and shipping.

Public Warehouse

It is a specialized warehouse that offers storage facilities to different businesses, whether big or small, throughout the country in return for a certain sum of money. A public warehouse can be owned and maintained by an individual as well as a cooperative society.

Public warehouses work in accordance with the rules and regulations set by the government. Notably, they are crucial for agricultural produce also. Therefore, the government, too, is encouraging the formation of public warehouses.

Nevertheless, public warehouses are useful to business communities as well. As discussed above, not all businesses can afford private warehouses because of the huge capital investment. Such companies can quickly meet their storage needs economically by making use of public warehouses.

Public warehouses provide storage facilities at a low cost. They are well-constructed and guarded 24×7. Also, these are generally located near most of the modes of transportation, such as highways, railways, and waterways.

Bonded Warehouse

These warehouses are licensed warehouses by the government and are used to keep imported goods until their custom duty is paid. They are generally located near ports. These warehouses are operated either under the customs authorities or operated by the government. The warehouses give an undertaking that they will not provide the products to the owners until the customs authorities give their consent. So, the goods can’t be moved without paying the customs duty.

So, the owner of the goods cannot use the products without getting permission from the customs authorities. Hence, they are called bonded warehouses.

Notably, bonded warehouses are beneficial for importers as well as exporters. If an importer can’t pay the customs duty immediately when his goods arrive, he can store goods in the warehouse. In fact, he can also withdraw the products in installments by paying small portions of customs duty.

Functions of Warehousing

Functions of Warehousing

The following are the functions of warehousing:

Goods Storage

Storage of goods is the most basic function of warehousing. The goods are first manufactured in the factory and then are stored in a warehouse till they are consumed by the consumers or brought by the buyer.

Protection of Goods

After storing, a warehouse also protects the goods from loss and damage from dust, dirt, heat, wind, and moisture. Warehouses also make special arrangements as per the products’ nature, like products that require a certain temperature to store them. Warehousing helps cut down losses due to wastage or spoilage during storage.

Risk bearing

Warehouses also take some risks while storing the goods. Once the goods are with the warehouse for storage, their safety and security’s responsibility passes on to the warehouse. So, the warehouse becomes responsible for any theft, loss, damage, or even fire. Thus, the warehouse-keeper takes all the precautions to prevent any mishap.


When goods are kept in a warehouse, the business unit receives a receipt against the deposit of goods. The warehouse-keeper can issue a document on the name of the owner of the goods, called the warehouse keeper’s warrant. This warrant is proof of the products kept in the warehouse.

While the goods are kept in the warehouse, the business owner can avail business loans from banks and NBFCs using this warrant as proof or security.


Some products are not used/consumed in the form they are manufactured. These products are first processed to make them consumable. For example, fruits are ripened, timber is seasoned, and paddy is polished. Some warehouses also undertake these services on behalf of the business.

Grading and Branding

Some warehouses also offer the services of grading and branding products on your behalf. You get various facilities for mixing, branding, and packaging products so they can be handled and sold conveniently.


Some warehousing providers also include transportation arrangements to bulk depositors. Some even collect goods from the manufacturing place and send products to the delivery place.

The need for a warehouse is simple – to store inventory and protect products. In case you can’t afford to maintain your own warehouse, it is best to outsource to a third-party logistics provider that can store, package, and ship your products conveniently and seamlessly!

Dec 11, 2020 by Rashi Sood

7 min read

eCommerce Supply Chain Challenges Faced By Startups and How to Overcome Them

December 10, 2020 by Srishti Arora - 7 min read

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.


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.  

Dec 10, 2020 by Srishti Arora

7 min read

What is Dead Stock and 7 Easy Ways to Get Rid of It

December 8, 2020 by Rashi Sood - 7 min read

According to a report by Wasp Barcode, over 46% of SMBs either don’t track inventory or use a manual method. These practices often lead to situations like the accumulation of dead stock or a stock out. Both these situations can be harmful to your business as it leads to additional inventory costs that you will have to bear.

