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<p>All ecommerce businesses are affected by shipping surcharges.Below are examples of common types of surcharge fees and how they may affect your bottom line.</p>
<h2>What Are&nbsp;Surcharges?</h2>
<p>Often referred to as a “service fee” or “handling charge”, surcharges are additional expenses applied on top of already existing shipping fees. Varying from temporary surcharges – such as holiday surcharges applied during peak shipping periods – to permanent fees that range from fuel surcharges to large package surcharges, there is a wide range of additional expenses that shipper’s need to know about. The question is, however, do you?</p>
<p>To help understand the depth and details of these additional expenses, it’s first important to recognize that all carriers have different surcharges. UPS, for example, has different surcharges than FedEx even if many are similar – and both have complex and often overlooked surcharges incorporated into their shipping contracts. Details such as transit time and pickup locations can all influence potential surcharges, with many shipper’s unaware of these fine-print details. As a result, ecommerce businesses often spend much more on their parcel overhead than they need to – despite opportunities that exist for them to avoid surcharges or potentially save money.</p>
<h2>Types of Shipping Surcharges</h2>
<p>To help strengthen your shipping efforts, consider what some of the&nbsp;<a href="https://www.refundretriever.com/blog/accessorial-fee-wars">most common surcharges</a> are – as identified by Refund Retriever based on their data and reporting – and how they may impact your business.</p>
<h3>1. Residential surcharges.</h3>
<p>Residential Surcharges are applied to deliveries made to home addresses and include businesses that operate out of a home. For each residential delivery, an additional charge per shipment may apply.</p>
<h3>2. Delivery area surcharges.</h3>
<p>Delivery Area Surcharges are applied to addresses that are deemed as rural or outside of a specific range from a FedEx or UPS hub. Essentially, this surcharge is applied for the extended distance it requires for the delivery to be made.</p>
<h3>3. Additional handling surcharges.</h3>
<p>Additional Handling Surcharges are flat rate fees applied to packages over 48 inches long.</p>
<h3>4. Direct signature surcharge.</h3>
<p>Direct Signature Surcharge Is a fee applied for the necessary task of receiving a signature upon delivery of a package.</p>
<h3>5. Declared value surcharges.</h3>
<p>Declared Value Surcharges are offered to give shippers more peace of mind on packages worth $100 or more. This surcharge allows shippers to identify the value of the package in case something should happen – whether it be lost, damaged or stolen – and helps protect their shipping investment.</p>
<h3>6. OS extra surcharge.</h3>
<p>OS Extra Surcharge defines “other shipping” surcharges and varies widely from freight fees to international fees and more. The best way to monitor potential OS surcharges – and all surcharges – is to have an auditing system in place that alerts you to any fees inaccurately charged to your account.</p>
<h3>7. Indirect signature surcharges.</h3>
<p>Indirect Signature Surcharges require signature although they do not require the signature of the person whom the package is being sent to. This is typically less expensive than direct and adult signature requirements and rates.</p>
<h3>8. Weekly service surcharges.</h3>
<p>Weekly Service Surcharges are surcharges that vary every two weeks based on the fluctuation of fuel charges and adjust according to the fuel rates of each two weeks prior.</p>
<h3>9. Print return label surcharges.</h3>
<p>Print Return Label Surcharges are applied only if shippers used a return label provided to them.</p>
<h3>10. Adult signature required surcharge.</h3>
<p>Adult Signature Required Surcharge is a fee added to deliveries that will only allow for adults 21 and older to sign for the package/s being delivered.</p>
<h3>Things To Remember About Shipping Surcharges</h3>
<p>While the above surcharges may not influence all of your shipments, when they do&hellip; they add up. Unfortunately, however, there is no clear way to quantify and segregate the surcharges with various carriers – however through reports generated from parcel auditing companies such as Refund Retriever, shippers can gain more clarity to their shipping overhead while also gaining more confidence in their shipping efforts.</p>
<p>All ecommerce businesses are affected by shipping surcharges.Below are examples of common types of surcharge fees and how they may affect your bottom line.</p>
<h2>Conclusion</h2>
<p>Finally, as you aim to understand surcharges also aim to gain full transparency in your shipping expenses, as well. The best way to do this is to incorporate a parcel auditing strategy into your shipment monitoring – allowing you to easily capture parcel errors, inaccurate shipping expenses made and other key data details that can ultimately help you save money on your parcel overhead.</p>
<h3>Our Expert</h3>
<p>Brian Gibbs, President of Refund Retriever. Gibbs founded Refund Retriever in 2006 while running his first eBay-based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he then graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur and other publications discussing parcel auditing, shipping, ecommerce and more. Learn more about <a href="https://www.refundretriever.com/" target="_blank">Refund Retriever</a>. </p>

Product and Inventory Management

Understanding Shipping Surcharges

<p>Barcodes are the star of commerce. They’re on our groceries, our Amazon packages, and even on some vehicles. These small black bars have become the universal symbol of a purchasable product.</p>
<p>Even beyond the world of commerce, we wear barcodes on our wrists during hospital stays, and some barcodes can contain embedded website hyperlinks.
</p>
<p>So why are they so widespread? What advantages does a barcode scanning system afford businesses?&nbsp;
</p>
<p>Let’s start with the basics.
</p>
<h2>What Are Barcodes?
</h2>
<p><a href="https://www.skuvault.com/blog/master-the-basics-of-barcode-inventory-management-and-how-to-implement-your-system/" target="_blank">Barcodes</a> are machine-readable codes represented visually as numbers and parallel lines. When scanned by the laser beam of a barcode scanner, these symbols produce a unique digital code.
</p>
<p>Barcodes are affixed to and associated with products to identify and distinguish them.
</p>
<p>Barcodes are used in POS systems, warehouses, inventory management systems, or any other database that necessitates inventory data collection and storage.
</p>
<h2>Why Do Businesses Use Barcoding Systems?
</h2>
<p>Believe it or not, barcodes were invented in 1951 but weren’t commercially successful until the 70s. You’d be hard-pressed to find another technology developed in the 50s that we still rely on today.
</p>
<p>Barcodes offer many significant benefits to businesses, which is why this 70-year old technology hasn’t changed much.
</p>
<h3>1. Barcodes are a proven and universal technology.</h3>
<p>The benefits of the barcode’s longevity in commerce are twofold. Firstly, barcode scanning has had ample time to prove itself as an effective means of commerce identification. Secondly, these little striped squares have been so universally adopted in our modern world that there are countless inexpensive ways for any business to enjoy the benefits of a barcode scanning system (more on that below).&nbsp;
</p>
<p>For example, you’ll never run into a warehouse that doesn’t scan barcodes. That’d be absurd. Any organization, distributor, wholesaler, warehouser, or reseller in the commerce world is expected to be well-versed in barcode scanning technology.&nbsp;
</p>
<h3>2. Barcodes mitigate error.</h3>
<p>To err is human, and nobody knows this better than those in the eCommerce world. Anytime you can outsource a human task to technology, you’ll both save time and reduce errors.&nbsp;
</p>
<p>Now extrapolate that out to entire systems: shipping, receiving, and the buying and selling of billions of dollars of product. The number of introduced errors would be catastrophic. Barcodes help to prevent these things by systematizing how product data is collected and tracked.
</p>
<p>And the bottom line is that errors are costly. They cause poor customer experiences, waste time, and create bottlenecks in your logistics pipeline.
</p>
<h3>3. Barcodes are inexpensive and discrete.</h3>
<p>If you were to purchase a can of tomatoes from the grocery store and notice a QR code on the back, it might be a bit jarring. However, nobody bats an eye at barcodes. They’re everywhere, and even when taking up a lot of real estate on the product itself, they’re widespread enough to be expected. This makes them a discrete choice for branding purposes.&nbsp;
</p>
<p>Further, barcodes are cheap. The technology has been around for over half a century and costs very little to generate and print. Barcode scanners are inexpensive (well under $75 for a great one) and used worldwide as the gold standard for product scanning.&nbsp;
</p>
<p>Whether you have items for sale, raw materials, finished products, tools, parts supplies, or anything in between, barcode inventory management comes with lucrative benefits.
</p>
<h2>How to Implement a Barcode Scanning System</h2>
<p>The mere mention of implementing a new system strikes fear into the hearts of many business owners. Any new technology is intimidating, especially when it challenges the status quo.
</p>
<p>But implementing a barcode scanning system doesn’t need to be scary. Here’s the step-by-step process for how to do it.</p><h3>1. Figure out the problem you’re trying to solve.</h3>
<p>Identify the specific problem you’re trying to solve with barcode technology before choosing a system to implement. Any problem that can be fixed by <i>reliably collecting and storing data </i>can be fixed by implementing a barcode system.&nbsp;
</p>
<p>Take some time to analyze your current business procedures and decide precisely how barcodes can help. After that, it’s time to move on to the next step.</p><h3>2. Conduct an audit.</h3>
<p>Audits are <i>essential </i>for commerce success. Period. This is especially true for those using barcode systems for inventory management, but it’s a general best practice for all businesses.
</p>
<p>We know nobody likes meticulously counting and logging products. The cold truth is that if you don’t have an accurate understanding of your inventory &mdash; whether in your warehouse or somewhere else in your logistics pipeline &mdash; you will never be able to trust your data.
</p>
<p>Block out a day, bite the bullet, and get it done. You’ll be glad you did.</p><h3>3. Distinguish your products.</h3>
<p>After you’ve audited every single thing in your pipeline, it’s time to delineate your products. Each of these delineations will receive its own barcode, so it’s essential to take your time on this step. Otherwise, you might wind up with duplicate or unparsed data.
</p>
<p>Here’s an example. Say you’re a clothing vendor that sells several different kinds of t-shirts. You have graphic tees, plain color tees, and undershirts.&nbsp;
</p>
<p>At first blush, you might think you’d need a barcode for each of these. But each of these categories has several permutations that need distinction.&nbsp;
</p>
<p>Rather than having one barcode for all undershirts, you’ll need a barcode for every product variation. That means one barcode for “XL Men’s Green Undershirts”&nbsp; and another for a Medium Women’s Grey Undershirts.”&nbsp;
</p>
<p>Even if you only sell three different “categories” of product, you’d likely end up with 30-50 distinct barcodes.&nbsp;
</p>
<p>Remember, barcodes only store and transmit the data that <i>you choose </i>to store in them. If you want to track each variation of your product inventory separately, you’ll need different codes.
</p>
<p>Logging these product permutations in an Excel spreadsheet is an easy and inexpensive place to start.</p><h3>4. Set up your infrastructure.</h3>
<p>Now that you’ve found your “why,” conducted an audit, and prepared your products, it’s time to get some equipment.&nbsp;
</p>
<p>A sound barcoding system has three essential parts:</p><ul><li>A way to produce and print barcodes</li><li>A scanner to decode barcodes</li><li>A platform to receive decoded barcode data</li></ul>
<h3>5. Print and label your inventory.</h3>
<p>Once you’ve adequately categorized your products, generated your barcodes, and set up your scanner, it’s time to print and label your inventory.
</p>
<p>There are dozens, if not hundreds, of software platforms that can help you do this with just a few clicks. Heck, there’s even a <a href="https://www.barcodesinc.com/generator/index.php" target="_blank">free barcode generator</a> you can use and print right from your browser.
</p>
<p>Now, all that’s left is to enjoy your well-earned efficiency and watch your profits rise.&nbsp;
</p>
<h2>Conclusion&nbsp;</h2>
<p>Barcodes are just a simple, effective way to store data. That data can be manipulated, stored, or tracked in dozens of different ways to help eCommerce businesses stay efficient and organized.
</p>
<p>They’ve been proven over decades of use to be reliable and inexpensive, and their popularity shows no signs of slowing.
</p>
<p>You can implement a barcode system in a few hours while spending virtually nothing, making it tough to find something to complain about this technology. For any business looking to stay organized, efficient, and error-free, barcodes a must-have.&nbsp;
</p>


What is Barcode Scanning and Why is it Important?

