The same goes for warehouse mapping for ecommerce brands. The warehouse mapping process isn’t just about organization; it’s absolutely critical to maintaining safety, creating efficient workflows, and optimizing your inventory storage and fulfillment.  

In this guide, we’ll break down the key components of an effective warehouse mapping system, share real-world strategies for creating your own, and show how smart mapping can transform your warehouse into a high-performance fulfillment engine. 

What is warehouse mapping? 

ARROW: Warehouse mapping is the systematic process of identifying, positioning, organizing, and labeling all storage areas, work zones, and travel paths within a warehouse facility.  

A warehouse map can be physical or digital, but is always a visual representation of the physical space that serves as the foundation for all warehouse operations.  

At its core, warehouse mapping is about creating a clear, logical system for organizing and navigating your warehouse or fulfillment center. It involves breaking the entire facility down into distinct sections, each with its own purpose and identifying label. These locations are then mapped onto a grid or diagram, providing a bird’s-eye view of the entire operation. 

But warehouse mapping goes beyond just creating a basic layout or floor plan. A comprehensive mapping system includes detailed location codes for each storage bin, shelf, or pallet rack position. It also designates specific zones for different operational functions, such as receiving, picking, packing, and shipping.  

By creating this level of granularity, warehouse mapping enables precise inventory tracking, optimized pick paths, and safe and streamlined workflows. 

Key elements of warehouse location mapping 

One of the most critical components of warehouse mapping is location mapping. This involves creating a unique identifier or address for every single storage position in the facility, down to individual bins and shelf levels. 

Effective location codes typically use an alphanumeric or coordinate-based system. For example, a location code might read as “A-01-B-22,” indicating that the product is stored in Aisle A, Bay 01, Shelf B, Position 22.  

Precise location mapping is essential for reducing search times and minimizing errors. When pickers can quickly and easily locate the items they need, it dramatically speeds up the order fulfillment process. Additionally, when every item has a designated home, it’s much less likely to be misplaced or lost in the shuffle. 

Benefits of implementing warehouse mapping 

Implementing a comprehensive warehouse mapping system can have a profound impact on your ecommerce fulfillment operations. Here are some of the top benefits of effective warehouse mapping. 

Faster picking times and sharper accuracy 

One of the most immediate benefits of effective warehouse mapping is a dramatic reduction in picking times. When every item has a designated location that’s easy to find, your pickers can navigate the warehouse quickly and confidently. This can translate to shorter picking times, which means orders can get processed and shipped faster. 

Mapping can also supports higher picking accuracy. With a clear system in place, there’s far less risk of pickers grabbing the wrong item or quantity. This means fewer mis-picks, fewer returns, and happier customers who consistently get exactly what they ordered. 

Greater inventory visibility and control 

Another key advantage of warehouse mapping is the real-time visibility it provides into your inventory. When every SKU has a designated home, it’s much easier to know exactly what you have in stock, how much of it you have left, and where it’s located at any given moment. 

This level of awareness is critical for preventing both stockouts and overstocking. With better visibility into your inventory, you are more likely to spot low inventory levels and restock in time, and can avoid accidentally tying up capital in excess product – both of which improve inventory turnover, reduce your carrying costs, and keep your bottom line healthy. 

Optimized space utilization 

Warehouse mapping is also a powerful tool for making the most of your available space. By analyzing your current layout and product placement, you can often identify underutilized areas and opportunities for consolidation. 

For example, mapping your warehouse might inspire you to adopt warehousing racks to leverage your vertical space, or widen your aisles slightly to allow for quicker, safer paths for people and equipment. 

Streamlined onboarding and training 

Finally, a well-designed mapping system can be a game-changer when it comes to onboarding and training warehouse staff. With a clear location coding system and intuitive organization, new team members can get up to speed much faster. 

This is especially valuable during peak seasons, when you may need to bring in temporary workers to handle increased order volume. Rather than spending days or weeks orienting them to complicated or unstandardized systems, solid mapping allows them to hit the ground running and be productive almost immediately. 

How to create a comprehensive warehouse mapping system (in 5 steps) 

Creating a comprehensive warehouse mapping system is a multi-step process that involves careful planning, execution, and continuous optimization.  