Inventory is one of the most critical aspects of any eCommerce business. To run your business successfully, you need to maintain sufficient inventory. This maintenance costs you a considerable amount. Deadstock might be a significant cause for an increase in inventory costs, and you might not be aware of it. Even if you are aware of it, you might not know how to get rid of it. 

Slow-moving inventory, along with deadstock, is a major bummer for a lot of businesses. Don’t worry; we have a few easy tips to get you started with getting rid of dead stock. 

What is Dead Stock?

Deadstock refers to the inventory that is not selling and is accumulating in your warehouse or storage. You may not realize, but you are spending way too much on maintaining this dead inventory. It takes up an ample amount of warehouse space, and you need to allocate resources in maintaining the quality of these. If you sell perishable items like cosmetics, you will be at a loss because they will expire soon.

Having deadstock can be a significant liability for your business; you must understand how you might have accumulated it. Let’s have a look. 

Here is What Causes Dead Stock?


When you begin your eCommerce store, there is a tendency to go overboard with stocking inventory. There are several instances where sellers might purchase more than required as they may expect sales to be high. However, this may not be the case with all products. In such instances, you overstock inventory and pay extra in maintaining the additional pieces.

Improper Inventory Forecast

Another major cause of death stock is improper inventory forecasting. We have stressed time and again the importance of an accurate inventory forecast as it tells you the amount of inventory you must purchase. If you are buying lower than what is forecasted, you will be paying for inventory stock out, and if you are buying more, you might face the threat of handling dead stock.

Defective Products

Often, you get defective products from your supplier, and you have no choice but to store them. This can lead to the accumulation of dead stock for which you pay an additional amount in storage. It is best to eliminate these by selling them in scrap or finding dealers to purchase these products.

Improper Marketing & Promotion

Another major cause for the accumulation of dead stock is improper or insufficient marketing and promotion of products. This eventually leads to low sales, and you do not sell the predicted quantity. It is imperative to promote the product about the inventory you have. Your marketing research must match the product amount and quantity. If you have a low value and higher dose, you must be marketed on almost all platforms and significant target groups. If you sell only a useful product for a small target audience, you must stock the quantity accordingly.

How to Get Rid of Dead Stock?

1. Giveaways

Giveaways are an excellent way to get rid of dead stock. If you sell products for free, customers would be delighted to get the products from you. Nothing excites Indian buyers more than free goods and services. If they trust your brand, you can establish a more excellent bond with them by arranging for giveaways. Tie-up with influencers who are thriving in your field and get them to set giveaways. This will also help you promote your product along with getting rid of dead stock. Even though you will not earn a lot of monetary profit, it will be a solid move for driving brand awareness. 

2. Flash Sales

The best way to eliminate slow-moving or dead stock is by creating urgency among your buyers. Flash sales are a great way to do so. Offer a higher discount than usual for a short period on the deadstock you want to get rid of. Actively promote this sale on all your social media and relevant marketing handles. This will create a sense of urgency in your buyers, and they might be inclined towards making the purchase sooner. 

3. Product Bundles

Bundling products that are usually bought together and selling them as bundles on your website can help you get rid of dead stock faster. If people see more products bundled at a lower price than each product, they will prefer buying it. Along with this, you can also work on complementary product recommendations that will help you promote more bundles simultaneously. 

4. Utilize an Inventory Management System

Making use of an automated inventory management system can help you analyze inventory in real-time. Instead of using a manual process that takes time to update and give you a detailed analysis of your merchandise, an automated system will provide you with real-time results and improv inventory forecasting. This will enable you to make much more informed decisions about your inventory, and you will be able to avoid situations of dead stock and inventory stock-outs. 

Shiprocket Fulfillment

5. Synchronize Order and Inventory Management

Using a centralized inventory management system and synchronizing it with order management can help you process inventory and orders in real-time. This will help you analyze stock in real-time with each incoming order. In case you are short on the list, you will be able to order inventory in advance, and if your orders are lower, you can put a strategy for slow-moving inventory sooner. This will help you prevent the accumulation of deadstock, and if at all it persists, you can get rid of it more shortly. You can store your products with Shiprocket Fulfillment and process them much faster with advanced warehouse and inventory management systems in place. 