<p>Warehouses that run like well-oiled machines know that audits are essential. Reconciling your on-hand products with your records is foundational to accurate data at all stages of the logistics pipeline.</p>
<p>But as businesses grow and diversify their product offerings, traditional “all hands on deck” audits every quarter lose their efficacy.&nbsp;
</p>
<p>There are many different systems to help large organizations account for their products. Inventory cycle counting is one of the most popular.
</p>
<h2>What is Inventory Cycle Counting?</h2>
<p><a href="https://www.skuvault.com/blog/best-practices-for-performing-inventory-cycle-and-physical-counts/" target="_blank">Inventory Cycle Counting</a> is an inventory counting system that offsets the burden of traditional audits by rotating product counting in a cyclical schedule.&nbsp;
</p>
<p>Inventory cycle counting is ideal for large warehouses with lots of products or many different types of products.&nbsp;
</p>
<h2>Advantages of an Inventory Cycle Count</h2>
<p>What are the advantages of introducing a complex cycling system when you can just do a physical inventory? There are several.
</p>
<h3>1. Inventory cycle counts do not interrupt warehouse operations.</h3>
<p>When a business is small, shutting down warehouse operations for a day might be inconvenient. It may even cause a few orders to bottleneck and frustrate a few customers. But for large businesses, shutting down warehouse operations &mdash; even for a couple of hours &mdash; could be financially catastrophic.&nbsp;
</p>
<p>Therein lies the glaring problem with traditional physical audits. It requires a total shutdown of all warehousing operations to count the inventory and reconcile product data.&nbsp;
</p>
<p>That’s why cycle counts are so appealing to larger warehouses. Employees can perform cycle counts during business hours because of the segmented nature of their assignments. Managers don’t need to burden counters with counting the entire storehouse, but only one subset.&nbsp;
</p>
<p>This convenience makes inventory cycle counting less of a chore for employees, as well.
</p>
<h3>2. Inventory cycle counts are more flexible than traditional audits.</h3>
<p>A thorough physical audit is relatively cut-and-dry. It requires a shutdown of warehouse operations, the majority of employees’ effort, and a full count of all products. It’s not a very elegant system, especially in fast-paced warehouse environments where every second counts.&nbsp;
</p>
<p>On the other hand, inventory cycle counting has over half a dozen variations designed to accommodate specific business goals. Warehouse managers can not only customize <i>which </i>items to count, but <i>how </i>they’re counted, <i>when </i>they’re counted, and <i>who </i>counts them.
</p>
<p>These variations have a net result of higher accuracy, efficiency, and supporting critical day-to-day operations.&nbsp;
</p>
<h3>3. Inventory cycle counts are more accurate than physical audits.</h3>
<p>No audit is perfect. Inaccurate counts and shrinkage are inevitable. It’s an unfortunate reality, but warehouse employees can even rig the counts to cover up product theft.&nbsp;
</p>
<p>However, the more frequently you count, the closer you get to a 100% confidence level. Inventory cycle counts are not contingent upon an “all hands on deck” scenario of everyone in the warehouse counting together. This flexibility makes them strong alternatives to traditional audits.
</p>
<p>Organizations don’t usually punt their physical audits altogether, though. Traditional annual or bi-annual audits are supplemented by regular (monthly or even weekly) inventory cycle counts.
</p>
<p>Human error makes it impossible to have 100% confidence in inventory data, but a robust cycle counting system gets you pretty darn close.
</p>
<h3>4. Inventory cycle counts uncover problems that traditional audits miss.</h3>
<p>Inventory cycle counts are excellent means of accurate accounting <i>and </i>diagnostic tools that reveal inefficiencies in warehouse operations. For example, by randomly shuffling counters, you can identify and isolate “problem counters” who pathologically report inaccurate numbers.&nbsp;
</p>
<p>Then, you can drill down into <i>why </i>that’s the case. Perhaps it’s a need for more training, better tools, or they have some malintent.&nbsp;
</p>
<p>Inventory cycle counts also help stakeholders identify common inventory problems (such as stock-outs) quickly. Warehouse managers can respond by ordering more products before the error causes a negative customer experience.&nbsp;
</p>
<h2>Inventory Cycle Counting Methods</h2>
<p>Now that we’ve outlined the benefits of inventory cycle counting, let’s look at some of the most commonly-used methods.</p><h3>1. ABC counting method.</h3>
<p>This counting method prioritizes the highest-value products.
</p>
<p>The ABC categorization methodology is essential for warehouses with product types of varying value. The idea is based on the Pareto Principle, otherwise known as the 80/20 rule. This rule states that &mdash; generally speaking &mdash;&nbsp; 20% of your products are responsible for 80% of your profits.
</p>
<p>ABC counting parses out those products according to their value. The highest-value products go in the A category. The mid-tier and low-value products go into the B and C categories, respectively.
</p>
<p>Warehouse managers then prioritize their inventory cycle counts to favor the high-value products in the A category. For example, leaders may schedule cycle counts in the A category weekly, in the B category monthly, and the C category quarterly.</p><h3>2. Usage-based counting method.</h3>
<p>Any time an item exchanges hands &mdash; either via a manufacturer, distributor, or finally to the customer &mdash; it introduces potential inventory variance.&nbsp;
</p>
<p>This counting method combats that by prioritizing the most frequently-accessed products. “Accessed” could mean processed into the warehouse, processed out of the warehouse, or physically touched in any way.&nbsp;</p><h3>3. Hybrid counting method.</h3>
<p>The hybrid counting method blends the Usage-based and ABC counting systems to prioritize the <i>most-accessed</i> high-value items.&nbsp;
</p>
<p>This method is necessary when the ABC categories grow to an unwieldy level. Managers can parse out their ABC categories even further, prioritizing the highest-accessed A category products.&nbsp;
</p>
<p>Inventory variance in these products causes the most harm to the organization’s bottom line. Therefore, it logically follows that leaders would want to focus on accurate counts within this segment.&nbsp;</p><h3>4. Geographic counting method.</h3>
<p>The geographic counting method prioritizes counting products in a particular physical space. Coupling this strategy with random counters in random intervals can help identify problematic areas, such as theft or obsolescence.&nbsp;</p><h3>5. Opportunity-based counting method.</h3>
<p>This method prioritizes counting products at a particular stage in your logistics pipeline. Examples of key events that trigger a count in this system are:
</p>
<ul><li>Counting products at their reorder point
</li><li>Counting products when inventory levels dip below a certain level
</li><li>Counting products when they’re processed into your warehouse
</li></ul>
<p>This method is far and away one of the best for discovering inefficiencies in your pipeline. The fact that you’re counting the same product multiple times throughout its lifecycle means that you can isolate errors to their respective stages (ingest processing, reordering, etc.).
</p>
<p>This specificity allows stakeholders to discern problem areas or problem employees with greater confidence.&nbsp;
</p>
<h2>Best Practices for Inventory Cycle Counting</h2>
<p>Interested in implementing inventory cycle counting? Here’s how to set yourself up for success.
</p>
<h3>1. Ensure your inventory data is up-to-date.</h3>
<p>I know we’ve just spent the better part of this post heralding cycle counts as superior to traditional audits. That said, a good old-fashioned count certainly has its place in a well-run warehouse.&nbsp;
</p>
<p>A best practice is to conduct at least one before you implement a new cycle counting system. It’s a chore, but it will set you up with a baseline level of accuracy and eliminate <i>many </i>logistical headaches.
</p>
<h3>2. Randomly alternate between counting staff.</h3>
<p>It’s a frustrating reality, but warehouse theft is on the rise. <a href="https://www.supplychaindive.com/news/distribution-center-theft-and-collusion-on-the-rise/442565/" target="_blank">One survey revealed</a> that warehouse employees propositioned 40% of delivery drivers to commit conspiracy.
</p>
<p>In a traditional audit, the majority of employees count all items. This method opens up bad actors to plenty of opportunities to either tamper with the count or conspire to malicious ends.
</p>
<p>Randomly alternating your counting staff can help expose unethical (or even just incompetent) counters.&nbsp;
</p>
<h3>3. Leverage technology to mitigate errors and count efficiently.&nbsp;</h3>
<p>One of the best ways to mitigate human error is to outsource as much as possible to technology. For instance, barcode scanning systems can not only speed up your counts tenfold but eliminate the potential mistakes of logging inventory by hand.&nbsp;
</p>
<p>Digital inventory management software is also a must for storing, analyzing, and reconciling inventory data.&nbsp;
</p>
<h2>Conclusion&nbsp;</h2>
<p>Inventory cycle counting is a more sophisticated approach to reconciling inventory data for large-scale warehouses. It utilizes randomness, variation, and flexibility to provide more accuracy than traditional audits without interrupting critical warehouse operations.&nbsp;
</p>


What is an Inventory Cycle Count?

