Shipping is a crucial component of e-commerce, and with the rise of online shopping, it has become increasingly crucial for businesses to ensure that their products are delivered to their customers on time and in good condition. However, sometimes shipping can go wrong, and one of the most common issues that can occur is an invalid destination address.
In this article, we will explore what an invalid destination address is, why it matters, and what you can do to prevent it from happening. We will also discuss how working with a partner like eHub can help you avoid these types of issues and streamline your shipping processes.
What is an Invalid Destination Address?
An invalid destination address is simply an address the carrier cannot recognize. This can occur for various reasons, such as missing or incorrect information, typos, or outdated information. When a carrier cannot recognize an address, it will typically return the package to the sender or hold it at a distribution center until the correct address can be provided.
Why Does an Invalid Destination Address Matter?
An invalid destination address can have significant implications for both the sender and the receiver. For the sender, it can result in additional costs, as they may be required to pay shipping and handling fees for the return of the package. Additionally, it can lead to delays in delivery and potentially even lost or stolen packages. For the receiver, it can be frustrating and inconvenient not to receive their package on time, leading to negative reviews and a loss of future business.
How Can You Prevent an Invalid Destination Address?
There are several steps that you can take to prevent an invalid destination address from occurring in the first place. One of the most important things you can do is to double-check all of the information that you provide when filling out the shipping label. This includes verifying the recipient’s name and address, as well as any additional instructions that may be required for delivery, such as apartment or suite numbers. It’s also essential to ensure the address is up-to-date and accurate, as outdated information can lead to delivery issues.
Another way to prevent an invalid destination address is to work with a partner like eHub. eHub’s network of vetted carriers ensures that all shipping addresses are verified and validated before a package is sent out. This helps to reduce the likelihood of an invalid address and provides peace of mind to both the sender and the receiver.
How Can a 3PL Help with when this happens?
Working with a 3PL partner like eHub can offer several benefits regarding invalid destination addresses. First and foremost, eHub’s network of carriers can help to identify and correct any potential issues with shipping addresses before they become a problem. This can include verifying the address, checking for typos or missing information, and ensuring all necessary information is included on the label.
In addition to address verification, eHub’s network of carriers can also provide real-time tracking and monitoring of shipments. This means that if there are any delivery issues, eHub can quickly identify the problem and work with the carrier to resolve it. This can help to minimize delays and ensure that packages are delivered on time and to the correct address.
Conclusion
An invalid destination address can be a frustrating and costly problem for e-commerce businesses. However, by taking the necessary steps to prevent it from occurring and working with a partner like eHub, you can reduce the likelihood of these issues and streamline your shipping processes, not to mention the headache and frustration the customer has to deal with on their end.
With eHub’s network of vetted carriers and real-time tracking and monitoring, you can have confidence that your packages will be delivered on time and to the correct address every time.
Introduction: 2nd Day Air UPS
Have you ever found yourself in a situation where you’ve impulsively planned a spontaneous getaway? Perhaps you’ve suddenly decided to surprise your loved ones with a weekend trip, or maybe an opportunity for a last-minute vacation has unexpectedly presented itself. Or, possibly worst of all, you procrastinated getting that special birthday or anniversary gift. In these moments, time is of the essence, and you need a reliable shipping service to ensure your essential items or gifts arrive on time. That’s where 2nd Day Air UPS comes to the rescue!
The Need for Speed
When it comes to last-minute adventures, time is your most precious commodity. With 2nd Day Air UPS, you can count on timely delivery to meet your urgent requirements. Picture this: You’ve just booked a spontaneous trip to a tropical paradise. You’ve talked about taking this trip for years, but the stars never seemed to align until now, and tickets were even on sale! As you pack your suitcase, you suddenly realize in your rush that you’ve forgotten to purchase some much-needed snorkeling gear and beachwear essentials!
Panic sets in, but fear not! With 2nd Day Air UPS, you can quickly order the items online and deliver them directly to your hotel, ensuring that your vacation plans aren’t compromised. No more worrying about being the only person on the beach without a snorkel!
Peace of Mind Gained With 2nd Day Air UPS
While the excitement of a spontaneous trip can be exhilarating, it’s essential to have peace of mind, knowing that everything is taken care of. Using 2nd Day Air UPSprovides a sense of reassurance that your package will be delivered promptly and reliably.
Consider another example: Imagine you’re a business professional who has just received a last-minute invitation to attend an industry conference. It’s a fantastic opportunity, but there’s one catch—you urgently need your company’s marketing materials and product samples at the event. The conference is only two days away, and you’re concerned about the logistics of shipping the items on time. This is where 2nd Day Air UPS comes to the rescue. By opting for this service, you can ship your materials with confidence, knowing that they will reach the conference venue swiftly.
This allows you to focus on preparing your presentation and networking instead of worrying about the safe arrival of your essential business items. With 2nd Day Air UPS, you can stride into the conference feeling prepared, professional, and ready to make a lasting impression.
It’s worth noting that FedEx offers a similar service, and we go in-depth to compare them HERE.
Reliability and Tracking
One of the key benefits of using 2nd Day Air UPS is the reliability of their services. When you require last-minute shipping, you want to be confident that your package will be handled carefully and delivered on time. UPS has a proven track record of providing efficient and dependable service, giving you peace of mind throughout the shipping process. Additionally, UPS offers robust tracking capabilities that allow you to stay informed about the whereabouts of your package. From the moment it leaves the sender’s location to its final destination, you can easily track its progress online. This real-time tracking feature enables you to plan accordingly and ensures that you’re aware of the expected delivery date.
Whether you’re anxiously awaiting your business documents or eagerly anticipating the arrival of your event equipment, the ability to track your package provides an extra layer of convenience and assurance.
