Shipping delays can be frustrating for both businesses and customers. While some delays may be inevitable due to global events or unforeseen circumstances, several common shipping problems can be mitigated.

In 2021, an estimated 7% of all ecommerce orders suffered shipping delays, as reported by Narvar. Without Covid restrictions affecting the logistics industry, people still complain about late deliveries.

It is not due to a single factor but rather the combination of multiple issues contributing to delays.

As a customer, you also find it annoying when shipments arrive late or don’t show up. But you are not alone.

It happens to millions of orders every day. But what causes shipping delays? This blog will discuss some of the most common shipping problems in 2023 and how businesses can address them.

An Overview from 2020-2022: What in General Affected Shipping?

Unsurprisingly, the global pandemic has greatly impacted shipping in the past three years. While some countries could keep up with the demand for online shopping, others experienced extreme delays due to tightened logistics restrictions or supply chain issues.

In 2020 and 2021, many orders were delayed due to Covid-19-related restrictions, and customers faced longer shipping times. As logistics providers adjusted to the pandemic, customer service teams had to adjust their customer journey plans.

A lack of staff availability due to higher demand and/or illness resulted in warehouse backlogs worldwide. These issues compounded each other, resulting in significantly longer shipping times than normal.

Soon after, when we were going to have a normal world after a deadly Pandemic, Global Recession was waiting for us. Although we’re not officially into recession, several popular economists have said we’re facing a recession in 2023.

This has caused another wave of shipping delays, as companies had to adjust their processes and supply chain networks for the new economy.

As we are going towards the end of our 2023’s Q1, let’s look into the common shipping issues in 2023 and how to address them.

Top 11 Common Shipping Problems in 2023

Now that we have briefly discussed the causes of shipping delays let’s take a closer look at some of the most common shipping problems in 2023.

Global Emergencies

Global emergencies are one of the main reasons for shipping delays. This can include natural disasters such as floods, hurricanes, earthquakes, etc.

In 2020 and 2021, the major global emergency was the Covid-19 pandemic. Although vaccines are being rolled out, the virus is still a major concern for shippers, especially in regions with fewer restrictions.

The major war on the Russian-Ukrainian border also has been a cause of disruption to the global shipping network.

The latest Earth Quack that hit Turkey, Syria, and Libya has also disrupted the shipping industry. All these things are adding up to global shipping delays.

Supply Chain Disruptions

Nowadays, businesses are trying to manage their supply chains. But due to the recession, many companies are facing serious disruptions in their supply chain networks.

This is causing customer delays as shippers find it difficult to keep up with the demand.

It’s also a problem for businesses that depend on third-party logistics providers. Many of these providers are facing backlogs due to a lack of resources, resulting in delays. Even the E-commerce Giant-like Amazon is facing supply chain disruptions due to several factors like-unavailability of raw materials, higher shipping costs, and so on.

Manpower Shortages

The global pandemic and economic downturn have caused an acute shortage of manpower in the logistics industry. This leads to long wait times for shipments as companies struggle to keep up with rising demand while maintaining social distancing protocols.

In some cases, companies have had to reduce their workforce or close down temporary warehousing facilities due to a lack of staff.

The tech industry has seen a wave of layoffs in the past two years, with over 66,000 layoffs have been observed in the U.S. in 2023 alone.

This is on top of the 159,786 jobs that were cut by tech firms last year. Companies such as Yahoo, Disney, Zoom, Dell, PayPal, and others have all announced major layoffs this month. This has led to an increase in the average shipping time for online orders.

Weather Anomalies

Weather anomalies are also a major factor in shipping delays. In 2020, various parts of the world experienced extreme weather events that resulted in long transit times for goods and services.

For instance, in the UK, strong winds caused by Storm Dennis led to flight cancellations and delayed shipments from logistics companies. This caused a backlog in the delivery system and lengthy customer wait times.

In 2021, the extreme cold weather in the U.S., Europe, and some parts of Asia also caused delays due to icy roads and frozen harbors.

Incorrect Labels/Packaging

Incorrect labels or packaging can also cause shipping delays. This is especially true for companies that rely on automated systems to label and package their goods. If the labels are wrong, the company will need extra time to fix them before they can be shipped.