<p>Ecommerce retailers need to have a few things to be successful: a functional and appealing website, a good shipping strategy, and visibility into their inventory counts and locations. Unfortunately, most of these retailers make inventory mistakes initially that can cost them considerably, like not having an inventory management solution in place.</p>
<p>Ecommerce inventory management is a system to help retailers grow in every aspect of their business. The technology allows business owners to streamline warehousing operations and make smarter financial decisions.&nbsp;
</p>
<p>When you know how much inventory you have, everything else falls into place.&nbsp;
</p>
<h2>What is Ecommerce Inventory Management?&nbsp;
</h2>
<p>Intelligent inventory management is the backbone of any business. It operates to serve the frontend and backend of your operations. On the backend, it’s an integral part of the supply chain, often acting as the middleman between your suppliers and customers. For example, it keeps your quantities accurate on the frontend so you don’t lose customers due to incorrect information.
</p>
<p><a href="https://www.skuvault.com/blog/ecommerce-inventory-management-techniques-and-best-practices/" target="_blank">Ecommerce inventory management</a> is simply the act of tracking the location, amount, pricing, and mix of inventory available from your business. The ecommerce aspect considers the necessities of an online retailer that may need to track inventory for multiple online sales channels.&nbsp;
</p>
<h2>Why is it Important?&nbsp;
</h2>
<p>Before you begin your search and implement an ecommerce inventory management solution, it’s important to assess the needs of your business to find a suitable solution. Why? Because inventory management touches nearly every aspect of your business operations.&nbsp;
</p>
<p>First and foremost, it offers visibility into inventory counts and locations from when it enters your warehouse until it reaches your customer. Users can better view products that are overstocked, understocked, out of stock, or missing entirely. This kind of visibility allows you to better forecast inventory purchases and prepare for potential shortages.&nbsp;
</p>
<p>A reliable inventory management system aids your customers in a positive buying experience. Because the system automates inventory workflows and updates quantities across your sales channels, inventory counts are always accurate. Therefore, counts online are advertised correctly, and customers have a better chance of actually receiving the right product.&nbsp;
</p>
<p>The last thing you want is to lose a customer from a negative shopping experience.&nbsp;
</p>
<h2>What are some Ecommerce Inventory Management Strategies?&nbsp;
</h2>
<p>There’s not a one size fits all ecommerce inventory management solution. Each business has unique needs that adopt different strategies to track its inventory. Take a look at the following options to determine which approach might be a good fit for your business model.&nbsp;
</p>
<h3>1. ABC analysis.</h3>
<p>Inventory is categorized into three areas using the ABC Analysis method. Each category is based on SKU's profitability.&nbsp;
</p>
<p>Let’s break this down. Category 1 could consist of inventory that is high in value but may be low in quantity. Category 2 could include inventory that is moderate in both value and quantity. Lastly, category 3 could include inventory that is low in value and high in quantity.&nbsp;
</p>
<p>When you break inventory into categories like this, it enables your business to sell various product lines. Why is that important? Because diverse product lines enable customized restocking strategies for each category type.&nbsp;&nbsp;
</p>
<p>For example, if you’re a handbag retailer selling $2,000 handbags and $50 keychain accessories in the same store in-person or online, you’re not going to use the same fulfillment strategies for both. One product is more valuable than the other.&nbsp;
</p>
<p>Therefore, implementing the ABC analysis strategy allows for more control over each product’s replenishment, primarily when used with an inventory management system.&nbsp;
</p>
<h3>2. Just-in-time inventory.</h3>
<p>If your business doesn’t need to keep a large amount of inventory on-hand, the just-in-time inventory method, or JIT, is for you. This strategy is implemented by businesses that only need to stock orders as they are purchased by customers. The volume of inventory is typically equal to the number of filled orders.&nbsp;
</p>
<p>Companies selling seasonal merchandise is an excellent example of the JIT strategy. As demand increases for their products, they order just enough to fill orders. As the season winds down, they can clear the shelves without fear of lost money tied up in dead stock.&nbsp;
</p>
<p>If you’re a company that depends on buyer trends, this strategy is not for you. Unexpected surges in demand - like many industries saw in 2020 during Covid-19- can cause expensive stock outs.&nbsp;
</p>
<h3>3. Dropshipping.&nbsp;</h3>
<p><a href="https://www.skuvault.com/blog/blog-dropshipping-beginner-mistakes-how-to-avoid/" target="_blank">Dropshipping</a> has become one of the most popular and easily accessible inventory management strategies. However, it’s not exactly a straightforward inventory practice because business owners don’t touch the product. Instead, when a customer places an order, you, the business owner, fulfill it from the manufacturer and send it directly to them. You don’t touch the inventory at all.&nbsp;
</p>
<p>This technique is utilized frequently by first-time ecommerce sellers looking to build their business fast but don’t have the money for a storage facility or warehouse.&nbsp;
</p>
<p>Although dropshipping may sound like a walk in the park, the drawback is that you have zero control over the customer experience. Since the manufacturer is doing the bulk of the work after a customer’s purchase, how the product is stored and shipped is their decision. If a customer received a broken or incorrect product, they would look to you to provide answers.&nbsp;
</p>
<h3>4. First In, first out.</h3>
<p>The first in, first out strategy is highly favored by retailers selling goods with expiration dates. First in, first out, or FIFO, means the first products to arrive in a warehouse are the first to be fulfilled for customers.&nbsp;
</p>
<p>It’s not just for industries selling perishable goods. Anyone can implement this inventory management strategy if they want to rid the product early. However, be careful to study the price patterns of your goods and materials. If the prices fluctuate often, it can result in inflated profits due to the difference between the cost of goods received and the cost of goods sold.&nbsp;
</p>
<p>First expired, first out (FEFO) and Last in, first out (LIFO) are two additional inventory methods used by retailers selling perishable goods.&nbsp;</p><h3>5. Safety stock.</h3>
<p>Safety stock is another popular inventory management strategy used by retailers whereby they hold extra inventory in case demand increases unexpectedly. Unlike the JIT method, safety stock helps you cover unexpected delays and demand fluctuations to sustain consistent output.&nbsp;
</p>
<p>Retailers utilize safety stock to plan for such variables as incorrect forecasting, consumer demand changes, and different lead times for your various raw materials. So when you hold safety stock inventory, you’re able to overcome these obstacles because you have extra inventory on-hand
</p>
<h2>Conclusion
</h2>
<p>Inventory is your company’s biggest asset. Treat it like one. Implement the inventory management strategies discussed above to make better purchasing decisions, to create better warehouse organization, and to gain overall visibility into what exactly you have in your warehouse and where it’s located.&nbsp;
</p>


What is Ecommerce Inventory Management?

<p>Ecommerce has emerged as the one true leveler of the playing field of our times. Companies today are increasingly investing in techniques that can help them outsmart their competition. Inventory management is one such key area that has transformed over the past decades for the better.<br></p>
<p>Companies that can cut down on their inventory costs have a significant edge over the other players, which is why we’re witnessing <a href="https://www.orderhive.com/inventory-management.html" target="_blank">revolutionary inventory management methods</a> being developed around the world.
</p>
<p>“Just In Time” (JIT) is one such highly effective inventory management technique that originated in post-WW2 Japan but has been implemented worldwide and has shown exemplary results.
</p>
<h2>Definition</h2>
<p>Just In Time (JIT) inventory management refers to an inventory management technique that focuses on cutting down the inventory by procuring raw materials after receiving the sales order. This way, the companies can reduce their inventory costs by only storing the bare minimum raw materials required for production. JIT is in direct contrast with the Just In Case strategy, where companies beef up their inventory to tackle any increase in sales.
</p>
<h2>JIT: How it All Came About</h2>
<p>Also known as the Toyota Production System, the JIT was first adopted by the visionary founder of the Toyota Motor Company, Mr. Kiichiro Toyoda. The story of how he stumbled upon the idea is almost serendipitous. Once, during his visit to the United Kingdom, Mr. Toyoda missed his train. Although the train was on time, he was slightly late and hence missed it by a few minutes.&nbsp;
</p>
<p>This got him thinking about the parallels between this incident and material procurement & production. He thought- if the material arrives late, it causes unfortunate delays in production and losses, but if the material arrives earlier than required, it causes unnecessary inventory costs. Hence, the material must arrive just in time. However, since Mr. Toyoda wasn’t a native English speaker, the concept was inscribed with a grammatical error and became the “Just In Time” system in 1936.
</p>
<p>However, Toyota would not go on to implement this system until the 1970s. Japan was still reeling from the aftermath of WW2. Due to the lack of real estate spaces in the country, companies found it challenging to expand their inventories by setting up warehouses.
</p>
<p>Another fallout of the world war was that it left the country’s economy in a mess. So even though the Japanese had the technical prowess to build brilliant engineering products but lacked the necessary funding, something that the western manufacturers didn’t have to face. To overcome this two-fold challenge, a Toyota employee named Taiichi Ohno came up with a bold yet brilliant action plan.
</p>
<p>As the world witnessed the stellar success of JIT shown by Toyota, more companies were interested in adopting the model for managing their inventories. The word “JIT” started regularly occurring in popular literature across multiple languages. The spike on the Ngram below shows the sudden rise in JIT’s popularity around the world after the successful implementation in Japan.
</p>
<figure><img src="https://lh3.googleusercontent.com/7t234shNXnYffZhk-AOCrvy0ZRp1zeSZ3JCHPeFOvR8sT9W8BtBoxX0NvFNtGfBgqCQO0DprcMzE0kqwdm2fZXqQrOVdxJai09eiFRSMtFEjsBk-6d7LjYfF7c8awW5kPGRyJRk" width="555" height="214"></figure>
<p>Today, apart from Toyota, many other famous companies like Apple & McDonald’s have adopted some or the other variant of JIT as their guiding principle when it comes to inventory management.
</p>
<h1>How JIT Compares to the Conventional Supply Chain</h1>
<p>A crucial part of JIT’s charm is that it completely revolutionized the traditional <a href="https://www.bigcommerce.com/blog/ecommerce-supply-chain/">supply chain systems</a>. Conventional inventory management talks of procuring the raw materials in advance by predicting the sales and producing the finished goods to meet the demand.
</p>
<p>Companies place the order for the raw materials well before they receive the sales order for the product. The raw materials are then stored in the warehouse or the godown, from where they’re taken to the production site. The finished goods are then again moved to the <a href="https://www.bigcommerce.com/blog/ecommerce-warehousing/">warehouse</a> to build up an inventory, after which the marketing & the sales cycle begins.
</p>
<p>However, with JIT, the procurement process begins once the sales order is received. This way, the company only produces the goods that have already been paid for, or at least have been ordered. This way, the raw materials are only procured just before the beginning of the production cycle. The cascading helps cut down the inventory and makes JIT a truly innovative approach, albeit a highly risky one.
</p>
<h1>Risks</h1>
<p>In the year 1997, a <a href="https://sloanreview.mit.edu/article/the-toyota-group-and-the-aisin-fire/" target="_blank">fire</a> broke out in the factory of Aisin Seiki, a company in Japan that supplied an essential automobile component called “proportioning valves” (or P-valves) to none other than Toyota motors. This incident was the first major event that put the much acclaimed JIT technique to test. Toyota’s JIT allowed them only two to three days of inventory, while the fire at Aisin Seiki was so bad that it had crippled their production capacity for the next few months.
</p>
<p>Through this incident, the world witnessed one of the biggest downsides of running a lean inventory. The airtight cascading of different cycles allow for a very little margin of error for companies in case of such unforeseen events. Luckily, Toyota managed to get their production back on its feet, thanks to the vast network of suppliers with whom they had great relationships. This shows how crucial it is to have a diverse network of suppliers <span class="Apple-tab-span">	</span>if you want to keep your production running in the face of such adversities.
</p>
<p>A few other risks associated with Just In Time are:
</p>
<ol><li>You may save big on inventory costs, but in the case of a mishap, be prepared to spend some extra bucks since you’ll have to get the system back up and running urgently. The conventional inventory management allows you some room to maneuver your stand by resources while you search for the most economical approach, which is something that you cannot do with JIT.
</li><li>The transfer of information between various departments and arms of the organization and even between the organization and the suppliers has to be lighting quick. Any delay may have heavy economic consequences. Modern day cloud based warehouse management systems have <a href="https://www.orderhive.com/cloud-based-warehouse-management-system?type=blog" target="_blank">helped companies overcome the logistical challenges</a> and have transformed inventory management.
</li><li>It is extremely easy to get distracted by just how efficient JIT is, and not prepare for a rainy day. Businesses that fail to devise a contingency plan often find it much more difficult to come out of an unforeseen failure.
</li></ol>
<h1>The Final Word</h1>
<p>Theoretically, the Just In Time inventory management system is one of the best things that have happened to manufacturing since the industrial revolution. However, like with everything else, the proof of this pudding lies in the eating. The implementation of JIT is trickier than it comes across as, mostly because it involves letting go of the conventional systems completely. Implement it well, protect the downside by mitigating the risks, and you will see stellar results.</p>