6. Offer Free Shipping

When you provide offers like free shipping on your deadstock along with your flash sales and giveaways, it prompts users to purchase your product. It can be used as a great promotion strategy to lure more customers to your store. And to offer free shipping, you do not need to spend a lot of money. Shiprocket offers you shipping with 17+ courier partners at the cheapest rate starting from Rs.20/500 gms. 

7. Deploy Targeted Marketing for These Products

Another excellent way of getting rid of the dead stock is by marketing these products extensively. Once you realize that you have a lot of dead stock that you can get rid of, create specific marketing plans and audiences for these products and promote them on search engines and social media. This will help you reach a broad audience sooner, and you will be able to get rid of the stock quicker. 

Final Thoughts

Dead Stock is a giant menace for your business if not taken care of on time. Make sure that you analyze your inventory regularly to see if you have any dead stock. Try using these strategies to get rid of dead stock and run your business smoothly.

Shiprocket Fulfillment
Dec 8, 2020 by Rashi Sood

6 min read

When Should You Switch Your 3PL Fulfillment Provider?

December 3, 2020 by Srishti Arora - 6 min read

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.

Shiprocket Fulfillment features
Dec 3, 2020 by Srishti Arora

4 min read

Effective Methods to Reduce Inventory Costs

November 26, 2020 by Srishti Arora - 4 min read

The inventory hold for your business is one of the essential capital you have. It is what runs your business, and you need to be aware of its expenses and operations at all times. Even though inventory is essential for your business, it can also be one of the most challenging liabilities if you do not take care of the money you spend on it.

Monitoring your inventory is essential as it can incur many excess costs in storing and processing it. This is what is known as inventory costs, and it is necessary to reduce your inventory cost to run your eCommerce business successfully and profitably.

Let’s look at what inventory costs are, their types, and how you can reduce them for your eCommerce business. 

What are Inventory Costs?

Inventory costs referred to the total costs associated with inventory management for any eCommerce business. These include the sourcing cost, storing costs, processing costs, carrying costs, etc. Since inventory is critical and comprehensive, sellers tend to spend a lot of their capital on managing inventory rather than optimizing it. 

Inventory costs can increase exponentially if the inventory is not moved quickly. The carrying costs can eventually add up and cause considerable harm to your business. Let’s look at the different types of inventory costs and how to reduce them. 

Types of Inventory Costs

Ordering costs

Ordering cost referred to the setup costs that are incurred whenever you place an order from your supplier. These refer to the sourcing costs and the money you spent on procuring the goods you want to sell.

Holding costs

Holding cost is also known as carrying cost and is known as the costs you incur for storing the products before they are sold. These include storage space costs, service costs, financing costs, etc.

Shortage Costs

These refer to the stock out costs and are incurred when you run out of inventory and need to source extra for making sales. This could come off due to destructive production, emergency shipments, etc.

Spoilage Costs

Lastly, spoilage costs refer to the money that you spend when the inventory you have stored is spoiled or damaged. This is mainly applicable to perishable inventory like food, cosmetics, pharmaceuticals, etc.

How Can You Reduce Inventory Costs?

Regular Tracking of Inventory Costs

You are tracking your inventory costs regularly instead of just estimating them. Inventory carrying cost can account for many expenses, including the cost of deterioration, taxes, administration cost, capital, labor cost, etc. Along with this, other hidden costs are usually not taken into account. Regular tracking of inventory costs can help you stay up to date with the total expenditure, and you can optimize your operations and expenses accordingly. 

Regulate the Order Management Process

The order management system and inventory management operations must go hand-in-hand. If the sync between these operations is broken, either your inventory or order processing will suffer. Keep a thorough track of your customers and the ongoing orders so that you can move your inventory accordingly. Also, a sorted order management process will help you forecast demand so you can purchase stock, therefore. 

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Handle Excess Inventory

Storing excess inventory can be much more harmful to your business, as you will have to pay more for the storage and handling costs of these products. Your carrying costs will directly be impacted. If you have excess inventory, you can either return it, run sales to sell them off at cheaper prices, or ship them to your different warehouses. This will help you eliminate any excess inventory and save on additional carrying costs. 