Delayed Handling Processes

The handling process can also be a major cause of shipping delays. This is especially true for companies that outsource their handling processes, such as the warehousing and distribution of goods.

These companies need to ensure that their third-party logistics provider can handle the shipment with efficiency and accuracy. Otherwise, it could result in long wait times for customers.

National and International Holidays

Nobody has control over national and international holidays. These days can cause delays in the shipping process, as companies and warehouses often take a break on these days.

Customers may have to wait longer than usual for their orders to be shipped out during such periods.

If long distances are involved, customers may need to wait even longer due to increased transit times.

Customs Inspections

Customs inspections are especially true for international shipments, which require the goods to be cleared by customs before they can be delivered.

Inspection delays can add several days or weeks to the delivery time, resulting in frustrated customers.

The Impact of Shipping Issues (On Everyone)

Shipping delays can have a major impact on businesses, customers, and logistics companies alike. Recent studies have shown that nearly 55% of online shoppers abandon their orders when faced with a long delivery wait time or shipping fee. This has led to an estimated loss of over $6 billion in potential sales for e-commerce businesses since 2020.

How Do Delays Frustrate Customers?

Shipping delays can significantly impact customer satisfaction and loyalty. Customers may become frustrated if they must wait an unusually long time for their orders, and a lack of transparency on the part of the logistics company only adds to this frustration.

Sometimes, customers may cancel their orders if delivery times are too long or updates about their order status are not provided. This can result in significant losses for businesses and logistics companies alike.

How Shipping Issues Damage Retailers?

Shipping issues can be a major problem for retailers, leading to lost sales and customer dissatisfaction.

According to a recent study, 21% of large online purchases arrive damaged, while 15% never arrive. This can lead to costly returns, refunds, and unhappy customers who may not shop with the retailer again.

How To Address The Shipping Delays in 2023?

Shipping delays are an unavoidable reality in the world of ecommerce. However, by being proactive and prepared, merchants can effectively mitigate the impact of shipping delays on their businesses.

Anticipating potential delays, developing a strategy to deal with them, and creating contingency plans for unexpected disruptions are all important steps to take.

Fortunately, there are a variety of effective strategies that merchants can implement to address shipping delays and keep their customers satisfied.

Free Shipping = Happy Customer

One effective strategy is to offer free shipping where possible. A recent survey found that customers overwhelmingly prefer free shipping over faster shipping, with 83% of respondents indicating that they would choose the former. By offering free shipping, merchants can insulate their customers from the impact of shipping delays and maintain their trust.

Communication is The Most Important Thing

Communication is also essential when it comes to addressing shipping delays. Keeping an open line of communication with suppliers and customers can help mitigate the impact of shipping issues and mistakes. By staying in touch with suppliers, merchants can anticipate potential delays and arrange alternative suppliers or backup inventory.

Additionally, regularly communicating with customers and providing attentive customer support can help minimize their disappointment and keep them happy in the face of unexpected challenges.

You Don’t Live in the Middle Ages; Provide Shipment Trackers

Give customers visibility into their shipment status with a tracker. Ecommerce order tracking can even help build trust in your brand by providing estimated ship dates and ETAs if shipments are delayed. It’s an effective way to provide peace of mind and improve the customer experience.

Local Pickup Is the Quickest Solution

Offering local pick-up options is another great way to address shipping delays. By allowing customers to pick up their package in person rather than waiting for it to be delivered, merchants can help ease customer frustrations and maintain their satisfaction.

Check, and Balance is Necessary Everywhere

Finally, regularly monitoring the entire supply chain is essential for avoiding shipping delays. By tracking every phase of the supply chain, merchants can anticipate potential problems and take proactive steps to mitigate them.

This can include identifying potential disruptions ahead of time and seeking out backup suppliers or reordering inventory to prevent backorders.

Facing Fulfillment Issues? Contact ShipBob Today!

Experiencing shipping delays? ShipBob is here to help. With our latest software and dashboard, you can track inventory and orders in real time.

Plus, we offer a 2-Day Express program and discounted rates on multiple carriers for fast and affordable shipping. Contact us today to learn more about their services!