What Is Just In Time Inventory?

<p>Commerce is evolving. While some things have changed incomprehensibly, others never have. From the earliest days of merchants and traders, certain elements have held true. One of them? Inventory. It may seem like inventory management is a modern problem, but it’s one we’ve been dealing with since the birth of business.&nbsp;</p>
<p>In the late 1800s, <a href="https://inventorysystemsoftware.wordpress.com/2012/02/06/brief-history-inventory-management/">Herman Hollerith</a> invented the first punch card readable by machines, which marked the first innovation in inventory. This invention was a precursor to the computer, and Hollerith’s company went on to become IBM.&nbsp;
</p>
<p>During the 20th century, innovation for commerce was totally transformed. In the 1930’s, <a href="https://dashboardstream.com/the-history-of-inventory-management/">the modern checkout system</a> was invented at Harvard. And by the 1960’s the UPC or barcode system had been invented.
</p>
<p>These great strides in the modernization of commerce have played a big role in the turn toward ecommerce. Modern technologies have allowed ecommerce businesses to grow exponentially. With that growth, comes a need to manage and control inventory at a much larger scale. Today, that scale comes in the form of warehouses.&nbsp;
</p>
<p>Warehouses are essential for millions of businesses that rely on ready-made inventory to propel their operations. Once a business reaches capacity in its first warehouse, it needs to expand into another, or multiple if necessary. Of course, some businesses may start out with more than one warehouses or fulfillment centers for many different reasons, likely having to do with production and the location of their customer base.&nbsp;
</p>
<p>
<b><i>Putting into practice: </i></b><i>As an example, let’s say you’re an ecommerce retailer specializing in bridesmaids dresses. Your primary audience has historically been in the Southern US, with your warehouse in Florida. This year, you’ve added warehouses in California and Texas to meet a rapidly expanding customer base. Now that you need to manage multiple warehouses, you’ll need to keep an eye on the inventory stock of each one, plus track what customers are ordering from which areas of the country. Understanding and managing these decisions will be a large part of your multi-warehouse management work. </i>&nbsp;
</p>
<p>So how do businesses juggle both the inventory and operation of multiple warehouses? Keep reading to understand what multi-warehouse management is, what it’s good for, and what some of the most common challenges are.&nbsp;
</p>
<h4>Defined: Multi-Warehouse Management&nbsp;&nbsp;</h4>
<p>Multi-Warehouse Management involves the management of operations in multiple warehouses. The term covers all operations, involving inventory, staff, shipping, storage and movement of goods. 
In the world of ecommerce, <a href="https://www.explorewms.com/complete-wms-features-and-requirements-guide.html">Multi-Warehouse Management</a> has a more specific meaning, centered around the shipping and fulfillment of products from multiple warehouses, plus the related logistics. There are many reasons an ecommerce store would ship out of multiple warehouses.&nbsp;
</p>
<h4>Benefits of Multi-Warehouse Management</h4>
<p>Having multiple warehouses inherently makes it cheaper and faster to ship to a wider area. But the benefits extend far beyond this. Implementing a system that effectively manages warehouse distribution provides a bevy of other benefits too, which will make order fulfillment more accurate, efficient and transparent.&nbsp;</p><ul><li>One single point of truth</li><li>Unlimited warehouses</li><li>Real-time data</li><li>Locate and track inventory&nbsp;</li><li>Warehouse stock transfers</li></ul>
<ol><li><b>One single point of truth.&nbsp;</b></li></ol><p><span style="background-color: initial;">With effective multi-warehouse management, you have a reliable, constant source of accurate information about each of your warehouses and what’s inside them. This eliminates the need for individual warehouse management, which can leave data and details siloed within its own location.
Multi-warehouse management means every piece of information about every one of your warehouses is indexed and easily accessible. This removes the need to relate different information from warehouses to one another across mismatched systems. Common issues with over and understocks, mismatched inventory levels and missed fulfillment deadlines are eliminated when multi-warehouse management is applied. 
Say goodbye to confusion, frustration and inaccuracies, and get acquainted with a single point of truth.</span></p>
<p><b><i>Putting it into practice:</i></b><i> As a dress seller, you need full clarity into which collections&nbsp; are in stock in which warehouse. With mismatched information from different sources at the different warehouses, you might run into trouble. One issue could come from different quantity counts. If gowns in the Texas warehouse are stored and counted in single quantities, but the Florida warehouse counts a single unit as a package containing four of the same dress, you’re headed for trouble. Having a single source of truth applied to every product in every warehouse will give you clear and comparable data to work with. </i>
</p>
<p><b>2. Unlimited warehouses.&nbsp;</b></p><p>Whether your business is large or small, you can have as many warehouses or fulfillment centers as you need. Effective multi-warehouse management allows you to easily add and customize warehouse data, which then does the work for you from there.&nbsp;</p>
<p>
There are a multitude of features and options you may require in your management solution, but the most vital function is the ability to fulfill orders based on individual order details. In other words, your warehouse management system must effectively communicate with your ecommerce platform to reap its benefits. A smart solution allows seamless links between every order placed, and every piece of inventory needed to fulfill the order. 
</p>
<p><b><i>Putting it into practice: </i></b><i>With so many dress choices, you don’t want to be limited to a single or a couple of warehouses. As your line expands and grows in popularity, you need to have a scalable system in place. Perhaps in the coming months, you realize you need to open an additional warehouse in Michigan to serve midwestern customers. With an out-of-sync multi-warehouse management system, you’d be facing a massive task in adding a warehouse. With an effective system in place, however, adding a warehouse is simple and straightforward.</i>
</p>
<p><b>3. Real-time data.&nbsp;</b></p><p>The most valuable asset you’ll gain with multi-warehouse management is the accessibility of live, accurate data. When all warehouses use the same system, inventory and distribution runs smoothly.&nbsp;</p>
<p>
When setting up your warehouse management, it’s vital to upload and sync all data accurately so everything starts from a place of certainty. With accurate data close at hand, you can monitor stock quantities and stock in transit, plus stay on top of updates, and changes within every warehouse. Better yet, with multi-warehouse management effectively implemented, you’ll be able to access order data in real-time, no matter the location of the fulfillment warehouse.&nbsp;&nbsp;
</p>
<p><b><i>Putting it into practice: </i></b><i>You’ve just released a new line of dresses in jewel tones. Customers are going crazy placing orders for entire wedding parties. Luckily, with multi-warehouse management in place, you can feel confident in inventory counts at each of the warehouses. Having useful purchase data in your back pocket, you’ve planned ahead for expected order volume, keeping in mind that your customers in California tend to need bridesmaids dresses throughout the summer months, while those in the South tend to order their dresses to be ready in the cooler spring or fall months. With this data coming in in real-time, you can make stock transfers, keep an eye on inventory count and gain valuable purchase data.</i>
</p>
<p><b>4. Locate and Track Inventory around the globe.&nbsp;</b></p><p>With full visibility into every order and every piece of inventory, there’s no more mystery surrounding current stock levels, order statuses or fulfillment logic. This affords you a single view of each warehouse and everything inside, giving you the full flexibility to fulfill items in the most efficient way possible. Finally, you have complete visibility over the location of every single product.&nbsp;</p><p><span></span><b><i>Putting it into practice: </i></b><i>With manual inventory counts and mis-matched management systems, you might not know where your stock is at any given moment. Perhaps I know I’ve still got 800 of the new popular emerald gowns in my inventory, but with several having been purchased and returned, and still more having been undeliverable, it could be a challenge to track them all down. Effective inventory tracking eliminates this issue, and makes every piece of inventory traceable and manageable.&nbsp;</i></p>
<p><b>5. Warehouse stock transfers.&nbsp;</b></p><p>With effective multi-warehouse management, a transparent system offers clear insight into needed stock transfers. You’ll see real-time information on specific stock levels and order volume, giving you full control to transfer stock for timely order fulfillment. When an order is picked, the system is updated immediately, eliminating troublesome discrepancies and delays.</p>
<p>
<b><i>Putting it into practice: </i></b><i>Need a shipment of dresses for a convention in Florida? Time to transfer stock. Seeing a spike in demand in LA? Send a few dozen top sellers that way. With full visibility, you’re better equipped to handle any exceptions or transfer needs.</i>
</p>
<h4>Challenges Warehouses Face Without a Multi-Warehouse Management System&nbsp;</h4>
<p>Without the right systems in place, merchants face a multitude of issues with regard to communication, inventory count and operational transparency.
</p>
<ol><li><b>Issues with cross-warehouse communications.&nbsp;</b></li></ol><p>With warehouses operated by different teams, communication is bound to be a significant challenge. If separate warehouses operate on various management systems, insight into inventory, stock transfers, quantity tracking and any unexpected issues cannot be effectively communicated within the management system. 
It’s vital to set up points of contact and processes for communication within several steps of the fulfillment process. A warehouse can only operate as effectively as it’s set up to do. The more issues that happen within the warehouse, the higher the chance is that a customer will receive a late or inaccurate order, which is the worst case scenario for an ecommerce merchant.</p><ol><li><b>Lack of oversight into inventory levels at all sites.&nbsp;</b></li></ol><p>Without accurate and thorough oversight of inventory levels, every order placed leaves a merchant vulnerable to unforeseen delays and fulfillment issues. 
If stock is stored incorrectly, improperly identified, or simply misplaced, the management of any warehouse becomes significantly more complicated.&nbsp;</p>
<p>
Discrepancies between purchase orders, storage locations or a number of different elements could seriously disrupt warehouse operations, even if it’s only occasional. By far, the most common issue warehouse managers face is inaccurate inventory counts. 
</p>
<p><b>3. Multi-Warehouse Rating.&nbsp;</b></p><p>Without the right tools in place, you’ll face a lot of trouble accessing shipping rates that remain accurate across multiple warehouses. If your system doesn’t take into account where your inventory is located, or whether it’s located in one or multiple warehouses, it can’t give you accurate rates. 
Without Multi-Warehouse Management, your customers will be left with inaccurate shipping rates, which will inevitably be passed on to you. To boot, your customers might experience delivery delays if a shipment is calculated to come from one location, but ships from another.&nbsp;</p>
<h4>Conclusion&nbsp;</h4>
<p>When the time comes to expand to multiple warehouses, ecommerce merchants have a lot to consider. However, if the goal is expansion with a strategic plan for management, any merchant would be wise to implement a powerful multi-warehouse management system that turns every order into a piece of actionable and meaningful data.&nbsp;
</p>
<p>Learn more about how <a href="https://blog.shipperhq.com/2020/01/shipping-rates-multiple-warehouses/">ShipperHQ can help with Multi-Warehouse Management here</a>, and learn about <a href="https://www.bigcommerce.com/apps/warehouse-management/">Bigcommerce apps</a> that can help you master Multi-Warehouse management with a solution that’s built to seamlessly connect to your Bigcommerce store.&nbsp;
</p>
<p><i>This article was provided by our partners at </i><a href="http://www.shipperhq.com/"><i>ShipperHQ</i></a><i>.&nbsp;</i>
</p>