Reduce Shipping Costs

Expensive shipping costs also add to your eventual inventory costs. Try to ship with a solution that offers you multiple courier partners so you can ship products faster. With a strong distribution network, you will be able to quickly get rid of your inventory and keep it fast-moving.

Make Data-Driven Decisions

Utilize the data you get from order management and inventory management systems to make insightful decisions. Don’t base your forecasts and decisions on estimates. Analyze the results and information you get from automated system analytics. Apply predictive analytics to see your future predictions and develop innovative solutions to invest in the stock. Come up with techniques to not order too much inventory and also avoid the problems of a stock out situation. 


Monitor your inventory costs regularly to assess where you spend most properly. Gauge weak spots and come up with solutions to tackle any roadblocks that come your way. Spend wisely and optimize your inventory management systems to make sure that you can reduce your inventory costs and optimize operations further on.

Shiprocket Fulfillment
Nov 26, 2020 by Srishti Arora

6 min read

Understanding Dropshipping Fulfillment and its Process

November 17, 2020 by Srishti Arora - 6 min read

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 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 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.


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. 

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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.


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.

Shiprocket Fulfillment
Nov 17, 2020 by Srishti Arora

7 min read

Learn to Choose Right Warehousing Solution for your Business

November 12, 2020 by Rashi Sood - 7 min read

Warehousing is a vital part of the supply chain. Effective warehouse operations help in efficiently managing inventory and enhancing customer satisfaction by delivering orders on time. Though the warehousing principles remain the same, the solutions have changed a lot over the years.

what is warehouse

Urbanization, evolving technologies, and the growing eCommerce sector have led to an increase in warehousing and logistics solutions such as third-party logistics.

What is Warehousing?

The storing of physical goods before selling them is warehousing. You securely store the goods in an organized way in a warehouse.

In a traditional brick and mortar setup, the inventory is temporarily stored in a warehouse and then shipped to the retail store for selling. In eCommerce, the inventory is stored in a warehouse until a customer purchases a product online, and then it is directly shipped to the customer from the warehouse.

For new and small businesses, warehousing can be done at home. However, when they outgrow the space, a proper warehouse is required. At this point, you will have to rent a storage space, or you can also outsource your logistics to a 3PL solution provider.

Key Elements of Warehousing

what is warehouse

Warehousing is the core of businesses that sell physical goods. Its crucial elements include:

Warehouse Operations

Warehousing operations refer to the processes related to the movement and tracking of goods and inventory taking place within the warehouse. This includes several functions, such as receiving inventory, placing each SKU under a separate location, and sending products.

It helps in:

  • Keeping the costs low
  • Keeping the customers happy
  • Staff productivity
  • Optimizing storage
  • Effectively using the equipment
  • Incoming and outgoing of inventory on time

Warehouse Management

Warehouse management is efficiently managing the day-to-day operations of a warehouse to ensure its proper functioning. Warehouse management includes administering the staff, stock hardware, inventory security, and association with couriers.


  • Obtaining required licenses and certifications
  • Ensuring the protection and security of the inventory at all times
  • Management of projected volume and labor
  • Arranging and supervising all the operations as the business expands or takes an unpredictable turn
  • Recording inbound and outbound shipments

Notably, inventory management software can also be used to manage incoming and outgoing inventory.

Warehouse Management System

A type of software, Warehouse Management System (WMS), provides necessary tools that help manage all warehouse operations effectively to eliminate manual processes and save time. It helps optimize inventory storage and tracking, workload distribution, and shipping of products.

With the help of software, you can get an insight into your warehouse operations in real-time.

Also Read: Learn Which is Right 3PL Logistics Solution

Considerations for Right Warehouse Solutions

what is warehouse

Choosing the right warehousing solutions is critical. It is a process that must be attended to with strategic considerations. Let’s discuss some critical considerations to make while choosing the right warehouse solution for your eCommerce business.


