Ecommerce companies with high volumes of small orders need to be extremely efficient so that profits are not eroded by operational costs. If you can get through the initial pains of the implementation process, warehouse automation is a great operational advantage in this regard. But, you may find the ROI of automation to be underwhelming if it’s not completely integrated with your WMS. After all, since your WMS tracks and manages everything going on in the warehouse, it should also be facilitating the overall direction of your automated processes. When your WMS is synergized with strong automation strategies, you can significantly improve operational efficiency in the following areas:
Efficient automation will cut back on manual steps in the fulfillment process, allowing you to process more orders with less staff. However, a WMS with built-in labor management features will be required to orchestrate, schedule, measure productivity, and track labor costs across all operations.
As mentioned above, automation will speed up order fulfillment in general. A WMS will give you visibility into the production line and processes behind incoming product, put-away, picking, shipping, and returns. Together, you get the data needed to plan for the best use of your automated systems – pushing efficiency even further.
Warehouses that rely more on manual processes than software or automation may have an order accuracy rate of 98% or lower. The day-to-day revenue loss may seems small, but it builds over time. With a WMS providing direction and automation taking action, you can expect to maintain 99.99% order accuracy.
Automation uses and provides inventory data while WMS provides data tracking, reporting, and planning features. Combined, they give you the necessary tools to enable real-time processing, eliminate errors with inventory locations, and make that information available to personnel in and outside of the warehouse.
At some point, every ecommerce business asks itself, "is it time to partner with a 3PL provider?" The answer depends on several variables such as your long-term business goals, availability of internal resources, and your level of operational efficiency. Every business has different needs and priorities, so 3PL partnerships aren't the best answer for everyone. However, if you find yourself dealing with any of the following challenges on a regular basis, it may be time to bring in a 3PL provider.
Third-party logistics and fulfillment providers are among the best strategic options for helping ecommerce retailers (especially new ones) efficiently set the stage for rapid growth and/or improvement of services. Since 3PL providers already have robust distribution networks established, they can often help clients ship products to more customers, faster and at reduced cost.
In some cases, partnering with a 3PL provider is a better alternative than investing in new facilities or technology. For example, upgrading to a new order processing system or adding new equipment to an already-full warehouse may require enormous amounts of time and capital to implement properly. However, 3PLs have already gone through those processes – and fine-tuned the results to accommodate the needs and demands of their clients.
Order fulfillment is a complex and demanding aspect of ecommerce. If you find yourself already stretched thin with marketing, merchandizing, customer service, and other initiatives that are critical to the success of your business, outsourcing to a 3PL provider can help you keep your focus on those areas rather than managing fulfillment.
Contextually relevant features and content can make ecommerce customer experiences more memorable – helping you stand out from the competition. To help you put together a strategy that leverages user data to deliver dynamic product recommendations, user-centric messaging, and convenient shopping and purchasing processes, consider these tips and examples for making your ecommerce site more unique and personalized.
Add search customization options
The search bar on your ecommerce site is supposed to help your customers find products. But for some customers, a basic list of products doesn't provide enough information to make a purchasing decision. Personalization features like detailed search parameters (e.g. category inclusion/exclusion, price ranges, SKU variant inclusion/exclusion, etc.) and result-sorting options (e.g. by price, by review score, by popularity, etc.) lessens the burden of research for your customers and improves your site's user experience.
Enhancing product discoverability
To increase the effectiveness of product suggestions across the site (i.e. search results, "you may also like" recommendations, etc.), make sure that you are tracking how customers browse products and use the search bar on your site. For example, by mining your site’s search data, you can learn more about what your customers are interested in and the language they use to find it. This can be very helpful in merchandising, discovering changes in customer priorities, or simply improving onsite search functionality.
Personalize for users' preferred device
Does your website provide shopping experiences that are tailored to different screen sizes, user inputs, and browsers? Consider how you can design elements or consolidate navigation to make them fast loading and tap-friendly for smartphone and tablet users.
A warehouse management system (WMS) is software that is designed to support and optimize multiple elements of warehouse operations and distribution center management. As a major component of enterprise resource management, most types of WMS are comprehensive solutions that streamline warehouses' abilities to manage, record, measure, and concatenate:
- Order volume
- Inventory reorder levels
- Shipment schedules
- Delivery status
- Shipping history
- Sales data
- Marketing reports
- and more – all in real-time
Now typically, WMS implementation is customized to the unique requirements of an ecommerce business or fulfillment center's supply chains and/or distribution channels (especially when the related workloads are too large to reliably deal with via spreadsheets or other forms of manual input). In other words, they've traditionally been utilized by very large and complex operations. According to a study from the Warehousing Education and Research Council (WERC), 35% of the fulfillment centers surveyed said they currently do not use a WMS. But like all technology, WMS’s are becoming more affordable even for small-to-medium-sized ecommerce businesses thanks to the increasing variety of, not only providers, but WMS service structures like subscription, cloud-based, and Software as a Service (SaaS) models.
So, WMS are relevant to more businesses than ever before. How can you tell if it’s worthwhile for your business to adopt a WMS? It depends on your long-term performance goals, current operational pain points, and what WMS features you'd use to address them. If your facilities are challenged by any of the following, it may be time to seek help from a WMS vendor:
Less than 99% inventory/order accuracy: More errors in your fulfillment operations equals more returns, chargebacks, and lost revenue. The accuracy and insight provided by a WMS could remedy these issues.
Inefficiencies with warehouse space utilization or picking systems: Many WMS solutions include slotting optimization features that are especially helpful for growing/evolving inventories.
Rising operational costs: WMS's streamline multiple fulfillment processes – contributing to time and cost savings.
Typically, credit card chargebacks are so few and far between that most ecommerce merchants feel they aren't worth the hassle of disputing. Unfortunately, when that mindset persists, it exposes the business to continuous losses via chargeback fraud (i.e. when consumers initiate unwarranted credit card chargebacks for items they knowingly purchased in an attempt to avoid paying for them.)
While it’s true that the work involved is time consuming, disputing chargebacks with consistency is important limiting financial losses over time. Establishing step-by-step guidelines can greatly reduce the burden of disputing chargebacks. But, creating these procedures requires some due diligence on your end. To start, you should understand what merchants’ rights are extended to you by each of the credit issuers you work with. Visa, Mastercard, et. al., have rules in place that, when adhered to, grant rights and protections to merchants in chargeback disputes.
The rules and regulations from credit card issuers often place a burden of proof on either the merchant, the customer, or both. For example, let's say Visa has a rule in place that a customer cannot file a chargeback unless they have attempted to return the item. The customer would need to provide proof of return. Merchants should make sure that each transaction is thoroughly documented (ID verification during checkout, delivery confirmation, etc.) so they can easily provide supporting evidence when filing a dispute.
Essentially, by thoroughly understanding your merchants’ rights and meticulously recording all the relevant transaction information, you’ll have the foundation necessary to streamline chargeback disputes so they take up less of your time – and money – over the long run.