What is Multi-Warehouse Management?

<p>A shipping API gives companies greater flexibility by allowing programmers to integrate shipping functionality directly into your business systems or ecommerce website. You can customize the shipping application programming interface (API) for specific business needs and shipping carriers to improve fulfillment.&nbsp;</p>
<p>Every business has its own unique challenges it needs to overcome for the best overall user experience and growth. Understanding the variables of an effective shipping strategy and what a shipping API can offer for your business can get you closer to long-term success.</p>
<h2>How Do APIs Work?</h2>
<p>“API” stands for Application Programming Interface. APIs allow two different applications to transfer information between one another and display this information to a user in a single interface. Generally speaking, APIs make it easier for developers to take advantage of and use certain technology in their applications. This is achieved by simplifying the programming and only providing developers with the actions they need.</p>
<p>Shipping APIs integrate with several carriers regionally and globally (USPS, FedEx, DHL, Royal Mail, etc) to provide multicarrier functionality and support. Instead of integrating with individual carriers, a shipping API only needs to integrate once to have access to the full carrier network.</p>
<p>For the most part, shipping APIs are used by ecommerce businesses to send orders to customers, allowing for many options that can meet many businesses’ requirements. Shipping APIs are the bridge that connects businesses with shippers and customers.</p>
<h2>How Does Shipping Affect an Ecommerce Business?</h2>
<p>When shopping online, the leading cause of shopping cart abandonment is extra costs (shipping, tax, fees) according to a study by the <a href="https://baymard.com/checkout-usability">Baymard Institute</a>. With more and more brands offering free shipping, why would a customer want to pay extra and wait longer for their products to arrive?</p>
<p>However, if stores offer discounted or free shipping, even if it means waiting additional days or shopping more to qualify, customers are more willing to go through checkout. To that end, some shipping APIs, such as <a href="https://www.shipengine.com/pricing">ShipEngine</a>, will have negotiated rates that significantly lower the cost of shipping. This allows businesses to provide the best shipping solutions and make sure products are shipped properly and arrive as fast as possible.</p>
<p>A reliable shipping and delivery API will help avoid errors and complications by managing customers’ orders from the moment the order is placed to when the package is delivered to their doorstep.</p>
<h2>What Benefits Do Shipping APIs Offer?</h2>
<h3>1. Simplification.</h3>
<p>A good API will provide you with a simple interface with minimal disruption so you can focus on growing your business.</p>
<h3>2. Safe and reliable shipping.</h3>
<p>By using shipping APIs, online businesses can insert shipping and delivery directly into their business model and fully automate the checkout process. Not only will this save the business time, but it will also provide a much better shopping experience for the customer.</p>
<h3>3. Real-time shipping resources.</h3>
<p>In a market where big companies like Amazon have set a high bar for the ecommerce experience, being able to leverage an integration with a variety of shipping carriers to get the best shipping options for your customers (cheaper, faster, etc.) is key.</p>
<p>Shipping API integrations include real-time quotes from many different carriers, allowing shoppers to choose the shipping method that works best for them.</p>
<h3>4. Global address validation.</h3>
<p>Regardless of shipping volume, failed deliveries and address change surcharges can damage a customer’s perception of your business and cut into your revenue. Address validation services will guarantee packages arrive at the correct destination the first time.</p>
<h3>5. Real-time tracking.</h3>
<p>Being able to track packages across various carriers and create tracking events to keep customers up to date is a valuable tool. It gives the customer greater insight into expected time of delivery as well as any unexpected issues that can happen during the shipping and delivery process.</p>
<h2>Conclusion</h2>
<p>Building an automated system to process orders and arrange shipping is necessary for store owners to focus on growing their business. And having all the information and tools to ensure the best shipping and delivery experience is possible with <a href="https://www.shipengine.com/">shipping APIs</a>.</p>
<p>By using shipping APIs, you can streamline the whole process and make sure you stay ahead of your competition by easily shipping to numerous locations regionally and internationally.<br><br></p>

How Ecommerce Businesses Can Take Advantage of Shipping APIs

Shipping API Explained

<p><strong>Definition:</strong> Commercial Plus Pricing (CPP) is a pricing model offered by the United States Postal Service that provides additional discounts to high-volume ecommerce companies. CPP is a higher-level version of Commercial Base Pricing that can provide high savings to merchants who exceed a defined threshold for number of shipments per year. </p>
<h4>How do online businesses qualify for Commercial Plus Pricing?</h4>
<p>The main criteria for Commercial Plus Pricing is the <em>volume</em> of shipments based on USPS service:</p>
<ul>  <li><strong>Priority      Mail:</strong> 50,000 shipments per year</li>  <li><strong>Priority      Mail Express:</strong> 5,000 shipments per year</li>  <li><strong>International:</strong>      $100,000 in postage value</li> </ul>
<p>Note that these qualifications are separate&mdash;it is, for example, entirely possible for a company to qualify for Commercial Plus Pricing on Priority Mail Express <em>without</em> receiving the discount on regular Priority Mail. Priority Mail and International are measured by shipping volume in the previous calendar year, while Priority Mail Express is calculated by shipping volume in the previous four quarters.</p>
<p>Companies do not actually have to ship the specified number of packages in order to qualify for Commercial Plus Pricing. In many cases, simply being on track to ship that many is enough to qualify for the discounted rate.</p>
<h4>Does Commercial Plus Pricing Need To Be Negotiated?</h4>
<p>Not necessarily. Some providers of digital shipping labels integrate Commercial Plus Pricing into their software and automatically start applying it as soon as they believe a company has met the criteria for it. Most companies <em>will</em> have to sign something for the USPS at some point in the process, but actually acquiring the CPP discounts is generally an easy process.</p>
<h4>How Much Can An Online Business Company Save With Commercial Plus Pricing?</h4>
<p>Most Commercial Plus Pricing is done at a scaling rate involving factors like parcel weight and how many items are actually being shipped. As such, there is no way to predict exactly how much a company will save until more information about its parcels has been provided.</p>
<p>In general, however, companies can expect to save more with Commercial Plus Pricing than they would with Commercial Base Pricing, averaging somewhere around 10% more for Priority Mail and scaling down for other forms of shipment.</p>
<p><em>Learn more about how you can optimize shipping for your ecommerce business: <a href="/essentials/features/manage/shipping-fulfillment/">BigCommerce Shipping and Fulfillment</a> </em><br></p>

Your business may qualify to save on USPS shipments.

What is Commercial Plus Pricing?

<p><strong>Definition</strong>: Free shipping is an increasingly-popular option for online shopping, where customers do not have to pay an additional shipping charge. <a href="https://www.bigcommerce.com/ecommerce-answers/why-offer-free-shipping-how-to-turn-a-profit-from-this-popular-perk/" target="_blank">Free shipping is attractive to customers</a> who appreciate simple pricing structures, which in turn makes it a potential competitive advantage for online businesses.</p>
<h4>Why offer free shipping? </h4>
<p>Shipping options play a pivotal role in an online shopper's decision of where to spend their hard-earned dollars:</p>
<ul>  <li><strong>By      providing numerous shipping options</strong>, an online retailer can      capitalize on the booming ecommerce experience to generate revenue streams      through increased sales.</li>  <li><strong>Free shipping entices customers to purchase</strong> by      wrapping all costs into the price of each item.</li>  <li><strong>Shopping      carts are often abandoned</strong> at the checkout when customers      are dissuaded by an additional shipping charge. Maintaining a steady cost      from product page to checkout increases a customer's likelihood on      <a href="/blog/abandoned-carts/">following through with the purchase</a>. </li> </ul>
<h4>How to pay for free shipping</h4>
<p><span></span>Someone has to pay for the cost of delivering goods to consumers. The ultimate challenge for online businesses is <a href="https://medium.com/optimizing-search-for-e-commerce/10-ways-you-can-offer-free-shipping-1e4c086b8d0e">how to affordably offer free shipping</a> and balance the expense? <br></p>
<ul><li><strong>Factor shipping into operation and pricing</strong>: understand shipping costs from the moment you receive inventory and include it in financial models. </li><li><strong>Market free shipping: </strong>Customers love <a href="https://www.shipbob.com/blog/how-to-offer-free-shipping-ecommerce-store/" target="_blank">free shipping</a>, but they need to be made well aware that it's a distinguishing perk. Mention free shipping or on every major page that gets customer visits, and be sure to include it on product pages. </li><li><strong>Focus on up-sells and cross-sells: </strong>Shipping gets more efficient as items are added. When merchants incur the cost, it makes up-sells<a href="/ecommerce-answers/what-difference-between-upselling-and-cross-selling/">and cross-sells a margin-mover</a>. </li></ul>
<p>Online businesses can also reduce overhead through established relationships with shipping vendors. Free shipping is also a long-term play: taking a short-term loss can be a smart sacrifice with a big-time payoff down the road if the policy generates <a href="https://www.bigcommerce.com/ecommerce-answers/what-are-brand-advocates/">loyal customers and brand advocates</a>. </p>
<h4>Different ways to offer free shipping</h4>
<p>Free shipping can be an effective marketing tool that aims to benefit both the consumer and the retailer. There are many ingenious ways to <a href="/blog/conversion-rate-optimization/">generate revenue</a> and keep consumers returning to a particular online store. The majority of businesses choose to offer free shipping in conjunction with additional delivery options such as overnight express delivery at a cost to the consumer. Additionally, the delivery campaigns below offer ways to increase sales:</p>
<ul>  <li><strong>Orders      over a specific dollar amount</strong>: Many savvy shoppers      will add additional items to their shopping cart to receive something for      free, especially delivery</li>  <li><strong>Buy      two or more items: </strong>Up-sell through the use of a      free shipping campaign</li>  <li><strong>A      pre-determined time period</strong>: Offering free shipping during      a specific time frame is ideal for increasing sales during slow periods &mdash;      or offers further incentive during highly-competitive seasons. </li></ul>

Find out how to offer free shipping and still turn a healthy profit.