FAQs Related to Shipping Delays

What Shipping Delays Can We Expect In The Coming Year?

Various weather, holidays, labor shortages, supply chain issues, and more can cause shipping delays in the coming year.

Is There Currently A Shipping Crisis, And If So, Why?

The short answer is yes; there is currently a shipping crisis. This crisis has been caused by a combination of factors, including the pandemic-induced disruption to global supply chains, a shortage of crew and containers, and increased demand for goods.

What Are The Busiest Ports In The World?

The busiest ports in the world are Shanghai, Singapore, Shenzhen, Ningbo-Zhoushan, and Hong Kong. These ports account for nearly a third of all global container traffic.

Why Are Shipping Costs So High?

Shipping costs are high due to the increased demand for goods and services, a shortage of containers, and rising fuel prices. Additionally, some carriers have implemented surcharges during peak periods to manage capacity.

When it comes to the business world and creating, purchasing, and shipping products, understanding the difference between SKU, UPC, and barcode is essential. Despite these terms often being used interchangeably or incorrectly, there are distinct differences between each that can have serious consequences if gone unnoticed.

This blog post will guide you on the basic differences between these terms and how to use them in your business.

What is an SKU?

If you’re a business owner, chances are you’ve heard of SKUs. But do you know what they are and how they can help your business?

An SKU, a “stock-keeping unit,” is a unique combination of numbers or letters identifying a specific product or variation.

It tracks inventory levels, pricing information, and other details about products and services. A good way to think of SKUs is as product identifiers, i.e., they help identify each item in your store so that you can accurately track inventory levels and pricing.

How Do Retailers & E-commerce Sellers Use SKUs?

Retailers and e-commerce sellers use SKUs to keep track of their products. By assigning each item a unique number or code, retailers can easily organize their inventory. They easily manage their stock levels for both online sales and in-store purchases.

Many retailers also use SKUs to manage pricing information for different variations of the same product; this helps them quickly adjust prices when needed without manually changing each product listing.

Finally, some retailers may even use customized SKUs to include additional information such as attributes (e.g., size or color). This makes it easier for customers to quickly find the exact item they’re looking for without having to search through multiple listings on the website or in-store shelves.

What is a Barcode?

A barcode is a visual, machine-readable code used to represent data in various industries. They identify and track products, items, and information quickly and efficiently.

Barcodes are widely used in the retail supply chain, healthcare, manufacturing, logistics, and other industries to improve productivity, reduce errors, and increase accuracy.

Different Formats of Barcodes

Barcodes can come in different formats and symbologies depending on their intended use. There are many types of barcodes, and here we are going to discuss some of these.

1D or Linear barcodes

One-dimensional (1D) barcodes, also known as linear barcodes, are the most common type of barcode. They consist of a series of parallel lines and spaces that encode information in varying widths and spacing. These barcodes can be further categorized as one-dimensional numeric and one-dimensional alpha-numeric.

1D Numeric

One-dimensional numeric barcodes, also known as linear barcodes, are a type of barcode that use a series of numbers to represent product information.

They are the most common type of barcode used on most consumer goods and are typically seen as a series of vertical lines of varying widths with numbers displayed beneath them.

The most well-known example of a 1D numeric barcode is the Universal Product Code (UPC), which is used to identify products for sale in retail stores in North America.

Aplha-Numeric 1D Barcodes

One-dimensional alpha-numeric barcodes combine numbers, letters, and other characters to encode information. These barcodes are used in various industries, including the automotive and defense industries, as they can encode more information than one-dimensional numeric barcodes.

2D Barcodes

On the other hand, two-dimensional (2D) barcodes are more complex and can store more data than one-dimensional barcodes.

These barcodes are made up of squares or rectangles containing dots, which represent data in binary format. 2D barcodes do not contain visible letters or numbers and can encode thousands of characters.

The most commonly recognized 2D barcode is the Quick Response (QR) code, commonly used for mobile payments and advertising.