Conclusion
When spontaneity strikes and you are caught up in a last-minute adventure or business trip,2nd Day Air UPS is your trusted ally in ensuring a stress-free experience. Whether it’s forgotten items for your vacation, essential business materials, equipment for a charitable event, or even a last-minute gift, this shipping service delivers convenience, reliability, and peace of mind. With the ability to rely on the prompt delivery of your package, you can embrace your spontaneous plans without any added worries.
So, the next time you’re hit with a spur-of-the-moment trip or unexpected business opportunity, remember the convenience of 2nd Day Air UPS and embark on your adventure worry-free!
When it comes to shipping and logistics, dunnage is a term that is often used but not well understood. Simply put, dunnage refers to materials that are used to secure and protect goods during transportation. While it may seem like a small detail, the proper use of dunnage can make a big difference in the safety and integrity of the products being shipped.
To better understand the definition of dunnage, imagine it as a shield that protects your precious cargo during the journey to its destination. Like a shield, dunnage needs to be strong enough to withstand the rigors of transportation and prevent damage to your products. It also needs to be tailored to the specific needs of your products so that it can provide the right level of support and protection.
Many different materials can be used as dunnage, including foam, cardboard, and plastic. Each material has its own strengths and weaknesses, and the choice of dunnage will depend on factors such as the weight and fragility of the products being shipped, as well as the mode of transportation and the length of the journey.
Common Usage
A few examples of the different types of dunnage that are commonly used and their specific application include:
• Airbags: inflatable bags used to brace cargo and prevent movement during transport
• Foam inserts: used to create custom-fit cavities for delicate or irregularly shaped items
• Corrugated sheets: placed between layers of stacked goods to prevent shifting and protect against damage
• Dunnage bags: similar to airbags, but filled with compressed air and used to brace cargo against walls or other fixed surfaces
• Pallets: wooden, plastic, or metal platforms used to elevate goods off the ground and enable easy handling with forklifts or pallet jacks
• Slip sheets: thin sheets of plastic or cardboard used as an alternative to pallets to move goods within a warehouse or transport container
• Void fillers: materials such as packing peanuts, paper, or bubble wrap used to fill empty spaces in a container and prevent goods from shifting during transport
• Strapping: used to secure goods to pallets or to each other to prevent movement or shifting
• Dunnage racks: metal or plastic racks that separate and organize goods within a container or trailer.
In Safe Hands
One of the key benefits of working with a 3PL partner who understands dunnage is that they can help you select suitable materials and design a custom solution that meets the specific needs of your products. This can be especially important when shipping fragile or high-value items that require extra care and attention.
For example, imagine that you are shipping a set of delicate glass sculptures. Without the proper dunnage, the sculptures could be jostled around during transportation and break into a million pieces. However, with the right combination of foam padding and cardboard inserts, the sculptures can be securely placed and arrive at their destination intact.
Of course, selecting the right dunnage is only one part of the equation. Proper installation and placement are also crucial to ensure the dunnage works effectively. This is where the expertise of a 3PL partner can really come in handy.
Experience Goes a Long Way
Experienced 3PL partners will know exactly how to install and place dunnage in a way that maximizes its effectiveness. They will also be familiar with the different regulations and guidelines that govern the use of dunnage and can ensure that your shipments are in compliance with these rules.
In addition to providing expert advice on dunnage, 3PL partners can also offer a range of other services that can help to streamline your shipping and logistics operations. For example, they may be able to offer warehousing and inventory management solutions or help you optimize your supply chain to reduce costs and improve efficiency.
Wrapping Up
Working with a 3PL partner who understands dunnage can be an essential part of your overall logistics strategy. By choosing suitable materials and installation techniques, you can ensure that your products arrive at their destination in the same condition as when they left your facility. This can not only help to protect your brand reputation but also save you money on costly product returns and replacements. Not to mention, it can be very disappointing as a customer to receive a package that they’ve been anticipating only to have it arrive damaged because of improper shipping.
In conclusion, dunnage may seem like a small detail in the grand scheme of shipping and logistics, but it can make a big difference in the safety and integrity of your products. By working with a 3PL partner who understands dunnage, you can ensure that your shipments are adequately secured and protected, no matter how far they need to travel. So, the next time you’re shipping valuable cargo, remember the importance of dunnage and its role in protecting your products.
Working with a third-party logistics (3PL) provider can be a game-changer for merchants looking to streamline their supply chain and focus on growing their business. However, for those who have never worked with a 3PL before, it can be daunting to know where to start. In this article, we’ll answer some of the most common questions merchants have when considering working with a 3PL.
How much does it cost to work with a 3PL?
The cost of working with a 3PL can vary widely depending on factors such as the size of your business, the complexity of your supply chain, and the specific services you require. Some 3PLs charge a flat fee for their services, while others charge based on the volume of orders they process or the storage space they require.
It’s important to carefully review a 3PL’s pricing structure to ensure it aligns with your business needs and budget. Some 3PLs offer a range of services that can be customized to meet your specific needs, while others may require you to sign a long-term contract.
Do 3PLs have monthly minimums?
Many 3PLs do have monthly minimums, which means that you’ll need to meet a specific volume of orders or storage space requirements each month to maintain your relationship with the provider. This can be a good thing, as it ensures you’re getting value from the service and encourages you to focus on growing your business.
However, it’s essential to carefully review the minimums required by any potential 3PL to ensure they are realistic and achievable for your business. If you’re starting out or are in a period of slow growth, you may want to look for a 3PL that has lower minimums or offers more flexibility in its pricing structure.
How much hand-holding will a 3PL give me?
The level of support you receive from a 3PL can vary widely depending on the provider and the specific services you require. Some 3PLs offer a high level of support, with dedicated account managers and frequent communication, while others take a more hands-off approach.
When evaluating a 3PL, it’s essential to understand how much support they offer and how responsive they are to your needs. Look for a provider that has a reputation for excellent customer service, and that is willing to work closely with you to understand your business and help you achieve your goals.
Is it better to have a 3PL closer to me or closer to my customers?