Why offer free shipping? How to turn a profit from this popular perk

<p style="margin-top:3%;"><strong>Definition: </strong>Stock Keeping Units are unique alphanumeric codes used by merchants to identify product types and variations. Online businesses use SKUs to manage inventory and ensure that the proper items are packaged and shipped to customers.</p>
<h4>Why &mdash; and how &mdash; online businesses use SKUs</h4>
<p>Most commerce businesses use SKUs to . SKUs serve these three basic functions:</p>
<ul><li><strong>Inventory</strong>: Making sure that an acceptable quantity is always on hand.</li><li><strong>Warehouse logistics</strong>: Makes it easier to quickly find and package the correct product.</li><li><strong>Item specification</strong>: Denotes different product variations such as size and color.<em><strong> </strong></em></li></ul>
<p>SKUs were traditionally used to identify purchasable items in retail stores or catalogs. Online businesses now use these identifiers for the same purpose, with websites replacing &mdash; <a href="https://www.bigcommerce.com/apps/square-register/">or integrating with</a> &mdash; physical storefronts. Consider the following example: a woman's shirt in a specific style and size can be assigned a stock keeping unit like “4287-6.” This means it is style 4287 in a size 6. In other instances, SKUs can contain characteristics including:</p>
<ul>  <li>Item      description</li>  <li>Packaging      information</li>  <li>Color      identification</li>  <li>Warranty      terms </li>  <li>Manufacturer      information </li> </ul>
<p>SKUs are oftentimes not visible to customers, as they are primarily useful for merchants and product suppliers. The customer should never need the SKU for personal purposes.</p>
<h4>SKUs vs. Product Models</h4>
<p>It is important to distinguish between a stock keeping unit and product model numbers that are assigned to items by manufacturers. Model numbers can form part or all of the SKU, commonly as a hyphen-separated variation on the tail-end of the primary code. In a retail environment, they serve as a component of the back-end inventory control system to empower retailers to track products that are in inventory at warehouses or retail outlets.</p>
<h4>SKUs can be used for any type of order fulfillment </h4>
<p>In some instances, the SKU is not physically placed on products that temporarily reside in inventory. SKUs can actually be applied to intangible products that are billable but not visible to the naked eye. Examples are vehicle/home appliance warranties and units of repair time. It is prudent to think of them as codes assigned to a producer's billable entities. Regardless of appearance, the SKU facilitates the product tracking and inventory processes. </p>

SKUs help online businesses stay organized and sync inventory with fulfillment.

What is a SKU number and how do online businesses use them?

<p><img src="https://www-cdn.bigcommerce.com/assets/answers/Multichannel-listing.jpg" style="float: left; margin: 0px 10px 10px 0px;">Online store owners can list their products on multiple channels to reach new audiences and increase sales. If you're selling on a single channel for your ecommerce business, you're only reaching a small percentage of your potential market. Multichannel listing will help your company tap into larger audiences and win customers who normally wouldn't find out about your products.
</p>
<h4>What is multichannel listing?</h4>
<p><strong></strong>Multichannel listing is simply the process of listing products and services on various digital properties. Traditional means of multichannel listing included promoting products and services in catalogs and in brick-and-mortar stores. Ecommerce companies can now list their products on a wide variety of digital platforms and channels.
</p>
<h4>How do you set up multichannel listings?</h4>
<p><strong></strong>Multichannel product listing are set up through an <a href="/apps/multichannel-listings/">ecommerce platform provider</a>. Online retail host sites typically integrate with other marketplaces or digital channels, which makes it easy for a business owner to list his or her products on various channels at once. Feedonomics can help list, <a href="https://feedonomics.com/supported-shopping-platforms/bigcommerce/">optimize and manage your muiltichannel product listings</a>.</p>
<p>These other conduits will typically charge a small commission from the final sale for hosting the transaction.
</p>
<h4>How does multichannel benefit ecommerce businesses?</h4>
<p><strong></strong>Listing your products on multiple channels can be a major boost to your sales - companies who list on multiple channels typically earn more than those who limit selling to just one platform. Multichannel listing can help your business in two main ways:
</p>
<ol>
	<li>Ecommerce companies that list in multiple channels engage with more customers on a regular basis</li>
	<li>Consumers who interact with a company through more than one channel buy more than single-channel shoppers</li>
</ol>
<p>Data from Shop.org shows a lack of channel integration causes retailers to lose 2 to 4 percent of revenue (1).
</p>
<p>Multichannel listing also presents a unified and seamless payment experience for customers while keeping your inventory and order data organized through one central platform.
</p>
<p>1. <a href="http://freepdfhosting.com/2aac614f0b.pdf">"Multi-channel Retailing Goes Mainstream"</a>
</p>

Multichannel listing

There are a handful of different avenues online store owners use to sell their products.

What is multichannel listing and why is it important?

<p style="margin-top:3%;"><strong>Definition:</strong><strong> </strong>Third Party Logistics providers ("3PL") are utilized by many ecommerce businesses to oversee and manage their supply chain management. 3PLs specialize in optimizing the supply chain, allowing online stores to focus on marketing and other business operations.
</p>
<p>In today’s competitive business market, keeping costs down while increasing the speed and efficiency of a company’s logistics operations is imperative. The military was the first to coin the term 3PL, as it developed this method for efficiently transferring resources to areas where they are most needed. 3PL has continued to grow as the deregulation of interstate trucking reduced barriers to entry in the freight management industry.<span class="redactor-invisible-space"></span><br>
</p>
<h4>What exactly do 3PLs do for online businesses?</h4>
<p>Services offered by third party logistics
providers encompass more than just shipping. Some providers focus on specific
locales and geographies. With increased technological advances, many providers
have expanded their services by integrating shipping services with public and
contract warehousing as well as commodities and freight consolidation. A number
of firms also offer different types of freight transportation to customers.
</p>
<p>Technology is at the core of third party
logistics. Warehousing has grown from the simple storing of products to
focusing on optimized inventory control and the efficient provisioning of
goods. Companies that use third party logistics may offer additional services
including forecasts, in-depth reporting, transportation management software and
freight bill auditing.
</p>
<h4>The Globalization of 3PL
</h4>
<p>Many logistics providers have moved toward
globalization through organic growth and strategic acquisitions and mergers. By
expanding their reach worldwide, 3PL providers have enabled numerous businesses
to expand their own businesses to markets where it would previously have been
cost prohibitive to do so.
</p>
<h4>Will 3PL work for any size business?
</h4>
<p>A benefit of using a third party logistics provider
is that it can improve logistics operations for a business of any size.
Logistics providers can provide a business with as few or as many services as
are needed. For example, a smaller company may only require shipping or
warehousing of goods, while a larger company may want the provider to offer
them a bundle of services to manage their entire supply chain. Increased
efficiency in these areas allows a business to successfully grow while
effectively managing their bottom line.
</p>

A 3PL can help an online store grow and manage their spend efficiently.

What is a 3PL? Third Party Logistics and Ecommerce

<p><img src="{asset:1397:url}" style="float: left; margin: 0px 10px 10px 0px;">Inventory management is part of every business that creates and sells products. Ecommerce businesses operating online are no different.
</p>
<h4>What is inventory management?</h4>
<p><strong></strong><a href="https://www.linnworks.com/inventory-management-software">Inventory management</a> is part of the supply chain management process. It is the supervision and maintenance of all materials required to build and package ecommerce products to sell. Inventory management covers the entire lifespan of an item and its parts.
</p>
<p>For example, if an ecommerce business owner makes and sells scarves, inventory management tracks the arrival of the yarn, knitting needles and packaging materials from manufacturers. It then records where each individual stock item is stored in the ecommerce business's warehouse or storage facility. It monitors units available for use, units used and units needed as scarves are knitted and sent to buyers.
</p>
<p><em>"Inventory management covers the entire lifespan of an item and its parts."</em>
</p>
<p>Inventory management also tracks which stock items are pulled most frequently for use. If consumers continue purchasing purple scarves, more purple yarn will be pulled than any other color, requiring ecommerce owners to increase the amount of purple yarn ordered.
</p>
<p>Just-in-time inventory management refers to a method in which materials are received by the ecommerce business owner as they are needed.
</p>
<p>Materials requirement planning is a version of inventory management that uses sales forecasts to predict how many units of each stock item will be needed in the future, allowing ecommerce owners to schedule orders in advance as necessary.
</p>
<h4>How to accurately track and manage inventory</h4>
<p><strong></strong>Inventory management requires several components with which every ecommerce store owner must be familiar:
</p>
<h5>Identify stock items</h5>
<p><strong></strong>From manufacturing to point of sale, identify all materials and parts necessary to generate products consistently. Calculate how many items are needed to create and ship one single product.
</p>
<h5>Minimum stock level</h5>
<p><strong></strong>The minimum stock level is the smallest amount an ecommerce store has on hand of any one stock item. As soon as inventory reaches this level, it is time to reorder.
</p>
<h5>Define units of measure</h5>
<p><strong></strong>An efficient inventory management system has consistent units of measure that all personnel can recognize, understand and use. It saves time and produces more accurate inventory management if an ecommerce owner knows there are 100 knitting needles in one box. Rather than counting each needle, he or she only needs to count one box.
</p>
<h5>Calculate lead time</h5>
<p><strong></strong>Lead time is the amount of time it takes a supplier to deliver ordered inventory items. Knowing how long it takes has a large impact on timing reorders.
</p>
<h5>Understand product turnaround</h5>
<p><strong></strong>Turnaround refers to the time it takes stock items coming in to become finished products and reach the point of sale. Understanding this unit of measurement for each product available on an ecommerce site increases store owners' ability to order the correct inventory as needed over time. In addition, if the ecommerce store sells perishable items, a first-in, first-out system can be used.
</p>
<h5>Generate a purchasing plan</h5>
<p><strong></strong>Inventory management relies heavily on an ecommerce store's purchasing plan. A purchasing plan is the set of guidelines a business follows when it orders and reorders stock items necessary to create its products. This plan should coincide with a budget that the ecommerce business can support over an extended period of time.
</p>

Ecommerce How Tos

Efficient inventory management

Inventory management is part of every business that creates and sells products.