Barcodes Used in Different Industries

Barcodes are used in various industries to help with product identification and tracking. Different types of barcodes are used in different industries depending on each industry’s specific needs and requirements. Here are some examples of the different barcodes used in different industries

Barcodes Used in E-commerce and Retail

In the e-commerce and retail industries, barcodes are used for product identification and tracking.

The most common type of barcode used in this industry is the linear, one-dimensional (1D) numeric barcode.

The UPC (Universal Product Code) is the most well-known example of a 1D numeric barcode.

Shipping Barcodes

Shipping barcodes are used in the logistics and transportation industry to track packages moving from one location to another.

The most common type of barcode used for shipping is the linear, one-dimensional (1D) numeric barcode.

These barcodes are typically used by shipping carriers such as UPS, FedEx, and USPS to convey information such as the package’s origin, a destination address, weight, and shipping carrier. When the barcode is scanned, the information encoded in the barcode is quickly retrieved and processed, allowing for fast and accurate package tracking.

Barcodes Used in Healthcare Systems

Barcodes are also used in healthcare systems to help with patient identification and medication tracking. The most common type of barcode used in healthcare is the two-dimensional (2D) barcode.

These barcodes are typically seen on patient wristbands, medication packaging, and medical equipment and are used to identify patients and track medication administration.

Manufacturing and Logistics Barcodes

Barcodes are used in manufacturing and logistics to track inventory levels and improve supply chain efficiency.

The most common type of barcode used in this industry is the linear, one-dimensional (1D) numeric barcode.

These barcodes identify and track products and components as they move through the manufacturing and supply chain process.

Manufacturers and logistics providers can use barcodes to improve inventory tracking and management, reduce errors, and improve productivity.

What Is a UPC?

UPCs are used by retailers and marketplaces to identify, track, and authenticate products. But what exactly is a UPC barcode, how is it used, and how can brands get one?

A universal product code (UPC) is a type of barcode symbology that uses a 12-digit code to identify a product uniquely.

Major retailers like Walmart or Amazon use it to verify product authenticity and help them manage inventory efficiently.

In addition, many marketplaces require sellers to provide UPCs for their products to be listed on the platform. This helps avoid unnecessary duplicates in their catalogs.

How Is It Different from SKUs?

SKUs (stock-keeping units) are often confused with UPCs, but they are two different things.

SKUs are created by brands or sellers for internal use only, such as tracking inventory or organizing products within their system.

On the other hand, UPCs are intended for external use; they are assigned by organizations such as GS1 US and then printed on the actual products themselves so they can be identified by retailers and verified for authenticity.

How Can Brands Get One?

Brands looking to obtain GTINs (Global Trade Item Numbers) must purchase them from organizations like GS1 US to create unique 12-digit codes that can be turned into UPC barcodes.

These codes cost anywhere from $50-$550 depending on the type of plan selected and the number of codes purchased.

Once obtained, brands need to generate their barcodes with the appropriate software or through an online generator service to print them onto their products’ packaging or labels.

Which Codes Should Your E-commerce Business Use?

The decision on which codes to use in e-commerce depends on the size and growth of the business and the requirements of 3PLs, retailers, and marketplaces.

Smaller e-commerce brands may use only SKUs, while larger businesses may use self-generated barcodes or registered UPCs.

SKUs are unique codes used for internal tracking, while barcodes are machine-readable symbols used for external tracking.

UPCs are unique identification numbers used in registered barcodes to ensure universal compatibility with scanning machines.

E-commerce businesses should choose the codes that best suit their needs and meet the requirements of their partners, enabling them to track inventory, improve productivity, and streamline operations.

We Do SKUs, UPCs, and Barcodes

ShipMonk is the perfect partner for businesses looking to manage their SKUs, UPCs, and barcodes. Our experienced team can generate barcodes for necessary products to ensure reliability throughout the ecommerce order fulfillment process.

Leveraging our expertise in barcode technology, we streamline the returns process as well – decreasing time and money spent. Contact ShipMonk today to decode your SKUs, UPCs, and barcodes!

Running an online business can be complex and challenging at times, shipping being one of the most important yet complicated aspects. Not only do you have to consider the costs and logistics of sending out orders to your customers, but you also have to make sure that those orders are accompanied by the right paperwork. Otherwise, you could end up with serious delays or even the dreaded “Package Stuck in Customs” notification for international shipments.