The answer to this question depends mainly on your business and supply chain requirements. If you need to receive products from suppliers quickly, it may be advantageous to work with a 3PL that is located close to your business. On the other hand, if you ship a large volume of products to customers in a specific region, it may make more sense to work with a 3PL that has a facility in that area.
Ultimately, the goal should be to find a 3PL that can provide the services you need at a competitive price, regardless of their location.
How automated are 3PLs? Will I have to do a lot of manual input on my end?
The level of automation offered by a 3PL can vary widely depending on the provider and the specific services you require. Some 3PLs use advanced technology to automate much of the order fulfillment process, while others rely on manual processes.
When evaluating a 3PL, it’s essential to understand how automated their processes are and how much manual input will be required on your end. Look for a provider that has invested in advanced technology and can offer a high level of automation to help streamline your supply chain.
Can a 3PL help me get a product through customs or act as the importer on file?
Yes, many 3PLs offer customs brokerage services and can act as the importer on record for your shipments. This can be a valuable service for merchants importing products from overseas and want to ensure that their shipments clear customs quickly and smoothly.
When evaluating a 3PL, it’s essential to understand their experience with customs brokerage and their ability to handle any issues that may arise during the import process. Look for a provider that has a proven track record of success in this area and that can provide references from other clients who have used their customs brokerage services.
How does insurance work with a 3PL? Do I need to have my own insurance on my products, or does their insurance cover everything?
Most 3PLs carry insurance to cover damage or loss of your products while they are in their care. However, the specific details of their insurance coverage can vary, so it’s essential to understand what is covered and what is not.
In many cases, it may be necessary for you to carry your own insurance to cover any potential gaps in the 3PL’s coverage. This can include things like product liability insurance, which can protect you if one of your products causes harm to a customer.
When evaluating a 3PL, be sure to ask about their insurance coverage and what types of insurance you may need to carry to ensure that your products are fully protected.
How long does it take to onboard with a 3PL?
The onboarding process with a 3PL can vary depending on the provider and the specific services you require. In general, however, you can expect the onboarding process to take several weeks to a few months.
During the onboarding process, you will typically work closely with your 3PL to provide them with the information they need to manage your supply chain effectively. This may include things like product information, order history, and shipping requirements.
When evaluating a 3PL, be sure to ask about their onboarding process and what you can expect regarding timelines and requirements.
If there are lost packages, who is responsible for finding them and working with the customer?
If a package is lost or damaged while in the care of a 3PL, the responsibility for finding and resolving the issue will typically fall on the 3PL. However, it’s essential to review the specific terms of your contract to understand what is covered and what is not.
When evaluating a 3PL, be sure to ask about their policies for lost or damaged packages and how they handle customer inquiries and complaints. Look for a provider with a proven track record of resolving issues quickly and efficiently.
What levels of shrinkage and accuracy are normal?
Shrinkage and accuracy levels can vary widely depending on various factors, including the specific industry you are in, the complexity of your supply chain, and the quality of your products.
In general, a well-run 3PL should be able to achieve accuracy levels of 99% or higher with low levels of shrinkage. However, it’s essential to review the specific performance metrics of any potential 3PL to ensure they meet your expectations.
When evaluating a 3PL, be sure to ask about their performance metrics and how they track and report on their performance. Look for a provider that is transparent about their performance, and willing to work closely with you to improve their processes continually.
Conclusion
Working with a 3PL can be a great way to streamline your supply chain and focus on growing your business. However, it’s essential to carefully evaluate potential providers to ensure that they can meet your specific needs and budget.
When evaluating a 3PL, be sure to ask about their pricing structure, minimum monthly requirements, and the level of support they can provide. Consider the location of the 3PL in relation to both your business and your customers, as well as the level of automation they offer and their experience with customs brokerage.
It’s also essential to understand the insurance coverage provided by the 3PL and any gaps that may need to be covered by your own insurance. Finally, be sure to review the onboarding process, policies for lost or damaged packages, and performance metrics to ensure that the 3PL is meeting your expectations.
By carefully evaluating potential 3PL providers and choosing the right partner for your business, you can enjoy the benefits of a streamlined supply chain and focus on growing your business with confidence.
At no cost, we will do the leg work that requires merchants to invest hundreds of hours in finding a 3PL or Fulfillment Center that genuinely meets their needs and requirements. We verify every partner by checking references, touring warehouses, verifying pick pack accuracy and customer visibility, and ensuring customer service is a top priority. With all of the hours we have spent carefully selecting top-tier fulfillment centers to bring in as partners, we can line up your business needs with a highly recommended partner.
I. Introduction
In today’s global economy, supply chain management is a critical factor for the success of any business. A well-managed supply chain can help businesses to reduce costs, increase efficiency, and improve customer satisfaction. To achieve these goals, many businesses are turning to third-party logistics providers (3PLs). In this section, we will provide an overview of 3PLs, their importance in supply chain management, and finally, what to look for in a 3PL.
We recognize that searching for the appropriate 3PL can be an intimidating and time-intensive process. With a variety of choices, each with its own unique expertise and focus, it’s critical to select the appropriate provider as it significantly influences the future success of your business.
An ideal 3PL partner should alleviate the burden of logistics operations and allow you to focus on enhancing your products and brand.
II. What is a 3PL?
A third-party logistics provider, or 3PL, is a company that provides logistics services to businesses. These services include transportation, warehousing, inventory management, and other supply chain activities. 3PLs typically operate as intermediaries between businesses and transportation companies, helping to coordinate the movement of goods from one place to another. There’s no shame in brushing up on 3PLs before making a decision.
III. What to Look For in a 3PL: Supply Chain Management
When determining what to look for in a 3PL that will best suit your operations, there are several important factors to consider, including:
Expertise and Industry Knowledge: 3PLs have extensive knowledge and experience in the logistics industry, including regulatory compliance, transportation management, and supply chain optimization. This expertise can help businesses to streamline their operations and reduce costs.
