What are the Factors Driving the Rapid Development of Warehousing Companies?

In recent years, third-party warehousing has developed at an incredible speed, greatly satisfying the various needs of e-commerce customers. So what factors drive the rapid development of e-commerce warehousing?

The fundamental cause is the popularity of online shopping in the internet age. The emergence of e-commerce industry has greatly promoted the transformation from traditional warehousing to modern warehousing. In order to meet the increasing demands of e-commerce customers for delivery, the order fulfillment warehouse must be able to ensure the rapid improvement of their business capabilities to attract more e-commerce customers, which makes it impossible for warehousing companies to slack off. If they are not careful, they will fall behind and cannot keep pace with the progress in the e-commerce era.

The second reason is the increase in consumer demand. With the advent of the fast food era, most consumers are reluctant to spend too much time waiting for the delivery of goods purchased online. Amazon sellers often encounter situations where consumers are badly rated and returned because the delivery is slower. In order to help improve the evaluation of their store, the third-party warehousing will ensure the timeliness of its own delivery as much as possible. From the location of the warehouse to the operation of the employees, the order will be sent to the express distribution center in the shortest time. To ensure that it can be delivered to consumers in the first place. So as to improve consumers’ evaluation of logistics and distribution.

In addition, intelligent warehousing also counts a lot. The advent of the era of information intelligence has also promoted the progress of automated warehousing, prompting third-party warehousing to be generally equipped with various types of automated warehousing equipment and professional management systems to ensure their own business capabilities.

Therefore, with the promotion of these factors, the warehousing industry of e-commerce can develop rapidly, which can bring better services to e-commerce sellers and help hem take the stress out of order fulfillment.

Why it is Important to Pay a Visit to Your Order Fulfillment Warehouse?

E-commerce sellers who have learned about outsourcing warehouses maybe want to check the actual delivery status to confirm the professionalism of the 3rd party logistics. Thus, it is a good choice to conduct a field visit around and inside the warehouse. So what are the important issues that can be judged by fieldwork?

First of all, you can check the surrounding environment of the warehouse. In order to ensure the timeliness of delivery, the courier can enter the courier distribution center as soon as possible. The e-commerce seller needs to confirm whether the order fulfillment warehouse is around or even inside the courier distribution center to ensure the delivery. At the same time,

also need to confirm the traffic conditions around the warehouse, because e-commerce sellers need to send goods to warehousing companies through logistics or other methods, so the transportation convenience during delivery and storage needs to be guaranteed.

At the same time, you can also see the professionalism of the warehouse staff, which is a very important aspect. For example, some Amazon sellers may have fragile products or some items that require more professional storage methods(red wine, cosmetics, food, etc. ), so you can visit  the warehouse to check the level of personnel operation and find whether there is violent operation or any factors that can damage your inventory. In Fact, whether or not your goods are protected in the third-party warehouse is also a problem that e-commerce sellers are more concerned about. No one wants to receive the news that their goods is damaged.

In addition, e-commerce sellers also need to confirm whether warehousing company is equipped with a professional warehouse management system and related equipment to ensure the accuracy of delivery.

Finally, China Division welcomes your visit at any time! Please be sure to contact us if you have any questions about the order fulfillment and Chinese warehousing.

Suggestions on Controlling Fulfillment Warehouse Loss Rate

What is the utilization rate of the warehouse to prove the strength of an e-commerce order fulfillment center? In a sense, it covers the control of loss rate, the lower the loss rate is, the better the utilization rate will be. Nevertheless, the turnover rate of goods in the e-commerce warehouse is quite high, and there will be losses in the process of turnover and movement. What’s worse, it is difficult to predict where these losses will occur, how many losses will occur, whether they will be registered timely, what causes it, and the most important question is how to effectively control the rate of loss of inventory.

The following aspects will tell you how ChinaDivision carry out this work:

  • List Loss Points

All warehouse staff will participate in the discussion, starting with the process of e-commerce warehouse management, studying which operations are easy to cause the loss of goods, and recording these possible problems timely. Second, we need to count historical data, classify according to the cause of loss, and see how much loss is caused by each loss point. To determine the percentage of each loss that accounts for the overall loss of the e-commerce warehousing.

