3 Factors Makes it Worthwhile to Choose an Order Fulfillment Warehouse

When e-commerce sellers choose a third-party warehousing agency, they are bound to have a question. Is order fulfillment warehouse really safe and reliable? Can e-commerce sellers feel completely at ease? Is it really trustworthy? Therefore, we have summarized three major elements.

First of all, it is the safety of the goods. After e-commerce sellers put the goods in a third-party warehouse, they are bound to be a little unsure about the safety of the goods, for fear that the dropshipping company may not be able to keep the goods and cause economic losses. In fact, the order fulfillment company will sign a contract with the e-commerce seller. The warehousing company will take on the responsibility if the problem occurs.

The second issue is efficiency. In fact, efficiency is the least worrying issue for e-commerce sellers. Most third-party warehouses are located near the express distribution center, and delivery efficiency and order cut-off time can be guaranteed. After receiving the order, the third-party warehouse can quickly pick and exit the warehouse for processing, and can usually enter the distribution center within an hour to quickly deliver the goods, achieving the effect of the invention.

Finally, what needs to be considered is the price of third-party warehouses. E-commerce sellers will also worry about whether or not to deliver warehousing and delivery to a third-party company, although the efficiency has improved, but the price has also increased too much. In fact, e-commerce sellers do not need to worry about such problems. The first is the price of express delivery. Dropshipping companies and express delivery companies have closer cooperation, and the prices given to e-commerce sellers are bound to be more favorable than those communicated by themselves. In terms of warehouse rental prices, a professional third-party warehouse like ChinaDivision has a competitive warehousing policy, which is also very advantageous in terms of price.

On the whole, the order fulfillment agency deserves the trust of e-commerce sellers.

How to Accelerate the Order Fulfillment Process?

Every minute counts in the business called order fulfillment, a significant part of supply chain management. The success of your business depends on how quickly and efficiently you can process the orders. The more order you can process, the faster you will be able to ship. This increases customer satisfaction and gives you a competitive edge over your competitors. Here we offered some tips for improving your order fulfilment performance.

Order Picking System

An effective system can pick order from its customers in a faster and more accurate way. The workers in the order fulfillment warehouse can recognize the specific item of the orders easily, instead of worrying about mistake or inefficient work. Therefore, more and more order fulfillment companies tend to develop their own system.

Inventory Update

It is frustrating if your customer find that their items about to be shipped are out-of-stock. Since out-of-stock situations are unavoidable, it is better to obtain the updated information of your inventory. Generally speaking, you can check your inventory update through the system chosen by your dropshipper.

Open Communication Channels

Communication is the key to building trust and increasing orders, so you need to keep all the communication channels opens, covering face-to-face meeting, telephone, e-mail, online chat, etc. Besides, you can tell the responsibilities of each person in your team to your customer for better communication.

Reasonable Return Policy

Return policy is an inevitable problem of order fulfilment. Your customers are more likely to place an order if you have is a good return policy in place. With so many suppliers they can go to, they don”t want to buy from one who won”t give a refund or exchange for goods that turn out to be defective. Thus, you need to make sure that your customers know your return policy and understand it, it is practical to mention it clearly and unambiguously on your website and contract.

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How to Avoid Errors in Warehousing Logistics?

Although order fulfillment warehouses have embraced faster developing, the automated operation has not been popularized for the current economic and technological level. At present, most of the order fulfillment work is based on manual operations. Therefore, it is normal to meet mistakes in the case of manual operation, which will cause losses. But how to avoid logistics errors? Have you found the effective way?

In order to take useful actions, ChinaDivision summarized the main reasons and some solutions:

Reasons:

  • 1. The warehouse staff are not focused enough when delivering and picking goods;
  • 2. The staff is not proficient in the operation of their job;
  • 3. Excessive fatigue of staff leads to an increase in the error rate.

Solutions:

  • 1. The order fulfillment warehouse should set up punishment system on employees who fail to concentrate on their work and cause logistics errors.
  • 2. More communicate should be covered when encountering problems. For example, all the parties can discuss, analyze and sum up together, instead of shirking responsibility.
  • 3. Staff training should be more practical to ensure that the staff follow the standard at every step. Warehouse employees need to work strictly in accordance with operating procedures, and must not omit certain necessary procedures for convenience. The operation process of a project is discussed and formulated by many professionals, and needs to be strictly followed.
  • 4. Ensure that employees have a full working state. For employees who are tired from working overtime for a long time, they need to be given a certain amount of rest time to ensure a good mental state.

In general, it is necessary to carry out the action to avoid logistics errors. High error rate will lead to a decline in the reputation and prospects of a company, which requires great attention.