Scalability: 3PLs can help businesses to scale their operations quickly and efficiently by providing additional capacity and resources as needed.
Access to Technology: 3PLs invest heavily in technology, including transportation management systems, warehouse management systems, and other software tools to help businesses improve their supply chain operations.
Cost Savings: By outsourcing logistics activities to a 3PL, businesses can reduce overhead costs, such as labor, equipment, and facilities. 3PLs can also help businesses negotiate better rates with transportation providers, reducing costs.
IV. Technology
Technology has become a vital component of modern logistics and supply chain management. With the ever-growing complexity of supply chains, it is imperative that businesses work with 3PLs that are equipped with the latest technology. In this section, we will discuss the role of technology in logistics and supply chain management and how to evaluate a 3PL’s technology capabilities.
The Role of Technology in Logistics and Supply Chain Management
Technology has transformed the logistics and supply chain industry in recent years, allowing for greater efficiency, accuracy, and visibility. Some of the essential technology tools used in logistics and supply chain management include transportation management systems, warehouse management systems, and inventory management systems. These tools can help businesses optimize their supply chain operations, reduce costs, and improve customer service.
Assessing the 3PL’s Technology Capabilities
When evaluating a 3PL’s technology capabilities, consider the following:
What technology tools does the 3PL use? Are they up-to-date and effective?
Does the 3PL have experience working with businesses similar to yours?
Does the 3PL have a dedicated IT team to manage and maintain its technology tools?
Can the 3PL provide real-time visibility into your supply chain operations?
Evaluating the Compatibility of the 3PL’s Technology with Your Existing Systems
It’s crucial to ensure that the 3PL’s technology is compatible with your existing systems to avoid integration issues. When evaluating compatibility, consider the following:
Does the 3PL’s technology integrate seamlessly with your existing systems?
What are the costs and timelines associated with integrating the 3PL’s technology with your existing systems?
Will there be any disruptions to your operations during the integration process?
It is no surprise that in today’s world, technology plays a critical role in modern logistics and supply chain management. When selecting a 3PL partner, it’s essential to assess their technology capabilities, ensuring they use the latest technology and tools and are experienced in working with businesses like yours.
Furthermore, evaluating the compatibility of the 3PL’s technology with your existing systems is critical to avoid any integration issues. Ultimately, partnering with a 3PL that has advanced technology capabilities can help businesses improve their supply chain operations, reduce costs, and enhance customer service.
V. Cost
When pondering what to look for in a 3PL, it’s important to remember that the lowest price is not always the best option. While it may be tempting to opt for the lowest price, it’s crucial to consider the long-term impact on your business. In this section, we’ll discuss why the cheapest option may cost you more in the long run and how to navigate 3PL pricing.
You Get What You Pay For
Regarding 3PLs, it’s essential to remember the old adage, “You get what you pay for.” The cheapest provider may not have the experience, technology, or resources to meet your needs effectively. Sometimes, they may even cut corners, resulting in issues like late deliveries or damaged goods. Ultimately, these issues can harm your business’s reputation and customer satisfaction. This is a crucial aspect in the journey of what to look for in a 3PL.
Understanding 3PL Pricing
3PL pricing can be complicated, with various factors influencing the final cost. When evaluating pricing, ask your potential 3PL partner to walk you through the costs and how they will make sense for your business. Some factors that may influence pricing include:
While cost is undoubtedly an essential factor when selecting a 3PL, it’s crucial to find the right balance between cost and quality. Consider the 3PL’s experience, technology capabilities, and reputation when evaluating pricing. A slightly higher cost may be worth it if it means better service, increased efficiency, and, ultimately, a better customer experience.
In conclusion, while determining what to look for in a 3PL for your business, it can be tempting to opt for the cheapest 3PL option; it’s essential to consider long-term impacts. A low price may result in lower quality service, which can ultimately harm your business’s reputation and bottom line. When evaluating pricing, consider the 3PL’s experience, technology capabilities, and reputation, and remember to find the right balance between cost and quality.
VI. Credibility
When selecting a 3PL, evaluating its reputation and credibility in the industry is critical. In this section, we’ll discuss the importance of assessing a 3PL’s reputation, how to check for customer references and reviews, and how to evaluate their responsiveness and communication skills.
Reputation and Credibility
While determining what to look for in a 3PL for your business, it’s essential to evaluate its reputation and credibility in the industry. Consider factors such as:
How long have they been in business?
Do they have experience working with companies similar to yours?
What do industry peers say about them?
Customer References and Reviews
Checking for customer references and reviews can provide valuable insight into a 3PL’s strengths and weaknesses. Ask potential providers for references from companies similar to yours and take the time to reach out and ask about their experience. Additionally, search for online reviews and ratings to get a broader understanding of the provider’s reputation.
Responsiveness and Communication
Effective communication is crucial when partnering with a 3PL. Evaluate their responsiveness and communication skills during the selection process to ensure they’re a good fit. Consider factors such as:
• How quickly do they respond to inquiries?
• Do they provide clear and concise answers to your questions?
• Are they willing to work with you to solve potential issues?
When evaluating a 3PL, take the time to assess their reputation, customer references and reviews, and responsiveness and communication skills. A strong reputation and a proven track record of success can provide peace of mind and increase the likelihood of a successful partnership. Effective communication and responsiveness are critical to ensuring a smooth and efficient supply chain.
You’re passionate and knowledgeable about your product and market, and no one expects you to be an expert in shipping and logistics. Make sure that the 3PL you choose is professional and experienced and will value your customers in the same way that you do when it comes to responsive communication.
VII. What to Look For in a 3PL: Conclusion
Selecting the right 3PL is crucial to the success of your business. A strong partnership with a reliable provider can improve your supply chain efficiency, reduce costs, and ultimately enhance your customer experience. On the other hand, a poor partnership can result in delays, errors, and damaged goods, ultimately harming your business’s reputation and bottom line.