Accurate inventory tracking for ecommerce stores

<p><img src="https://www-cdn.bigcommerce.com/assets/answers/CRM-platforms.jpg" style="float: left; margin: 0px 10px 10px 0px;"><a href="https://www.superoffice.com/blog/what-is-crm/" target="_blank">Customer relationship management</a> is a large part of any successful business operation. In the online retail sector specifically, managing consumer information is part of the overall process of running a viable <a href="https://www.bigcommerce.com/">ecommerce platform</a>.
</p>
<h4>What is CRM?</h4>
<p><strong></strong>At its most fundamental level, CRM software allows your company to manage business relationships and organize the data associated with these partnerships. More specifically, a CRM platform stores both current customer and prospect information collected in one centralized location. A CRM solution will greatly enhance the internal visibility of your current operation and help you keep track of partnerships and potential sales opportunities on the back-end of business. If your ecommerce platform relies on other businesses to operate, a CRM platform can significantly help organize a plethora of customer information.
</p>
<h5>How will it impact your business?</h5>
<p><strong></strong>In addition to helping organize customer information and keep track of current sales opportunities, CRM systems also improve collaboration between employees. Since most CRM platforms are cloud-based, they can be accessed from nearly any location as long as you have a secure Wi-Fi connection. Some systems even have apps for <a href="https://www.bigcommerce.com/blog/smartphones-change-the-way-consumers-shop-have-you-adapted/" target="_blank">mobile device users</a>, so they truly are accessible from any location.
</p>
<p>As a result, more visible and organized data will help provide products and services your customers want. A CRM platform can benefit your online store in the following ways:
</p>
<ul>
	<li>Better develop an understanding of the customer</li>
	<li>Attract new customers </li>
	<li>Retain current customers</li>
	<li>Decrease customer management costs</li>
	<li><a href="https://www.mothercloud.com/" target="_blank">Integrate with an ecommerce platform</a></li>
</ul>
<p>From a business partnership perspective, working relationships are heightened because ecommerce companies with CRM platforms are able to more effectively <a href="https://www.bigcommerce.com/blog/customer-service-for-online-shoppers/" target="_blank">provide quality customer service</a>.
</p>
<h5>How does it impact the customer?</h5>
<p><strong></strong>CRM doesn't directly impact the customer because it's more of a business-facing tool. However, if you are able to understand and utilize CRM systems properly, your company - and its customers - will be the benefactors.
</p>
<p>There are four aspects of CRM that benefit the customer-relationship lifecycle:
</p>
<ul>
	<li><strong>Marketing:</strong> Your business can run campaigns and generate leads based on a current database of information, expanding on what you already have.</li>
	<li><strong>Sales: </strong>Your business not only can track its opportunities, but it can also use CRM platforms to assign, qualify and convert leads into sales. CRM helps track where the customer is in the buying cycle.</li>
	<li><strong>Orders:</strong> <a href="/essentials/features/">Inventory management</a> integrates with your ecommerce platform so you can have greater visibility on who you deliver products to and when. </li>
	<li><strong>Support:</strong> Provide high quality customer support service through case management and developing a deep knowledge base on what certain customers do and do not like.</li>
</ul>

CRM platforms

Customer relationship management is a large part of successful business operation.

CRM: What is it and how does it apply to your business?

<p style="margin-top:3%;"><img src="https://www-cdn.bigcommerce.com/assets/answers/Inventory-management.jpg" style="float: left; margin: 0px 10px 10px 0px;">Inventory is the amount of tangible goods, products or services you offer your customers. These goods are itemized and catalogued into an inventory management system.
</p>
<p>The goods that are recorded in a catalog can be either raw materials, goods that are in production or finished products. Ecommerce businesses most likely deal with the latter, or finished goods that are currently in their possession. Inventory is a portion of a company's assets that are either ready to order or will be ready for sale soon.
</p>
<h4>Why is inventory important?</h4>
<p><strong></strong>Product inventory is a tangible asset because it's a real-time evaluation of the revenue a company is generating. If an ecommerce store can't move product from it's inventory, it is clearly struggling to make sales and must adjust its operations, otherwise it won't obtain bottom-line revenue.
</p>
<p>Depending on the shelf life of some products, certain businesses have to move inventory much more quickly than others. Too much inventory in this instance will add to business expenses and reduce
</p>
<p>revenue. Conversely, an ecommerce company that doesn't have enough inventory runs the risk of losing out on potential sales and therefore overall market share.
</p>
<h5>How does inventory benefit ecommerce businesses?</h5>
<p><strong></strong>In addition to helping ecommerce store owners gauge how their products are selling, inventory management provides a number of other benefits to online retailers as well:
</p>
<ul>
	<li>Ecommerce companies manage order increases without overselling what's currently in stock</li>
	<li>Business owners keep product information current</li>
	<li>Decision-makers have more control over multichannel order flow</li>
	<li>Back-end visibility is improved with inventory management</li>
	<li>Data is better synchronized across all platforms in real time</li>
	<li>Overall product organization is improved though increased visibility</li>
	<li>Businesses don't run out of stock of items that are selling well or any other products</li>
	<li>Sales improve because the business is constantly aware of what it can and cannot sell at a given time</li>
</ul>
<p>Inventory is often the largest item a business has in its current assets, meaning it must be accurately monitored. Inventory is counted and valued at the end of each accounting period to determine the company's profits or losses.
</p>
<p>In the ecommerce sector, a day-to-day management of inventory helps increase business intelligence and visibility. Ecommerce business owners have better ongoing control when they have constant eyes on inventory.
</p>

Inventory management

Inventory is the amount of tangible goods, products or services a company offers to its customers.

What is inventory and how is it managed?

<p><img src="https://www-cdn.bigcommerce.com/assets/answers/Inventory-management-software.jpg" style="float: left; margin: 0px 10px 10px 0px;">As an ecommerce business owner, you'll have to familiarize yourself with logistics. Back-end supply chain management is a critical component of any business today, but that's especially the case in ecommerce. Since you don't have a brick-and-mortar storefront to house inventory, you have to rely on <a href="https://www.bigcommerce.com/blog/ecommerce-fulfillment/" target="_blank">third parties to help store and ship</a> your products and services. This is crucial for <a href="http://www.idcomlog.com/effectively-managing-time-e-commerce-entrepreneur/">basic time management</a> &mdash; and for your bottom line.</p>
<h4>What is logistics?</h4>
<p><strong></strong>Logistics is simply the management of the way resources are obtained, stored and shipped to their end destinations. The planning, execution and control of the movement and placement of these goods and services must all occur within a given system that's designed to achieve specific objectives, which may vary by industry.
</p>
<p>Taking a more macro view, logistics management entails a few steps:
</p>
<ul>
	<li>Locating and identifying potential suppliers and distributors</li>
	<li>Determining their accessibility and effectiveness in terms of business production</li>
	<li>Forming relationships and finding the most cost-effective solutions for your business</li>
</ul>
<p>Larger companies often work with multiple parties to keep pace with demand. However, your small business doesn't necessarily need to partner with different organizations to manage your ecommerce website logistics. If your operation is small enough, you can work with local businesses and organizations to ship and store your products.
</p>
<h4>What is the logistical process like for my business?</h4>
<p><strong></strong>Logistics on a small-business scale aren't overly complex. Once a customer completes his or her order on your website, the transaction will trigger any inventory software you have. As a retailer, most ecommerce platforms will have integrated <a href="https://www.bigcommerce.com/features/manage/">inventory management software</a>, so a completed payment will automatically adjust your inventory accordingly.
</p>
<p>Once you get the notification an order has been confirmed, <a href="https://www.bigcommerce.com/blog/ecommerce-shipping/" target="_blank">it's time to ship the product</a>. Depending on the size of your operation, the next steps could vary:
</p>
<ul>
	<li><strong>Home/office operation:</strong> If you're running your website from your home or a separate office and store inventory there, all you have to do it package the product and send it to the buyer. This is a great option for newer and small businesses because they save money on overhead by not having to outsource their warehouse management to a third party.</li>
	<li><strong>Brick-and-mortar retailer:</strong> If you own a storefront location and have the room to store the products you sell online there, the same principle applies as above. Just pack up the product and send it to the awaiting customer. </li>
	<li><strong>Outsourced logistics</strong>: If your operation is large enough to <a href="https://www.bigcommerce.com/blog/six-services-every-scaling-small-business-should-outsource/" target="_blank">outsource your online operation logistics</a>, you'll likely have to sync your platform with the third party you partner with. That way, once a customer makes a purchase, the distribution center will know and they can send the package out quickly. This hands-off approach is well organized and eases the stress of shipping so you can focus on other aspects of your website.</li>
</ul>
<h5>Can you track items on the back end?</h5>
<p><strong></strong>Yes. Since logistics has become so complex and reliant on digital technology, there are options for you to keep tabs on your inventory and where it is in the supply chain. <a href="/essentials/features/manage/inventory-management/" target="_blank">Inventory management solutions</a> within your ecommerce platform give you visibility into how much of a given product you have left. Inventory management tools give you real-time insight into your products so you're never behind on customer orders.
</p>
<p>If your business partners with a service like UPS, FedEx or the USPS, you can also track items based on the fulfillment numbers they provide. Once the product leaves your hands, it may be a good idea to keep tabs on certain orders to make sure they reach the customer. It's also an industry best practice to provide the same tracking numbers to customers in their confirmation email so they can keep track of where their package is.
</p>

Inventory management software

As an ecommerce business owner, you'll have to familiarize yourself with logistics.

What is logistics and how does it apply to ecommerce?

