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.

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.

how to choose Fulfillment Centers in China as shopify seller or amazon seller

China fulfillment center can help you distribute products directly from your factory to customers all over the world.

In this article, we list the leading shenzhen and Hong Kong-based fulfillment centers, including chinadivision.

we cover the following:

  1. Potential tax issues with cross border e-commerce fulfillment
  2. When does it make sense to use a fulfillment center in Hong Kong or shenzhen China?
  3. Should you select a fulfillment center in Hong Kong or shenzhen city China?

What is a fulfillment center?
Fulfillment center offers e-commerce merchants warehousing (storage) and shipping services, that allows online businesses to operate without owning their own warehouse or physical storage space.

Sellers or e-commerce merchants can directly send their inventory to the fulfillment center from where it is shipped to their customers.

Most fulfillment centers are integrated with e-commerce marketplaces and platforms like Amazon (which also operate their own fulfillment centers, Shopify, and eBay, making it easier for merchants to manage inventory and delivery products.

These are the top reasons why importers choose fulfillment centers:

  1. You can get closer to foreign markets. If you are based in the United States and want to sell in Europe, it’s way easier to send your goods to a fulfillment center in the EU – compared to setting up your own warehouse or sending products from the US.
  2. It’s often cheaper to use a fulfillment center to store and pack your products, compared to renting a warehouse and hiring employees.
  3. Your international customers get receive the product in only a few days, rather than waiting for more than a week.

In most cases, fulfillment centers go through the following process:

  1. E-commerce merchants (or the supplier in China) send their products to the warehouse
  2. The center stores the products in the warehouse
  3. The customer makes a purchase and orders from the merchant’s website
  4. The fulfillment center picks & packs products
  5. The fulfillment center ships products to each individual customers

ChinaDivision is a leading Shenzhen-based fulfillment service provider, that offers a wide range of fulfillment services. These services include:

Storage
Picking & packing
QC and inspection
Shipment management
Returns handling
Other value-added services
It is a subsidiary of CNstorm Co., Ltd, which was founded in 2011 The head office and the warehouse of the ChinaDivision are based in Shenzhen.

It also offers easy integration with all major e-commerce platforms and offers dedicated service for Amazon, by the name of “Amazon China fulfillment Service”.

more info: http://www.chinadivision.com