  • Set the Standard for Los

According to the data, ChinaDivision will calculate the loss value and percentage of the loss point to determine the loss standard and determine how much the loss standard should be kept. Zero loss is always just an idealized number. In reality, there is no such zero loss situation. 3pl fulfilment It is better to work out a more reasonable control target at a time and gradually improve it. Besides, the loss prevention standards mainly  referred to  two aspects, one is the target value, and the other is the loss prevention operation standard, which is used to regulate the staff in the e-commerce cloud storage in order to control within the target loss value operational requirements.

  • Record Data Timely

It is not for the operator to clarify the target value of the loss to be controlled, to receive training to understand how to prevent loss, and the loss will naturally fall below the target. It is necessary to record and account for the loss of the operation. In some places where management is not standardized, there are certain hidden rules, such as underreporting of losses, concealment, or staring at target values. These actions will affect the timely search for the cause of the loss, and then take effective measures to reduce subsequent occurrences. We have formulated the rules for accurate accounting. The loss is classified according to the reason for loss and scrap in the finance. When the reason is more general, the specific loss point is written in the remarks, which is convenient for the next round of combing and reducing the entire warehouse management. There must be a mechanism for inspection, supervision, and assessment, and actions that are not properly accounted for should be dealt with and punished in a timely manner.

Only by sorting out these loss issues, determining specific loss standards, and confirming the data in time, can the loss be controlled within the target range, so both the drop shippers and their customers can benefit a lot.

Will Automated Warehousing Replace Order Fulfillment Company?

With the advancement of modern automation, automatic warehousing equipment has gradually entered people’s attention, especially e-commerce warehouses. It can be said that the rise of modern e-commerce warehousing outsourcing services must be inseparable from the assistance of warehousing automation equipment. However, in the modern era of rapid scientific and technological progress, automated warehousing will be an inevitable choice in the future. So is it necessary to find a third-party logistics services? Will e-commerce order fulfillment warehouse be replaced?

On the one hand, with the widespread popularity of automated storage and equipment, the price cost is still unaffordable to many e-commerce sellers. Especially for small and medium-sized sellers, under the premise of small shipments, spending a lot of money to buy automated storage will only increase unwarranted consumption. In fact, the better choice is the e-commerce warehousing outsourcing service. Under the urging of the times, the third-party warehouse must be equipped with various types of automatic equipment, which will be better than self-built automated warehousing. Higher delivery efficiency and  more favorable price can help small and medium-sized companies better meet the challenges of the wave of automation.

On the other hand, most e-commerce sellers will adopt the principle of proximity when building their own warehouses, that is to say, the want to set up warehouses in areas close to their own companies to facilitate supervision. Then this will inevitably lead to the problem of low timeliness of delivery. But the third-party e-commerce warehouses are all located near the express distribution center, which has a considerable advantage in terms of timeliness of delivery. With the ultra-high accuracy of automated warehousing, it can greatly improve the timeliness of logistics and the accuracy of delivery.

What will Happen to Drop Shipping in the Future?

Over the past decade, many Chinese drop shipping agents had embraced incredible success on account of lower shipping costs and better capability. Unfortunately, COVID-19 had a ripple effect on drop shipping agent and cross-border e-commerce companies, which caused a heated discussion about what will happen to the drop shipping business in the future.

Back to 2018, American President Trump announced that the United States was pulling out of the intergovernmental body called the Universal Postal Union after claiming that China has been taking advantage of the US. One year later, UPU announced that it reached a deal with the US and it approved President Trump’s request to collect higher fees on packages from international destinations. The agreement will go into effect on July 1, 2020 and American sellers can expect significantly hiked prices on their products. Basically, ePacket, a shipping option offered by Chinese and Hongkong merchants when shopping on popular Chinese marketplaces like Aliexpress, will no longer be price competitive and many American independent sellers will, if not go out of business, dramatically lose revenue.

But it is a fact that China is the world’s largest manufacturing country and a titan in the global exporting industry. According to statistics, China had assisted over 18 countries in the work of epidemic (South Korea, Italy, Japan, Iran, Pakistan, etc). Apart from sending medical teams, China also donated $20 million to the WHO, as well as masks, medicines, protective suits and other epidemic prevention materials to relevant countries. From the data, we can figure out the capability of Chinese Government, and so do the drop shippers. The local quarantine agency said Chinese outbreak appeared to be well contained, so there will be adequate staff in the order fulfillment center to achieve fast warehousing, packing and shipping.

In brief, Chinese drop shipping is the trend of e-commerce in the future, your business can be booming with the help of drop shipping agency.