International shipping laws and regulations in different countries may vary. As such, the documents needed for import or export may also vary. In most cases, you’d need the following documents for international shipping.

1. Proforma invoice

A proforma invoice is a type of estimated invoice or a preliminary bill that is sent to international prospects. Basically, it’s like a quote that you send before the actual purchase. It enables them to arrange the necessary finances and documentation such as import licenses.

The following details must be included in a proforma invoice:

• Information on the buyer and seller
• A detailed description of the items
• Item value
• Harmonized System (HS) codes for the items
• Payment terms
• Delivery details
• Currency used
• Date and expiration date

2. Commercial invoice

The commercial invoice is the proof of sale that must accompany all international shipments. It can be similar to your proforma invoice but may contain additional details such as the order number and PO number.

Commercial invoices are very similar to standard invoices but must include other details that will help with customs clearance. This includes details such as:

• Detailed information on the buyer and seller
• Information on the freight forwarder
• Banking and payment information
• Shipping line
• Item description
• Quantity
• Country of origin
• HS code
• Item value
• Total weight
• Shipment terms

3. Export packing list

An export packing list contains an itemized list of all the goods included in a shipment along with important details about each item. This document may be used for issuing other important documents such as a bill of landing and a letter of credit. In international shipments, the packing list is essential for the shipment to clear customs. It can also be used if any dispute arises between the shipper and the carrier.

The export packing list will include key information such as:

• Order date, shipping address, and contact info
• Itemized list of shipped items
• Itemized list of items that were out-of-stock
• Quantity of each item
• SKU or UPC numbers
• PO number or slip number
• Dimensions and weight
• Packaging type
• Safety measure

4. Certificates of origin

Most international shipments require a certificate of origin to declare where the items originated from. They must be provided in accordance with the rules and regulations of the importing country and certified by the export country’s consulate office or the chamber of commerce.

Certificates of origin must include the following details:

• Name and address of the shipper
• Name and address of the buyer
• Exporting carrier
• Country of manufacture
• Number of packages
• Date of export
• Item description
• Quantity/unit of measure
• Weight
• Signature from the authorized personnel

5. Certificate of free sale

Also called a certificate of export, this document serves as evidence that the item being shipped is sold or distributed legally in the open market and that there are no restrictions on them in the country of origin. A certificate of free sale indicates that the item has been approved by relevant regulatory authorities and is eligible for export.

This document is typically needed for certain types of products such as cosmetics, food items, medical devices, and biologics.

6. Shipper’s letter of instruction

This document contains specific instructions to successfully transport international shipments. Usually provided to freight forwarders, this document will include details like:

• Name and contact information of the shipper/exporter
• Name and contact information of the freight forwarder
• Details about the items being shipped
• Item weight and dimensions
• Type of packaging
• Special handling requirements
• Exporting restrictions (if any)
• Type of freight
• Insurance information
• Documents included in the shipment
• Special instructions to carrier or freight forwarder

7. Inland bill of landing

The inland bill of landing is a contract of carriage that’s consigned to the shipping carrier rather than the buyer for the transportation of goods via road, railway, or inland water. It states where the goods are being transported and serves as evidence that the goods have been picked up. The inland bill of landing may include details such as:

• Item description
• Item value
• Origin country
• Destination
• Transportation terms

8. Ocean bill of landing

As the name suggests, this document is required for shipments made across international waters. It serves as a contract between the exporter or seller and the shipping carrier, ensuring that the buyer receives the product, and the seller gets paid. The ocean bill of landing may include details such as:

• Item description
• Item quantity
• Shipment commercial value
• Destination
• Routing instructions
• Type of packaging

9. Air waybill

This is a contract of carriage for goods shipped by plane, indicating an agreement between the seller and the carrier. It’s non-negotiable and serves as a receipt of goods for the airline carrier once the goods arrive at the destination airport.