In conclusion, selecting the right 3PL is a critical decision that should not be taken lightly. Consider the key factors outlined in this article and take the time to evaluate potential partners thoroughly. With the right 3PL, you can streamline your supply chain, increase efficiency, and ultimately set your business up for success.
Order fulfillment is a crucial part of any business that deals with physical products. Given the almost unimaginable range of products available to the consumer today, many items come with their own specific challenges due to a host of factors such as fragility, volume, loose parts, and weight. There are ways around these challenges, however, and today we’ll take a look at five reasons to outsource fulfillment.
Creating and maintaining a complex logistics system to overcome these challenges is an intimidating prospect due to the massive amount of time and resources that may be required. However, the good news is that you don’t have to perform this heavy lift alone.
Now, let’s dive in and discuss the top 5 reasons to outsource fulfillment.
Focus on core business functions
One of the primary reasons to outsource shipping fulfillment is to allow businesses to focus on their core competencies. Shipping and logistics can be time-consuming and complex, requiring a significant investment in resources and infrastructure. Due to this, outsourcing shipping fulfillment has become a popular trend among businesses in recent years, with more and more companies opting to outsource their logistics operations. These businesses have found that when outsourcing fulfillment, they can free up valuable time and direct their team to focus on other essential functions, such as sales, marketing, product development, and customer service, which can now be intentionally aimed at increasing their bottom line.
Reduce costs
Fulfillment can be an expensive process, especially if you’re handling it in-house. Outsourcing shipping fulfillment can help businesses reduce costs in several ways. First, outsourcing eliminates the need for businesses to invest in their own shipping infrastructure, including warehouses, distribution centers, and transportation fleets. This can result in significant cost savings, particularly for smaller businesses that may not have the resources to invest in these areas. A good fulfillment partner will have the technology and expertise to help you manage your inventory levels and ensure you always have the right amount of stock on hand. Additionally, outsourcing can provide economies of scale, allowing businesses to take advantage of the expertise and resources of larger logistics providers and achieve lower shipping rates.
Increase efficiency and scalability
Outsourcing shipping fulfillment can also increase efficiency and scalability. Logistics providers have the expertise and resources to optimize shipping and warehousing operations, reducing transit times, minimizing errors, and improving overall efficiency. Fulfillment providers have the technology and expertise to optimize the process, from receiving and storing inventory to picking, packing, and shipping orders. As your orders ramp up, outsourced fulfillment can scale with you quickly and easily. Seasoned fulfillment providers can easily accommodate changes in order volume, seasonal fluctuations, and new product launches.
Improve customer experience
Outsourcing shipping fulfillment can also improve the customer experience. Partnering with a reliable logistics provider who understands the critical nature of the shipping experience can help businesses offer faster and more reliable shipping, tracking, and delivery options to their customers. This can help improve customer satisfaction and loyalty, as well as increase sales and revenue.
Access to expertise and technology
Finally, outsourcing shipping fulfillment provides businesses with access to the expertise and technology of logistics providers. Shipping and logistics can be complex and constantly evolving, requiring specialized knowledge and technology to optimize operations. By partnering with a logistics provider, businesses can tap into the expertise and resources of professionals who have experience in managing logistics operations and access to the latest technology and tools, such as artificial intelligence, automation, and robotics, in order to improve efficiency and accuracy.
To learn more about what to look for in a 3PL partner, see our detailed guide HERE.
In conclusion, outsourcing shipping fulfillment can provide significant benefits to businesses, including allowing them to focus on core business functions, reducing costs, increasing efficiency and scalability, improving the customer experience, and accessing expertise and technology. Those looking to optimize their shipping and logistics operations should consider the benefits of outsourcing and explore their options with reliable logistics providers.
In a recent QuickTake Panel with eHub partner LOGIWA, co-hosted by eHub, four experienced and sustainability-driven guest panelists discuss the topic of “How 3PLs Win Through Sustainable Fulfillment Operations” through 3 specific topics:
What it means to become a sustainable fulfillment operator
How sustainability can drive growth for 3PLs
Steps to take to create sustainable operations
Sustainability – What Does it Mean for Companies?
Sustainability in business aims to reduce the environmental impact companies cause through their operations. For 3PLs, companies, brands, and consumers and customers alike, sustainability is an inevitable and driving factor in the future decisions for what businesses will be supported, and how businesses will conduct their operations, including through 3PLs and fulfillment. Logiwa’s quicktake panel goes over how sustainability has been achieved by their companies, how it can be achieved by others, and the ultimate impact and advantage sustainability can provide to 3PLs and businesses wanting to take that journey. Here are some of the highlights from the panel’s answers to the topics:
TOPIC 1: WHAT IT MEANS TO BECOME A SUSTAINABLE FULFILLMENT OPERATOR
Jamie: For a 3PL business owner, some of Logiwa’s customer’s sustainability is operating in a manner that’s going to minimize the negative impact on environment, society, economy, but will also maximize the positive impacts.
Reid: [Sustainability] applies to a lot of different facets for the customer itself. How do you go above and beyond for the customer and show them that you’re considering things that they might not have even thought of themselves that apply into the sustainability bucket.
George: Sustainability is a journey. It’s a journey for your business,…where you as a business owner or a member of a team decide to pick up the banner and go on that journey…and include as a stakeholder and a decision-making process; are [you] factoring in the environmental impact of these decisions? Obviously we all want to build successful businesses…but in addition to that are we taking into account what effect this has on the planet, on the environment, on the communities that we operate and live in.
Sustainability takes into account not only doing good business, but how we are rooting for the planet, for the community, for the people that we care about and who we’re gonna leave the world to.
TOPIC 2: HOW SUSTAINABILITY CAN DRIVE GROWTH FOR 3PLs
Wayne: From a pure business perspective, why would a 3pl or a brand managing their own fulfillment for that matter consider making this investment in sustainability?
Reid: I’d say the biggest thing is this no longer a niche play, or it should no longer be a niche play If you make money, great, but if you’re not putting it to good use or to good focus then I’d say nobody effectively wins.