The location of the warehouse is indeed the most critical consideration. The location will directly affect fulfillment efficiency. Warehouse locations near convenient transport routes, such as roadways, railways, and shipping ports, will be a good option as it will assist you in shipping products conveniently. Besides, the size and scope of the warehouse will also play a critical role in the final location choice.

Notably, you can choose warehouses that are located at different locations in the country so that you can offer same-day or next-day delivery to your customers across the country.


  • If you own a small or mid-sized business, consider a location that is close to your company office or potential customers.
  • If you operate on a larger scale, storing inventory across multiple locations will help you meet regional demands easily and quickly.
  • The choice of location of the warehouse strongly depends on business growth. So, consider your short-term and long-term goals carefully.

Type of Warehouses

When it comes to finalizing a warehouse solution, you must consider the following two factors:

Time Frame

Public warehouses are your go-to option if your business involves seasonal inventory. They provide short-term storage. They charge monthly and sometimes include a combination of storage as well as transaction fees.

On the other hand, for long-term storage, contract warehouses are the best option. They handle the shipping and storage of products on a contractual basis. The payment is not only limited to storage space but also includes the cost of subsidizing equipment.

Cost of Warehouse Solutions

Warehouse cost is complicated and includes various cost factors than just the price of square footage. The cost of warehousing depends on your products and fulfillment needs. Interestingly, Shiprocket Fulfillment offers 30 days of free storage and then charges processing fees of just Rs. 11 per unit.


The kind of access you require is another important consideration that comes into the picture when choosing the right warehousing solution for your business.

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  • Who will access the warehouse from your company? How many people? Find answers in advance so you can avoid timing conflicts.
  • How many times will you require access to your products? You wish to access your products frequently or are comfortable with your products being solely handled by the outside facility.
  • What is your shipping and receiving schedule? Is it frequent, seasonal, or irregular?
  • All these factors are critical and need to be communicated with the warehousing service provider in advance.

Services Offered

The services and amenities offered by the warehousing solution also matter a lot. It varies from one warehousing service provider to another. You can consider the following factors:

  • Space
  • Equipment
  • Staff

Considering these characteristics will help you determine whether the warehousing solution will be able to handle your inventory volume or not. There are other specific requirements that depend on your product category—for instance, a sterile storage facility for products such as medical equipment or baby care products. Climate control for the maintenance of temperature and humidity levels is also imperative.

The other add-on services that you can look for include:

  • Inventory management and fulfillment
  • Product labeling
  • Product packaging
  • Product processing and assembling
  • Protection and risk-bearing for products that go in and out of the warehouse

Finally, consider how professional the warehousing solution staff is with handling your products. The staff must be knowledgeable of all your special handling, packaging and storing, and safety requirements. Ultimately, you must get the best essential services like storing, shipping, and packing in a way that you feel secure about your products.

Efficient Product Fulfillment

Lastly, do you need a warehouse provider for the fulfillment of your products? Inquire about the logistics and fulfillment services that the warehouse provides and consider how it can help your business.

A warehouse that provides fulfillment services must use an efficient warehouse management system. If you are using a long-term contract warehouse, inventory control is critical. Ask your warehouse solution provider to give you precise and frequent information related to the inventory. This will help you keep your suppliers updated about when you require more inventory.

In the end, it is imperative to consider all pointers to choose the best warehousing solution for your business. A smaller effort from your side could save you bigger costs and help you manage your inventory efficiently. Many business owners these days are outsourcing their warehousing and fulfillment needs. It helps them manage all their day-to-day requirements and goals efficiently. Besides, warehousing also plays an essential part in eCommerce fulfillment and helps keep your customer satisfied and happy.

Shiprocket Fulfillment
Nov 12, 2020 by Rashi Sood

5 min read

Understanding the Difference between Periodic and Perpetual Inventory

November 12, 2020 by Srishti Arora - 5 min read

When we talk about eCommerce, your inventory is your biggest asset. It defines your business, and how well you can deliver to your customers. And inventory is one of the most critical aspects of any fulfillment supply chain. If not tackled properly, it can soon turn into a liability that can be very difficult to get rid of. Therefore, you need to have systems in place to keep check of your inventory and track its purchase and sale. The key to having a successful inventory management system is balance. But the question is how can you attain it?