<p><img src="https://www-cdn.bigcommerce.com/assets/answers/Rush-shipping.jpg" style="float: left; margin: 0px 10px 10px 0px;">Having various order and shipping options has gone from a luxury to an expectation for online shoppers. As large chains have popularized one or two-day free delivery, all ecommerce stores have an incentive to offer comparable options. Offering a rush order option is a great way to encourage customer satisfaction and increase sales, but it isn't a viable option for every store.
</p>
<p>Rush orders are purchases of goods that need to be processed and delivered by a certain date that is much sooner than the standard arrival date. This adds strain on the business and its ecommerce partners that make up its supply chain. Most of the increased pressure is put upon the people processing the orders and shipping the items. However, if the business doesn't have enough of the item, then the entire supply chain can be affected.
</p>
<p>Customers who need items last minute or want to get their products right away want rush orders. These orders are especially common around the holidays when customers need to have the products before a certain date. The prioritization of orders is key to ensuring items are delivered on time. Ecommerce store owners will need to know their shipping partner's options and capabilities and know if they can handle the orders. This will allow them to offer customers the best shipping option to complete a rush order.
</p>
<h4>Pros of rush orders</h4>
<p><strong></strong>There are a few compelling reasons to offer rushed orders, including:
</p>
<ul>
	<li><strong>Satisfaction</strong><br>Customers are happy with how fast they get the product. Customers usually choose to rush an order because they need product quickly. When you deliver on time, you make them happy. </li>
	<li><strong>Retention</strong> <br>Happy customers come back. The customer's satisfaction with the speed in which they were shipped the product encourages them to return. This is good for business because it's cheaper to retain a customer than it is to acquire new ones.</li>
	<li><strong>Increased revenue </strong><br>When you're satisfying and keeping customers, you'll have more orders coming in and therefore, more revenue. </li>
</ul>
<h4>Cons of rush orders</h4>
<p><strong></strong>Rush orders do have a few downsides, including:
</p>
<ul>
	<li><strong>Difficult execution</strong><br>It's simply more difficult to get the product to the customer when they want it fast. The order has to be processed, packaged and shipped in a much shorter time, which is harder to execute. The order has to be the priority at all points of the supply chain. This has to be communicated to every level and executed. </li>
	<li><strong>Expensive</strong><br>Rush orders cost more to process and ship because they are on a shorter timescale. This means your shipping partner will have to reprioritize its shipping orders to ensure items are delivered on time. Additionally, you'll have to pay your ecommerce partners that manufacture and produce your products more, due to the shortened time scale if you don't have the product in stock.</li>
	<li><strong>Diverts focus</strong><br>The Houston Chronicle reported that rush shipping also pulls ecommerce store owners and employees' focus <a href="http://smallbusiness.chron.com/urgent-shipment-disadvantages-74735.html" target="_blank">away from other opportunities</a> and tasks. Rush orders take a significant amount of effort and that time could be spent on other things.</li>
</ul>
<h4>Are rush orders right for you?</h4>
<p><strong></strong>Rush orders aren't right for every business. Subscription-based ecommerce businesses, for example, won't benefit from it because they are shipping things on a regular basis. Their customers are paying for a certain amount of product per a specific amount of time, so rushing the order process and shipment of those products won't typically help. But for most other business types, like online clothing stores or promotional item retailers, rush orders could increase customer satisfaction by getting the products to the consumer faster.
</p>
<p>First, ask yourself it you can afford to accommodate rush shipping. Remember, the cost of rush orders has to come from somewhere. Either your business is going to take a hit, or your customers are going to be paying extra money for it. You have to account for added overhead expenses as well as more expensive production and shipping.
</p>
<p>If you decide you can afford to accommodate rush orders, it's time to think about your customers. Will they use rush orders? Will they pay extra for the convenience? You can find out these answers through market research or by testing rush orders. Look to see what your competitors are doing. If they offer it, you probably should, too. Otherwise, you'll be missing out on a number of sales. A good first step to offering rush orders is to provide it to some of your loyal customers. If it's a success, then consider offering it to all customers.
</p>
<p>Offering a rush order option is great for the customer, but it puts a strain on business because of the shortened timescale. That doesn't mean you should forego rush orders as an option, though. It simply means you need to be ready for that extra strain. If you're not prepared, you may miss the delivery dates you originally promised your customers. If you can't deliver the products in the amount of time specified or can't afford to do so, it's better to not give customers that option. Offering the service and then not delivering on time will hurt your reputation.
</p>
<p>Not all rush shipping is the same. Some shipping companies consider rush shipping to be one-day, and others view rush shipping as two days. It depends on the vendor you're using. Before offering rush orders to your customers, make sure you completely understand how long it will take. FedEx and UPS have specially designed systems that provide rushed or expedited shipping to ecommerce owners. The prices vary depending on how heavy the item is, where it's being shipped and if one or two day delivery is needed. USPS also has a rush shipping option called USPS Express, but it <a href="http://mywifequitherjob.com/what-is-the-cheapest-shipping-option-usps-fedex-or-ups/" target="_blank">isn't always reliable</a>, according to Mywifequitherjob.com
</p>
<h4>Consider offering free regular shipping as well</h4>
<p><strong></strong>Many ecommerce stores <a href="http://www.bigcommerce.com/ecommerce-answers/why-offer-free-shipping-how-to-turn-a-profit-from-this-popular-perk">offer free regular shipping</a>. You can add the extra cost into your products, or you can choose to set a spending limit to qualify for free shipping. For example: If customers spend $50 or more, they can have access to free regular shipping.
</p>
<p>The same can go for discounts on rush orders. If customers make a large enough purchase, you could allow them to qualify for a discount on rush shipping. When implementing rush orders, make sure customers fully understand what they will be charged and how and when their purchase will arrive.
</p>
<p>The bottom line is if you can afford offer rush shipping, you should. Before you provide your customers with that option, however, makes sure you and your business partners have the ability to provide the service to your customers. If they can't, find a shipping partner that will.<br>
</p>

Rush shipping

Having various shipping options has gone from a luxury to an expectation for online shoppers.

How to determine if rush shipping is right for your business

<h4>Just in time for the holidays: deliver valuable brand engagements with post-purchase journeys</h4><p>We’re about to go into what is the busiest time of year for most online retailers, and so the latest addition to the dotdigital integration for BigCommerce merchants couldn’t be better timed.</p>
<p>From October 21st all BigCommerce merchants with dotdigital Engagement Cloud accounts can access a library of beautifully branded transactional email templates, pre-loaded with code that personalizes the content for that recipient and order.&nbsp;
</p>
<p>“<i>What is transactional email”,</i> we hear you ask? In essence, this could be any communication that is triggered by an important store event. For example, when a new account is created or when an order is made. Black Friday and the holiday seasons that follows is a great opportunity to acquire new customers. Keeping them engaged and driving that loyalty-inducing next purchase, is a different matter. And this is where post-purchase marketing comes in. Keep reading as we dive into the often overlooked world of transactional email below.
</p>
<h4>Why does transactional email matter?
</h4>
<p>Marketing for ecommerce success is about more than getting your customer to cart. To be a successful marketer and drive repeat purchases, you must consider the whole customer lifecycle. After all, it is more cost effective to retain customers than to just attract new ones. This is where post-sale marketing and building lasting relationships with customers really comes into play. The emails that your customers are sent automatically to provide them with order updates are another brand touchpoint. All too often these are not in-sync with your other communications, and off brand. You get the point - not putting your best foot forward after you’ve won them over doesn’t leave a good or a lasting impression.&nbsp;
</p>
<p>Done well, transactional emails can have a huge impact on how your customers perceive the service you’ve delivered to them, plus it’s an opportunity to stand out from the rest, with an increase in loyalty and customer lifetime value as the result.
</p>
<p><b>Now, it’s</b> <b><i>that </i></b><b>easy.</b>
</p>
<p>Making your automatic transactional emails beautifully branded can often slip to the bottom of a priority list for many marketers. Especially when there are so many to create. It can feel like a nice to have, and most marketers know they should do something about it, but it’s typically time-consuming to address. Until now.
</p>
<p>With dotdigital’s transactional email manager, you’re just a few clicks away from sending beautiful post-purchase campaigns that deliver.
</p>
<ul><li>You’ll be asked to upload your logo, brand colors and font, and footer copy. That’s all we need.
</li><li>Next, you get to select which types of emails you want to trigger.&nbsp;
</li><li>And that is it! You can preview the templates, customize them even further, or setup a different campaign to trigger in that event altogether.&nbsp;
</li><li>One last thing, so that customers don’t get duplicate emails at each stage, you’ll probably want to<a href="https://support.bigcommerce.com/s/article/Customizing-Emails#toggle"> disable the automatic emails</a> being sent out by BigCommerce. All transactional emails sent via Engagement Cloud use our dedicated highest reputation delivery systems managed by our in-house team of deliverability and delivery experts. This ensures the best inbox placement and delivery rates, with over 90% of emails being delivered within one minute.
</li></ul>
<h5>Tips and trick for creating personalized experiences with post-purchase emails
</h5>
<p>Turn transactional emails into another valuable opportunity to delight your customers, highlight complementary products or services, and deliver better end-to-end experiences altogether.
</p>
<ul><li>Say Thank You. This seems obvious, but <i>how </i>you say it can make a difference. This is where you can great creative with messaging and imagery.
</li><li>Actions speak louder than words. Say Thank You with a coupon code that they can redeem against their next order.
</li><li>And finally, transactional emails are a great place to tell customers how your support team is always-on. Remind them of service hours, and where to speak to someone over live chat if you offer this line of communication.</li></ul><p><span></span></p>
<p><b><em>About dotdigital for BigCommerce&nbsp;</em></b>
</p>
<p>dotdigital is a leader in omnichannel marketing automation technology. dotdigital’s Engagement Cloud is the platform of choice for businesses seeking to engage customers across all touchpoints. The platform’s features empower 4,000+ brands across 150 countries to acquire, convert, and retain customers. Users can connect customer data, surface powerful insights, and automate intelligent messages across email, SMS, social, and more. dotdigital is a global company with over 350 employees, serving companies of all sizes and in all verticals for over 20 years.
</p>
<p>dotdigital Engagement Cloud for BigCommerce brings customer engagement to the forefront. So you can work faster, smarter, and achieve greater results. The joint forces of BigCommerce and dotdigital unlock the full potential of your store-side data. Deliver intelligent marketing messages to more shoppers, that will keep them coming back.
</p>
<p>To learn more about dotdigital for BigCommerce, visit:<a href="https://dotdigital.com/integrations/bigcommerce" target="_blank">https://dotdigital.com/integrations/bigcommerce</a></p>


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Why does transactional email matter?

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