An air waybill typically includes the following information:

• Name, address, and account number of the shipper
• Name, address, and account number of the consignee
• Air waybill number
• Airport of departure
• Airport of destination
• Flight date
• Declared value
• Item details
• Charges due to agent/carrier

10. Letter of credit

This is a popular means of payment for international transactions. It’s formal and binding, making it irrevocable by default. It’s a promise of payment to the seller by the bank on behalf of the importer or seller.

When you choose ShipJoys’s fulfillment service, the team handles the entire fulfillment process for you. You can send your inventory to ShipJoy, where it’ll be stored until an order comes in. The fulfillment team will pick and pack the orders and get them ready for shipment, which means ensuring that all the necessary shipping documents are included.

Shipping is one of the most important yet complicated aspects of running an online business. Not only do you have to consider the costs and logistics of sending out orders to your customers, but you also have to make sure that those orders are accompanied by the right paperwork. Otherwise, you could end up with serious delays or even the dreaded “Package Stuck in Customs” notification for international shipments.

The best way to avoid major shipping issues is to make sure that your packages go out with all the necessary documents. So what documents do you need to include? That’s exactly what you’ll find out in this guide.

Read on to learn all about the most common shipping documents for domestic shipping.

Importance Of Shipping Documents

Shipping documents, as the name suggests, are the documents necessary to transport an item from one location to another. They’re made up of applicable records, forms, and certificates that provide information about the item being shipped. This may include details such as the item description and specification, quantity, price, ship date, delivery address, and shipping method.

The exact documents required may vary depending on factors such as the shipping method, delivery destination, and type of goods. However, most packages will require waybills, commercial invoices, packing lists, and certificates of origin.

As these documents provide information about the goods being shipped, they help ensure that packages are delivered on time and to the right addresses. They help courier services determine how to route the package and deliver them in the most efficient manner.

Moreover, these documents are also necessary in international shipments to ensure that the package is in compliance with the import regulations of the countries through which it is routed. Ensuring all the necessary documents are included with the correct information will streamline the customs clearance process and allow for speedy international deliveries.

Common Shipping Documents For Domestic Shipping

Domestic shipping is a little less complicated than international shipping. You’ll typically require the following three shipping documents.

1. Bill Of Landing

Bill of landing ,or BOL, is a transportation contract between the transportation company or carrier and the business that’s sending out the package. It helps to confirm the receipt of goods that need to be shipped and it needs to be signed by an authorized representative from the carrier’s end.

Typically, a BOL must include the following details:

• Where it’s shipped from
• Destination
• BOL number
• Details of the carrier/transportation company
• Transportation mode
• Description of goods being shipped
• Shipment terms

2. Packing list

A packing list or a packing slip contains an itemized list of all the goods included in a shipment. This helps to ensure that everything’s included in the shipment, confirm that all the items were received, and identify any damaged items.

It includes details such as:

• Order date, shipping address, and contact info
• Itemized list of shipped items
• Itemized list of items that were out-of-stock
• Quantity of each item
• SKU or UPC numbers
• PO number or slip number

3. Commercial invoice

A commercial invoice serves as a proof of purchase and includes all the details of the sales transaction between the seller and the customer. It will include details such as:

• Invoice number
• Customer name, address, and contact info
• Seller name, address, and contact info
• Item description and quantity
• Item value
• Item weight
• Shipment terms

ShipJoy can  help you manage shipping dangerous goods domestically. You can mark the item as “Dangerous Goods” so ShipJoy can take appropriate measures when managing the order.

If you’re ready to get started with ShipJoy, request a quote to connect with our team.

Customer expectations around the speed and cost of shipping fulfillment are constantly changing as large retailers such as Amazon Prime and Walmart, just to name a few, have started to offer free 2-day shipping.

As consumers, when we want something, we want it now.

As sellers, fulfilling those demands is easier said than done.

Most people don’t realize just how much of an impact the order fulfillment process has on the bottom line of an ecommerce business. While it may not be the most glamorous function, it can make or break a company. It’s never been more important to get ecommerce order fulfillment right.

For instance:

• 61% of shoppers will abandon their cart if shipping, taxes, and other fees are too high.
• 53% of shoppers say that speed of delivery is an important factor when it comes to evaluating their online orders.
• 38% of shoppers will never shop with a retailer again if they had a poor delivery experience.
• 25% of shoppers have canceled an order because of slow delivery speeds.