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What a responsible colleague! He is checking the order details with a mask on his face.

How to Deal with Return and Exchange Issues Better?

The returns and exchanges of ecommerce order are very troublesome for many order fulfillment warehouse. When the buyer returns the goods and sends them back to the warehouse, the packaging of the goods is basically in tatters. Some of the goods may be damaged, which takes a lot of time to process the goods again. So what are the difficulties of return and exchange?

1. The packaging of the goods is seriously damaged

After the seller checks the goods, the original packaging of the delivery company is often thrown away by the buyer at this time, and the buyer may find a bag and pack the goods for delivery. In the process of express delivery, the action of the delivery person is generally not too soft. If the goods are not so strong, the goods may have been damaged when they arrive at the warehouse and cannot be sold again.

2. Some dropshipping companies do not have fixed consignees:

Without a fixed person in charge, there will be no stable solution to the problem. If the product is scrapped and cannot be sold again, who should bear the cost? This may encounter situations where the staff shirk each other, which will seriously affect work efficiency.

3. More communication with the seller are needed

Asking whether the returned product can be sold after repairing and performing quality inspection. Of course, the above are only some of the issues listed, including many other issues, making the handling of returns the most troublesome work for warehouse personnel, and few people are willing to take the initiative.

Faced with such a situation, what is the solution of China Division?

1. Each part of the goods is responsible for the corresponding delivery staff to ensure that each product is owned by its own person in charge. Regardless of whether the goods are returned or exchanged afterwards, the personnel will follow up.

2. Contact the seller in a timely manner to ensure that the problem can be reported to the e-commerce seller to inquire about relevant handling matters.

3. For the goods whose packaging is relatively complete(has not been damaged) and does not affect secondary sales, strict inspection and control must be carried out, and then recorded and stored again. Besides, for the products that cannot be sold again are placed in a fixed processing warehouse, waiting for the seller to handle it.

How to Make the Most of the Order Fulfillment Warehouse?

From our previous customer surveys, we can find that many e-commerce sellers are curious about the warehouse planning rules. How are order fulfillment warehouses planned to increase the operating speed?

  • 1. Divide the warehouse into specific operating areas for picking, unloading and packing, which can facilitates employees to complete their work quickly.
  • 2. The door inside the warehouse should be opened outwards, and the effective area of the warehouse should be used reasonably.
  • 3. While reducing the channel space in the warehouse as much as possible, ensure the smoothness of the in and out channels to ensure that the stacking of goods will not affect the operating efficiency of the employees in the warehouse.
  • 4. While ensuring safety, increase the stacking height of goods.
  • 5. Make reasonable use of walls and shelves, and wrap the columns in the e-commerce cloud warehouse so that the columns will not block the access.
  • 6. Try to ensure that the route of goods in and out of the warehouse is one-way and straight, and minimize the tortuous passage. Besides, please avoid inefficient operations like reverse movement.
  • 7. The storage of goods should be placed in a position that is convenient for loading, unloading, warehousing and extraction.
  • 8. Set up a separate safe passage for the warehouse, and at the same time ensure that no debris can be stacked in the passage, and ensure that the passage is unblocked at all times.
  • 9. The warehouse is equipped with standard fire-fighting facilities, and the distance between each product area is in line with industry standards.
  • 10. Set up safety protection measures such as fire extinguishers, smoke alarm systems and anti-theft alarm systems.
  • 11. Set up ventilation and exhaust channels to ensure the normal circulation of air.

A Customer Interview about Order Fulfillment Warehouse Selection

Nowadays, online shopping has gradually become the main way of shopping for modern consumers. Especially affected by COVID-19, more and more consumers prefer to buy cheaper products on e-commerce platforms without leaving home. The advent of the era of online shopping has also allowed more people to see the business opportunities and choose to join the e-commerce industry. The number of e-commerce sellers and orders has increased rapidly, but the problem of warehousing and distribution has not been resolved. So e-commerce sellers will be more willing to cooperate with order fulfillment warehouses.

Last week China Division interviewed our client C, and he offered some thoughts about the selection of dropshipping company, here we share it with you.

He said for a large number of e-commerce sellers, the workers are limited, and they are responsible for warehouse inventory management and delivery. It’s acceptable in normal times, but it is not practical during a big promotion event. The proportion of returns and exchanges has increased significantly once such an event occurs. However, if we recruit enough people to handle the promotion event delivery, we don’t need so many people in normal times, which will lead to high labor costs and increase cost consumption. Therefore, warehousing outsourcing is a good choice for the companies like ours. Outsourcing this business to a third-party logistics company is responsible, so that you have enough time to be responsible for the store’s marketing and promotion work, as well as increase store sales and get more profits. In terms of delivery speed, the e-commerce seller who operate warehousing by itself  tend to deliver twice as fast as peer sellers who choose dropshipping company, which is very unfavorable for competition among peers. Timeliness of delivery is the guarantee of the favorable rate of consumer logistics and the key to the improvement of store ratings.