George: The bottom line is customers are demanding it. Customers are demanding. Consumers are demanding it. So, as much as it is the right thing to do it is also a very pragmatic business decision. The shift towards sustainability is inevitable. Are you going to be forced to do it down the road, or are you going to do it now and really put your stamp in that space as one of the early thought leaders, early companies that adapted these principles in sustainability as a north star. From a branding perspective, it makes so much sense as well…[because] it’s very rare that I come across a 3PL that is able to confidently assert that sustainability is one of their top values. So from the fact that it’s a small saturation of 3pls that are practicing sustainability as a high priority right now, is an immediate competitive advantage
Jamie: sustainability has…transitioned…[in that] it’s going to become a competitive neutralizer, if you’re not doing it you’re behind the curve. There’s a lot of ways that we can impact that. Particularly things like smart routing of orders, or if we’re recommending the proper package types, or trying to run an order to a particular location where there’s gonna be the least amount of transport.
George: The branding of sustainability catches a niche audience. I’ve had customers over the last year and a half that…[say] “just because you do what you do and you do it in a way that is sustainable you have my business” Just by the virtue of your value, you’re attracting [an] audience. [Another] thing that’s important is for you to share your data with your customers. Having a partner that knows how and represents the data back to them is super important in terms of customer loyalty…[it creates] a really virtuous chain reaction of data and action
Adam: There’s this thought that sustainable fulfillment is more expensive, and I think there’s a lot of misconceptions…because reducing waste can absolutely be a very economical and cost effective thing to be doing. One example we had was a 3PL [that was] working through the prospecting stages of bringing on a merchant…[Their] primary focus…was cost savings. One of the things that we discovered [was] we could help right-size package some of their high-volume products, eliminating waste, and the projected savings on that was 40,000 dollars
Reid: [With less packaging] You’re can also save your operations team from creating the box, closing the box and going from there which eventually plays into an efficiency aspect because [when you’re] looking at the bottom line, it not only makes sense for the customer, but it’s also saving the operations team allowing them to process more orders. So really it’s a win win.
George: Utilizing sustainable materials and sustainable supplies [is] super important. The only thing more sustainable than that is using less of it…[at Manifest] we work with each client to find the optimal packaging. Bottom line is…customer loyalty. We all know the upfront customer acquisitions costs in this business aren’t easy to swallow. So being able to retain those clients and have their loyalty and have them super happy with the service you provide and very proud to be working with you and them seeing you as your true supply chain partner just creates a longer, more prosperous relationship in the long run.
TOPIC 3: STEPS TO TAKE TO CREATE SUSTAINABLE OPERATIONS
Wayne: Is [creating sustainability] incremental, or is it a more wholesale way to…move your operations into a…sustainable mode of operating?
George: Part of the problem [is] everybody wants to be sustainable and build sustainable businesses. There are very small things that you can start off with and start to make a difference and compound into realistic and formidable progress, and don’t be afraid to lean on what others are doing. Copy us, copy other ideas, and then that’s the easiest path. You don’t need to put pressure on yourself and your team to reinvent the wheel or invent the wheel for sustainability for your fulfillment operations, there are small things that are happening every day all around you that you can start to implement For example, one of the first things that we decided to do was offset the carbon footprint on all of our shipments. Something as simple as walking around your warehouse and deciding [if you’re using] the right LED lights that save power,…[implementing] movement track lighting. And then recycling…the amount of trash that gets picked up, the amount of cardboard…that nobody wants to pick up…so figuring out ways what to do with all that excess waste and trash. All those are steps that compound into really meaningful differences.
Jamie: One of the key factors in the momentum behind sustainability is that there’s so many different avenues to go start. The more of these opportunities to build your brand and business that you can take advantage of, the more these levers that you can pull, the more advantageous you’re going to be. LED bulbs, motion sensors, or usage of natural light. Sometimes it’s just as simple as painting your roof white, and minimizing your cooling costs.
WRAP-UP
Adam: There’s a lot of partners, there’s a lot of people out there that can help you, and so I would just say work with those around you, join whatever community partnership you want to in order to take the first steps. Leverage the community we have in order to make progress on those initiatives.
Reid: Let’s continue to…share [these things]. Let’s continue to make them even better because if we go out there and just hold onto them, that’s not going to be good for anyone. That’s not even a sustainable concept. The sustainability…is truly in the networking side and also in the delivery side.
George: The market is driving us. The shift towards sustainability is inevitable, so as a business owner you need to have it on your map. This is a journey, and small steps are ok. They will compound into more and more progress and…implementation. Adapting that into your roadmap…thinking and…decision making for you and your team is the best way to get started and you’ll be surprised how much progress you can make really quickly just by making decisions and thinking about your business in environmentally friendly and sustainable ways.
SALT LAKE CITY, Jan. 13, 2023 – eHub, a platform that provides streamlined shipping functions for 3PLs and high-growth DTC merchants, announced the launch of a new strategic partnership with Logiwa, the leading cloud fulfillment platform for high-volume direct-to-consumer (DTC) businesses.
In the competitive e-commerce space, 3PLs and online merchants rely on modern technologies to optimize all aspects of the supply chain, including shipping and delivery. Logiwa’s cloud-based warehouse management platform seamlessly integrates with eHub’s API to simplify the complexities of the shipping process.
The joint functionality allows users to find carriers within eHub’s network of more than 150 carriers, shopping carts, and marketplaces. This gives access to shipping capabilities such as rate shopping, package tracking, delivery information, and other core features within Logiwa’s cloud fulfillment platform. Users can also access advanced reporting to track the shipping process and keep the buyer updated on the delivery process.
“eHub is dedicated to providing essential solutions that increase efficiency and drive growth for our 3PLs and merchants,” said Wade Sleater, CEO of eHub. “Pairing Logiwa’s cloud-based fulfillment platform with eHub’s dynamic API provides our customers with flexibility and a competitive advantage unparalleled in logistics.”