Getting ecommerce order fulfillment right has never been more important

With some help, getting ecommerce order fulfillment right has never been easier. The best place to start is understanding how it all works.

The Order Fulfillment Process

Whether your eCommerce fulfillment process is done in-house or taken out of house, the process remains focused on storing inventory, picking & packing products, and shipping online orders to the customer. Third-party logistics (3PL) companies exist to help you get the process done right and reduce your shipping costs at the same time. Outsourcing your order fulfillment process will allow you to spend time on what really matters, running your business and acquiring more customers.

Ecommerce order fulfillment applies to both business-to-business (B2B) orders — where large quantities of product are shipped to big-box retailers — as well as business-to-consumer (B2C) orders that are shipped directly to a single shopper’s home.

For B2C orders, the end consumer may place the order on the merchant’s website or through an online marketplace.

After the customer completes their purchase, the fulfillment process begins.

Step-By-Step

If you are new to the fulfillment world, you may not have put much thought into how an online order ends up at your doorstep.

There are many moving pieces — from routing and managing inventory to choosing the correct packaging for the lowest practical dimensional weight — that make up the entire fulfillment process.

Each step of the fulfillment workflow has its nuance, including receiving inventory, warehousing products, picking and packing items, and shipping orders.

1. Receiving
Before you can fulfill orders from your online sales channels, you need inventory.

If you choose to fulfill orders in-house, your inventory must be on-hand.

If you are outsourcing fulfillment, inventory must be sent to the provider that will fulfill on your behalf.

2. Inventory storage
Inventory storage, also known as warehousing, is the organization and storage of your products.

Each unique product or SKU must have a separate dedicated storage location.

For larger operations, this will be on a shelf, in a bin, or on a pallet.

Proper inventory storage will keep your products secure and protected and help give you visibility into what is available to ship to your customers.

3. Order processing
Once an order has been submitted, it will get processed.

These steps involve picking, or the retrieval of items from where they are stored, and packing, or getting the order ready to ship.

Often a packing slip is used, which notes the quantities and storage locations of each product ordered.

This may also include instructions on which packing materials to use — boxes, bubble mailers, poly bags, packing tape, bubble wrap, airfill, etc. — or any custom packaging and inserts to create the intended unboxing experience for the end customer.

Finally, a shipping label must be added to the package.

4. Shipping
Once the order has been processed and is ready to send, the merchant must get it shipped.

This may involve a run to the local post office or UPS Store, or having a carrier pick up the orders from the fulfillment location.

Once the order ships, you should receive tracking info that can be shared with customers to keep them up-to-date with their deliveries.

5. Returns processing
If a customer returns an order, you must be prepared to process it.

They may ship it directly back to you or the fulfillment provider where it will be evaluated.

Depending on the item quality, return reason, and your returns policy, the product can either be restocked as available inventory or disposed of due to malfunction.

CONTACT SHIPJOY TODAY

If you need help with your order fulfillment, don’t hesitate to contact us at ShipJoy. We have the experience, dedication, and knowledge you need to ensure your packages get where they need to go and your customers return time and again.

If your company ships products nationally, you know the fulfillment environment has never been more demanding. Customers’ expectations for rapid delivery have risen to never-before-seen levels, and their impatience and frustration when you fall short of those expectations can send them looking at your competitors with fresh eyes. Those expectations heighten the need to have national fulfillment services that are both fast and efficient.

For many shippers, national fulfillment services no longer simply means providing delivery of orders throughout the country. It now means fulfilling orders at the same reliable speed no matter where in the US a customer is located. Figuring out how to provide that level of service means examining your processes and resources closely and considering opportunities to up your fulfillment game.

Here are key questions to ask when determining the distribution infrastructure required to provide national fulfillment services.

The Need For Speed

The first question to consider is how important fulfillment delivery speed is to your brand’s online sales. Amazon has created a new normal of two-day, one-day and even same-day delivery. If buyers can get your product easily from other brands, then you need to at least meet their delivery time standards. That may require more than one warehouse across the country. If your brand is unique or carries some cachet with buyers, then delivery speed may be less of an imperative since they can’t get that anywhere else.