Warehouse Optimization Plan of China Division

Maybe some of e-commerce businessman are trying to find a superior Chinese sourcing agent of mask, goggles and protective hat due to the prevalence of flu virus and COVID-19. But you must be capable of picking the most cost-effective order fulfillment center, as well as a normalized third-part logistics. This blog will share our method of warehouse optimization.

  • Dampproof and Mildew Proof Work

We are intended to adopt a deoiling and dehumidifying machine with good performance, closed with plastic film, air curtain for moisture separation and air regulating storage.

  • Digitized Inventory Management

Equipped with first-class technical staff, China Division will create digitized storage and portable computer access system.

  • Fire Protection System

Three-dimensional warehouse needs to set up automatic sprinkler system to ensure enough water while the special warehouse needs to prevent the static electricity generation. What’s more, it is very important to install a lightning protection system with good performance.

  • Classified Warehousing

In order to create high-quality warehouse fulfillment service in China, there are clear regulations in China Division: The storage of dangerous goods of different types and properties shall be in accordance with the principles of division, classification, subsection and special warehouse. For example, liquid chlorine is highly explosive when exposed to ammonia or acetylene, so they must be stored in separate warehouses.

  • Regular Warehouse Inspection

We will ask the warehouse staff to inspect the dangerous goods every month for safer picking packing and shipping. Therefore, some items about to expire will be found in advance, avoiding negative comment for the online owner of Kickstarter, Amazon, Shopify, eBay, Aliexpress, etc.

Homebody Economy Brings More Opportunities for Chinese Warehouse

The COVID-19 pandemic had exerted a profound impact on people’s lives and consumption habits, so the so-called “homebody economy” gains steam all around the world, which has boosted a new consumption trends, according to a study released by Nielsen, a global measurement and data analytic company.

“Although home quarantine restricts people from going out, it makes staying at home a new way of life and thus boosts the ‘homebody economy’,” said Justin Sargent, president of Nielsen China, adding that consumers have quickly adapted to the situation in order to meet daily needs such as staying safe or for shopping, as well as for personal leisure.

In addition, with the advent of 5G, AR and artificial intelligence, Chinese warehousing will embrace more and more opportunities and benefits, so do their customers—the brand owner or shopkeeper of online store.

From the perspective of the e-commerce century, Amazon and eBay sellers are trying to fulfill better webstore performance and customer satisfaction, so it is time to collaborate with a drop shipping company for faster delivery. We are convinced that the tide turns on crisis. As the famous saying goes that the opportunity is for those who are prepared. You can start with fulfillment center service and you will meet more profit in the field of cross-border e-commerce.

What factors need to be considered in the choice of warehousing outsourcing?

Nowadays, many e-commerce sellers prefer order fulfillment center, but what factors need to be considered when choosing your new warehousing partner? Here we have listed some major factors for your reference.

  • Charging Standard

The charge standard of fulfillment center can be divided into two categories:

The first category is to carry out the charging standard according to the actual operation volume (warehouse receiving, delivery, storage, return, etc.). And the other type is based on the cost of resource consumption and development contract (the total area of the application warehouse, the total number of staff, equipment depreciation, consumables, etc.)

  • Process Control and Management Data

It is necessary to carefully investigate the process optimization documents of your potential warehousing partner to evaluate its standardization and work ability. For example, you can obtain a general idea of them through website visiting. You can also pretend to be a new customer to test them. Generally speaking, the will show you some files about their enterprise profile and fulfillment performance, which cover their process control and management methods.

  • Execution Capabilities

In addition to the marketing plan, the execution ability is also a very critical part. It is necessary to fully grasp the work flow of third-party warehouse and outsourcing enterprises, especially the steps at the level of purchase, marketing, accounting supervision, etc. A qualified warehouse should work out the practical plan.

  • Humanized Marketing Plan

Customized business planning of a Chinese order fulfillment center is an indelible aid. You can evaluate its professional skills and value according to their marketing plan. Furthermore, a fulfillment center with strong market sensitivity will create a more valuable plan, which means they can provide more benefits for you.

In a nutshell, China fulfillment services is appreciated by more and more e-commerce companies, especially the Amazon and Shopify seller. Therefore, detailed investigation is a wise choice for everybody who wants to find an ideal expert of drop shipping, packing, china sourcing, third party logistics, etc.