Most eCommerce sellers do not track their inventory regularly. This often leads to the accumulation of more than the required inventory or the unfortunate cases of stockouts. Either of these situations can be harmful to your eCommerce business

Here are two forms of inventory systems – periodic and perpetual inventory, that can prove to be successful in tracking your eCommerce inventory. Let’s have a look at what they are, the differences between them, and how they can be useful for your business. 

What is the Periodic Inventory System?

When you count, track, record, and value inventory at specific time intervals, it is known as a periodic inventory system. The inventory valuation process helps determine the cost of goods sold or COGS.

It is generally used to maintain a separate account for delivery costs and inventory account. So basically it is the valuation of inventory at specific time intervals which are known as accounting periods.

Here, the cost of goods sold refers to the direct costs that a company incurs while selling goods. This could include raw materials or manufacturing costs.

What is the Perpetual Inventory System?

The perpetual inventory system is the opposite of the periodic inventory system where inventory management is carried out in real-time through the use of an inventory management system that automates the process. Therefore, in a perpetual inventory system, the changes will be recorded with every transaction that takes place on your eCommerce website.

Difference Between Periodic Inventory System and Perpetual Inventory System?

The first major difference between periodic and perpetual inventory management is the time interval at which the inventory tracking and valuation are done. In periodic inventory, it is done after specific accounting intervals and in perpetual inventory, it is done in real-time. 

In the periodic inventory system, inventory data is kept up-to-date using physical counting of inventory and further estimating the COGS using different inventory valuation methods. Whereas in perpetual inventory management, inventory is tracked in real-time and inventory data is centralized.

The Relevance of a Periodic Inventory System

Periodic inventory systems are useful for businesses that are just starting out and do not require a large use of inventory. Small-scale businesses can account for physical inventory and keep track of it with different inventory valuation methods. You can eventually switch to a more advanced system but starting out with a periodic inventory system works well as you do not require to invest a lot into it. 

The periodic inventory system is useful for grocery stores as they have a very large inventory of small products so they can make minor adjustments in their stock over time and also record it physically.

Similarly, in convenience stores and clothing stores, you can run on the same principle and record and evaluate inventory over a specific time interval. 

The Relevance of a Perpetual Inventory System

A perpetual inventory system gives eCommerce businesses a more accurate overview of the stock levels and eliminates the manual processes involved in maintaining an inventory management system. This form of stock management is more accurate and works on real-time data. Therefore, eCommerce businesses can get information much faster about stockouts, low inventory, excess inventory, etc.. It also helps up in freeing time and capital. However, since it works on a centralized inventory management system, it is slightly more expensive than the periodic inventory management system.

The perpetual inventory management system is most suitable for businesses that work on a variety of products and with a very large inventory. Since it gets difficult to maintain product count on a long-term basis, the perpetual inventory management system can be suitable for managing inventory across channels and in real-time. Also, with large stock levels, inventory management systems can eventually lead to a decrease in inventory management costs and you can forecast inventory levels more efficiently. 

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Order Fulfillment & Inventory Management

Inventory management can be a tedious task for businesses. With a constant influx of inventory and sales, it can get difficult to evaluate and assess inventory on a regular basis. However, this task can be simplified if you outsource your fulfillment operations to a 3PL provider like Shiprocket Fulfillment. 

Shiprocket Fulfillment works with the best inventory management system to provide you with a completely automated inventory management and warehousing workflow. Once you send your inventory to the Shiprocket Fulfillment warehouses, you can be least bothered about how your inventory is going to be managed. 

But Shiprocket Fulfillment warehouses, you can easily store all your inventory across India and get real-time updates about your stock levels. Eliminate all manual work and rely on 3PL providers for complete inventory management services. This way, you can save ample capital & resources while growing your business. 


Both the periodic and perpetual inventory management systems have their own benefits. However, the perpetual inventory management system is more advanced as it is developed to give you information quicker. Depending upon your business needs, you can select the most suitable inventory management system for your business.

Shiprocket Fulfillment - Top fulfillment provider in India
Nov 12, 2020 by Srishti Arora