More Than One Fulfillment Center

A recent ice storm in Dallas made it dangerous for many workers to come into the warehouse there. It so happened that, on this day, two large customers had significant, planned volume spikes. Having additional fulfillment centers to divert orders to may be the difference between you and your competition.

That’s just one example. Different weather events, fire, a COVID outbreak or other disruptions can bring fulfillment operations to a complete halt if you rely on one warehouse for nationwide fulfillment. Only you know the short-term and long-term implications for your business if you were unable to fulfill orders for a day or even a week.

When To Expand

When you expand to more than one fulfillment center, it adds complexity. For brands that are still gaining traction in the market, expanding too soon may not be wise. You need to learn some things about your business so that you begin to see patterns in your customers’ demand.

Which regions of the country generate which kinds of orders?
Which SKUs move the fastest?

How do order volumes rise and fall throughout the year?
Once you have this solid foundation and your current operation starts straining at the seams, that’s a good time to consider geographic expansion.

What Can You Afford?

In theory, national fulfillment services are possible with a single facility. But unless you want to spend a fortune for expedited delivery, the customers who live farthest from that facility will wait longer to receive their goods. And that might be OK. But with one fulfillment center, you’ll be paying a lot more for parcel shipping.

Parcel shipping is by far your biggest fulfillment expense. The cost of adding warehouses to your distribution network will increase for the facility, labor, inbound shipping and inventory. But those costs are typically outweighed by the parcel shipping cost reductions associated with putting products closer to customers. With parcels, it’s those high-zone moves that really take a bite out of your wallet.

Getting Started

You’ll still see some eCommerce sellers trying to succeed at national fulfillment with a single-warehouse model. This practice still happens because several years ago, using a single, centralized warehouse was common for many retailers, especially those managing less than 100,000 orders annually. And many of those retailers haven’t evolved with current market conditions. Back then, consumers expected to wait a few extra days for goods they purchased online to arrive from a far-off fulfillment house.

Then, Amazon started to change all that with its two-day shipping model. After that, big omnichannel giants like Walmart and Target changed to keep up with Amazon. Eventually, skyrocketing eCommerce demand during the COVID-19 pandemic put that outdated fulfillment network model to rest. Put simply, nobody wants to wait five days for toilet paper anymore (or hardly anything else they buy online, for that matter).

National eCommerce fulfillment is no longer just about shipping to every state. Instead, it’s about getting your products to every national destination intact and on time, within the same predictable shipping window. Your customers in Florida want their goods just as fast as those in Northern California, and providing that capability has become essential to the overall customer experience. If your national fulfillment services fail to meet and exceed those consumer expectations, you’ll eventually get pushed out of key markets by competitors who didn’t make the same mistakes.

Third Party Logistics Companies – 3PL

The added costs and complications of a multi-warehouse, eCommerce fulfillment networks are less of a burden if you work within a national fulfillment 3PL. A national 3PL could:

Do an distribution network analysis analysis to help you decide the optimal number of warehouses you should have and where they should be

Provide immediate distribution in new regions of the country using an in-place network of fulfillment centers
Reduce your warehouse costs by allowing you to share overhead costs with other companies at a multi-client facility
Reduce your parcel costs by shipping under their discounted parcel shipping rates
Provide the ability to scale your fulfillment operations to support any rate of growth, including the addition of new facilities and the introduction of automation to efficiently manage high-volume fulfillment.
Create customized national fulfillment services that meet your exact needs, allowing the fulfillment partner to act as an extension of your core operation.

Accommodate multiple distribution needs, such as offering eCommerce fulfillment, distribution to your retail partners, marketing material distribution, and more from the same facilities.
Best of all, 3PLs that offer national fulfillment services give you the freedom to focus on growing your business while they serve as your growth guide, providing the fulfillment advice and infrastructure you need.

Contact ShipJoy Today

If you need help with your order fulfillment, don’t hesitate to contact us at ShipJoy. We have the experience, dedication, and knowledge you need to ensure your packages get where they need to go and your customers return time and again.