“Today’s customer wants quick and cost-effective shipping, making it critical to the success of any e-commerce business,” said Erhan Musaoglu, founder and CEO of Logiwa, Inc. “Partnering with eHub provides customers with a range of tools that will get orders on time and as promised, which translates to a positive customer experience.”
About eHub
eHub connects shippers with carriers, shopping carts, and marketplaces to provide flexibility and competitive advantage through a dynamic API. The eHub solutions provide businesses with cost savings and new revenue through competitive rates, responsive customer services, pre-negotiated shipping contracts, and the eHub Network. The eHub Network offers a variety of complementary advantages to merchants looking for the best 3PL value and advantages to 3PLs looking for new business opportunities. The benefits to 3PLs of partnering with eHub include access to a robust lead sourcing pool, revenue sharing on any leads passed into and placed within the Network, and rate monetization to capture the most significant margin on every package shipped. To learn more about eHub, please visit www.ehub.com.
About Logiwa
Logiwa is the leading cloud fulfillment software for high-volume direct-to-consumer brands, wholesalers, and 3PLs. The Logiwa Cloud Fulfillment Platform is an integrated WMS and order fulfillment system that makes it easy to run a digital warehouse and scale your high-volume DTC fulfillment operations. Logiwa’s solution works where traditional WMS systems fail: it connects quickly with new online stores and marketplaces, makes it easy to run a digital warehouse, and is easily updated to support dynamic warehouse environments. To learn more about Logiwa, please visit www.logiwa.com.
If online retailers have sold products to anyone in the European Union (EU) as of July 1, 2021, they’re most likely aware that taxation changes have been made. Non-EU retailers have been given new options for VAT payment in the EU. Online retailers, as well as consumers, will need to know what these changes and new rules are, why these changes have been implemented, and the options for businesses to incorporate them.
What has changed with EU import VAT?
The EU eliminated its €22 tax de minimis, implemented new value-added tax (VAT) regulations, and encouraged online retailers to adjust their methods of importing goods into the EU.
Before July 1, anyone importing goods into the EU valued under €22 was not charged VAT. Now (post-July 1, 2021), all low-value imports (where the total value of goods is less than or equal to €150) are charged a VAT fee applied to the COGS value (cost of goods sold).
Why the change?
There are several reasons why the EU decided to remove the €22 de minimis and distance selling threshold that previously voided the VAT fees for orders under the threshold, including the following:
1. VAT fraud A massive amount of VAT fraud has been occurring in the EU, averaging around €7B in VAT fraud each year. The new rules aim to make shipments more secure and eliminate processes that allow fraud to occur quickly.
2. Level the playing field The EU incorporated the VAT scheme in an attempt to level the playing field between domestic and foreign retailers. Online EU retailers previously paid VAT on all orders, regardless of the value of the delivered goods, while retailers from countries outside of the EU could slide under the de minimis, allowing them to offer more competitive pricing. As of July 1, 2021, non-EU retailers must also pay VAT fees on all of their shipments into the EU, helping EU retailers stay competitive.
it’s extremely important to consider what kind of experience retailers want their customers to have
Non-EU online retailers also have the cost of international shipping and the task of finding and paying for an intermediary/fiscal representation. EU retailers do not need an intermediary, and their domestic shipping costs are significantly less expensive than international shipping costs. While the EU initially intended to level the playing field for domestic EU sellers, the changes have given them quite the advantage over non-EU retailers.
An intermediary is a European tax representative, usually an international accounting firm, who acts as an in-country agent for online retailers selling into the EU. After retailers acquire an IOSS number, the monthly remittance of VAT for all EU sales will need to be paid to their intermediary, who will then go on to pay it on the seller’s behalf to the country that they’ve selected for representation.
3. Tax revenue A more obvious benefit, but a benefit nonetheless, is that the EU’s removal of the de minimis causes an increased tax revenue.
4. Simplify The new VAT scheme is intended to simplify the VAT collection process. IOSS offers a new optional method of VAT collection by pre-collecting the EU import VAT.
Were online retailers and consumers ready?
Despite months of news coverage, many retailers were not prepared for the VAT scheme when it launched and have had difficulty incorporating the new scheme. Some local governments were unprepared to enforce the new rules, and communication has been less than ideal. The EU, retailers, and customers are still experiencing somewhat of a transitional period; however, implementation is getting better. Despite the difficulties of these changes, businesses should never try to cheat the system, engage in illegal shipping conduct, or fail to comply with the new VAT scheme because it will result in penalties.
What does the new EU VAT scheme mean for online retailers and consumers?
With the new VAT scheme, online retailers must decide how they want their EU consumers to receive their packages. While there are several different options to handle VAT collection, this article focuses on IOSS.
IOSS service
The Import-One-Stop-Shop (IOSS) service allows retailers to register in one European country (their choice) and report all European sales in a single VAT return to that country. For example, if a seller registers for an IOSS number in Ireland, they will report and remit taxes for all EU sales there. Ireland would distribute the VAT collected to the countries where the sales occurred.
This simplifies the registration and remittance process because retailers don’t have to register in multiple countries as they did previously with the distance selling thresholds. However, it does require non-EU businesses to appoint and pay for an in-country representative who will go on to disperse their collected VAT and take on liability if the non-EU businesses don’t pay.
When using an IOSS registration number on import documents, retailers must select DTU/DAP to ensure they will not be charged carrier disbursement or advancement fees on their shipments into the EU. Bypassing these fees can save sellers up to $16 (USD) per shipment, which adds up.
It’s also important to note that once sellers register for IOSS, they must stick with it. Sellers cannot pick and choose which orders to collect VAT on and ship with their IOSS number…it’s all or none. All low-value orders imported into the EU must include the online retailer’s IOSS number. However, if sellers decide they need to withdraw from using IOSS, it is possible to deregister, but they will have to cancel their VAT registration. They must also be on good terms with the country of VAT registration (current on VAT payments).