For professional e-commerce order fulfillment companies, the timeliness of delivery is often controlled within 48 hours, which is undoubtedly a very good shopping experience for consumers. Therefore, e-commerce sellers are more willing to cooperate with order fulfillment companies, and to improve the timeliness and accuracy of delivery while ensuring that consumption costs do not increase, increasing the competitiveness of the store in the end.

How Much Do You Know about the Cooperation Modes with Warehousing Companies?

It is reported that many e-commerce sellers have chosen order fulfillment warehouse to transfer warehousing and delivery. Have you ever figure out the following models with e-commerce warehousing and 3rd party logistics companies?

  • All-inclusive

 For some small and medium-sized e-commerce sellers who are not very large in scale, due to the small number of orders and the small number of products, the cost of operating and maintaining self-leased warehouses is a bit too large, and the price of express delivery will be relatively high, which greatly increases The overall operating cost. So choosing to outsource all warehousing and delivery to e-commerce warehousing logistics companies is undoubtedly a wise choice. For such small and medium-sized sellers, the savings are far more than just the cost and price, but also the energy and time costs.

  • Partial Outsourcing A

This model often appears when some large e-commerce promotions are coming, such as Christmas carnival and Black Friday. During large-scale promotional activities, many e-commerce companies will have insufficient staff and excessive orders. Then this part of e-commerce sellers may choose to cooperate with third-party warehousing and logistics companies for delivery, and deliver some of the hot-selling products in the warehouse to the e-commerce warehouse to ensure the timeliness of delivery and warehouse management, so as to give the store bring more benefits.

  • Partial Outsourcing B

Part of the outsourcing mentioned this time refers to the e-commerce sellers outsourcing some of the popular products or new products to a third-party warehouse during the non-big promotion period, helping themselves to share part of the pressure, or through this partial outsourcing method. Test the service quality of the warehousing logistics company, and after the expected cooperation effect is achieved, consider putting more goods into the third-party warehouse.

As for those e-commerce sellers who do not choose outsourcing service, in most cases they have large enough or small enough scales. On the one hand, they have enough economic capital and ability to build warehouses, and they have close relationships with express logistics companies. There is no need to worry about high costs and insufficient energy for the cooperation; On the other hand, because their scale is small enough, the number of orders and the products are small, there is no need to rent warehouses and hire people to assist. Generally speaking, just a few people can be handle all the work.

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.

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.

Three Reasons of Fulfillment Centers Start a Business in Shenzhen

As a cross-border e-commerce entrepreneur, you will be surrounded by many choices when finding the warehouse address. However, you will take many detours on the way to your cheapest fulfillment service. What’s worse, some Amazon sellers have been very confused about global ecommerce fulfillment owing to the Amazon warehouse fire and COVID-19.

To tell you the truth, Shenzhen warehouse plays an inportant role in the international orfer fulfillment. A latest study concerning Chinese warehouse location indicated that 75% warehouses come from Shenzhen. Here we have summarized three reasons as shown below:

As you can check in Google Maps, Shenzhen is near the international parcel processing centre——Hongkong, which provides more convenience for picking, packing and shipping. Take Amazon ePacket tracking as an example, Shenzhen warehouse can sent the items directly if your customer has ordered successfully from your webstore. That is to say, you don’t need to manage your own warehouse or distribution center.

Shenzhen is the birthplace of China’s reform and opening up, where many foreign trade enterprises and drop-shippers had been created. So they have more experience in the field of warehousing and shipping for e-commerce, and it is hard to find disorderly shipping and wrong delivery. In this way, you can reduce business risk and increase customer satisfacton.

During COVID-19 pandemic, the majority of e-commerce sellers want continuous selling on AliExpress, eBay and Amazon. Therefore, it is essential to reduce the chance of infection with COVID-19, whether it is warehouse or transportation staff. The number of people diagnosed in Shenzhen is cleared on May 21. Additionally, the government insists on strict pandemic prevention work, requiring everyone in Shenzhen to measure body temperature every day, especially warehouses and catering staff, mask wearing and hand washing are indispensable work.

All in all, you can get a fully automated with less money and time if you choose the most suitable order fulfillment center, and Shenzhen is a competitive choice.