IOSS is only applicable for B2C (business to consumer) shipments where the value of the products is equal to or under €150. Retailers considering IOSS should evaluate how many shipments fall under the threshold. Many carriers have gone on record stating that they support the IOSS program since the VAT will be prepaid, and the online retailer will avoid paying the carrier’s advancements or third-party collection fees. Other carriers have said they will only work with IOSS-registered merchants.
IOSS can potentially have a quicker transit time than DDU (delivered duty unpaid) packages. IOSS also has the capacity to provide the best customer experience. The presence of an IOSS number on a package helps increase the potentiality for a more efficient customs clearance process because it lets customs know that VAT will be remitted later to HMRC (Her Majesty’s Revenue and Customs), which allows the package to move directly out for delivery once it has been cleared.
The IOSS number is required on every shipment. Displaying and collecting VAT at checkout [along with the other fees that make up a landed cost] also provides price transparency, letting customers know the entire landed cost at the time of purchase with no surprise fees upon delivery. This allows for a good customer experience, resulting in great reviews, fewer returns or abandoned packages, and possible repeat customers.
Other options
The additional options to manage VAT collection are as follows:
Special Arrangement – DDU (delivered duty unpaid) carrier collects VAT from customer (⚠️ not recommended)
Send DDP – (delivery duty paid) landed cost calculated and collected at checkout and paid to the carrier (no IOSS number)
Note that it’s extremely important to consider what kind of experience retailers want their customers to have—displaying and collecting VAT, along with all other fees that comprise the landed cost, at checkout results in a clear, simple, and positive customer experience.
Nearly every parent has experienced abandoning a shopping cart filled to the brim with ice cream, frozen waffles, and fruit snacks as they drag a screaming, flailing toddler out of a grocery store at least once.
Luckily for the store stockers, the parent, and the toddler, that doesn’t happen often.
But if your online store were an actual, physical place, you’d probably have more abandoned carts littering your aisles than products on your shelves.
What is shopping cart abandonment?
Shopping cart abandonment, when online shoppers start to checkout but quit before clicking “complete order,” is a natural and expected part of e-commerce. The virtual version of telling a salesperson, “I’m just looking, thanks,” consumers hit “add to cart” because they want to:
Keep an item they are interested in easily accessible
Compare items and prices
Estimate the cost of shipping and taxes
Experience the rush of retail therapy without breaking the bank
Test a coupon code
Even though it’s just part of doing business, shopping cart abandonment is an $18-billion-dollar problem for retailers annually.
The average documented shopping cart abandonment rate across all industries is a whopping 69.57%. For mobile users, rates jump up to 85.65%.
That’s a lot of money left on the virtual table. Essential Hub wants to help you get it back.
Top 5 reasons for online shopping cart abandonment
The top 5 reasons consumers give for checkout abandonment are:
Extra costs (shipping, taxes, fees) are unexpected or too high (49%)
The site will not allow checkout without creating an account (24%)
Shipping and delivery timelines were too long (19%)
The checkout process was too long or confusing (18%)
The checkout portal did not appear to be secure (17%)
It’s a tough pill to swallow, but the truth is that Amazon’s Prime program has dramatically impacted consumers’ online shopping and shipping experience.
According to the statistics above, a whopping 68% of online shopping carts are explicitly abandoned because businesses don’t meet consumer shipping expectations. Even more strikingly, 28% of shoppers will abandon their carts if shipping costs show up as an unexpected “gotcha” during the checkout process.
When you combine the expectation of free and fast shipping with increased consumer privacy rights, those top reasons for shopping cart abandonment make a lot of sense.
EHub’s shopping cart abandonment solutions
You’ll never be able to eliminate shopping cart abandonment completely, but there are things you can do to reduce it significantly:
Offer free shipping.
If you don’t have free shipping, be upfront about all extra costs, like shipping, taxes, and fees, from the first click.
Simplify and secure your checkout process to improve page load times and reduce confusion.
Free shipping According to AlixPartners, 72% of US consumers said that including free shipping “greatly impacts” their online purchasing decisions. There are multiple use cases from businesses that have seen their orders increase by as much as 90% after implementing free shipping.
You must be thoughtful about adding free shipping to your customer service arsenal if you want to stay in the black. Setting up simple reports to track product pricing, profit, and shipping expenses can give you the data to adjust your market pricing strategy effectively.
At EHub, we help you crunch the numbers to determine which of our streamlined shipping solutions will meet your needs. Because we aggregate shipping costs across all our customers, EHub can offer cheaper solutions than you’d get working directly with the shipping company.
Basically, we make offering free shipping more accessible, cheaper, and faster than you thought possible.
Be upfront about shipping costs If free shipping isn’t feasible, shipping costs must be clearly visible throughout the entire shopping process. Customers will abandon carts with lightning speed if they are hit with an unexpected shipping charge, even if it’s only $15.
EHub’s proprietary API can seamlessly integrate with your checkout processes to make sure your customers know exactly what kinds of shipping costs to expect (which, as we mentioned, are among the industry’s lowest if you use EHub).
Additionally, EHub can deliver faster, provide tracking, and give you detailed reporting and analytics capabilities that will take shipping from your biggest headache to a walk in the park.
It’s a tough pill to swallow, but the truth is that Amazon’s Prime program has dramatically impacted consumers’ online shopping and shipping experience
Simplify and secure your checkout processes Checkout optimizations can improve your conversion rates by 35.26%, which translates to significant profit growth for a small business. Offering guest checkout, optimizing images for faster page loads, adding a progress tracker, and using HTTPS connections are all steps we can take to help you streamline your checkout process and decrease your shopping cart abandonment rates.
Get those carts to the registers
EHub is here to help you optimize your checkout processes and offer shipping solutions to keep your customers digitally pushing their carts to the “complete purchase” button. Contact us today to see what we can do for you.