By following these five steps, you can develop a mapping system that streamlines your warehouse operations and sets the stage for long-term success. 

1. Assess your current warehouse layout and operations 

The first step in creating an effective warehouse mapping system is to evaluate your current setup. Take a close look at your existing layout, workflows, and pain points. Are there areas of congestion or inefficiency? Do your pickers struggle to find items quickly? Document these challenges and gather input from your warehouse staff about their day-to-day workflow obstacles, as these valuable insights can help you prioritize changes that will have the greatest impact on productivity. 

It’s also important to establish a baseline for key performance metrics like picking times, error rates, and inventory accuracy. These numbers will help you measure the impact of your new mapping system once it’s in place. 

“Before we implemented ShipBob’s WMS, our order accuracy rate was around 92%. Now we’re at 99.7% for order accuracy, which equates to 2,100 less mispicks a year on average. ShipBob’s system for picking orders has cut down on labor costs, reduced lost inventory, and eliminated the need for double shipping.

Our order picking and routing has also greatly improved with ShipBob. With the ShipBob WMS, we can create the most efficient routes through the warehouse, which has cut down on an insane amount of time and made picking, packing, and shipping so much more efficient.

We’re going to be expanding our warehouse space from 10,000 sq. ft. to 16,000 sq. ft., and for getting started in the new space we won’t even need ShipBob to come out and assist us with that move. They taught us how to do everything: get the locations up, map the warehouse, everything. We’ll be able to onboard ourselves which is cool to see.”

Jourdan Davis, Operations Manager at Pit Viper 

2. Define warehouse zones alongside operational functions 

Next, it’s time to segment your warehouse into logical zones based on your core operational functions. Common zones include receiving, storage, picking, packing, and shipping. The goal is to optimize the placement of each zone based on the natural flow of products through your warehouse. 

For example: 

• Place your receiving area near your warehouse’s main loading docks, and keep a clear path from receiving to your storage zones. 
• Your picking and packing areas should be centrally located to minimize travel time for your pickers.  
• If you have products with special storage requirements (such as temperature control for perishable goods, secure storage for high-value items, or separate handling for hazardous materials), be sure to designate appropriate zones for those items to ensure compliance and product safety. 

3. Establish a consistent location coding system 

The heart of any warehouse mapping system is a standardized, intuitive location coding scheme. This is how you’ll assign a unique identifier to every storage location in your warehouse, from racks and bins to pallets and floor spaces. 

There are many different approaches to location coding, but one of the most common is a hierarchical system that combines letters and numbers to indicate the zone, aisle, rack, level, and position of each location. For instance, a code like “A-03-R2-L4-P1” would indicate that the item is located in Zone A, Aisle 3, Rack 2, Level 4, Position 1. 

When designing your coding system, aim for a balance of simplicity and specificity. Your codes should be easy for your staff to interpret at a glance, but detailed enough to pinpoint precise locations. It’s also wise to build in some flexibility for future expansion. 

4. Leverage visual aids and physical labeling 

Clear, durable labels and signage are essential for making your warehouse mapping system easy to navigate. Every location code should be physically represented on your racks, bins, and shelves. 

Consider using color-coding to enhance visual recognition. For example, you might assign a different color to each zone or product category. Be sure to place labels in consistent, visible locations, and use fonts and sizes that are easy to read from a distance. 

If possible, incorporate a scannable barcoding or QR code system into your labeling scheme. This will allow you to integrate your physical labels with digital inventory tracking systems for real-time accuracy. 

5. Document the master map and train your team 

Finally, it’s time to create your master warehouse map. This should include both physical and digital versions that document your entire layout, zone configuration, and location coding system. 

For your digital map, consider using specialized warehouse mapping software or CAD tools that allow you to create detailed, interactive representations of your facility. These digital maps can serve as valuable training and reference tools for your team. 

Once your master map is complete, be sure to allocate sufficient time to educate your staff on the new mapping system. Develop clear SOPs that outline how to interpret location codes, navigate the warehouse efficiently, and maintain the integrity of the system. Quick-reference guides and cheat sheets can also be valuable tools for reinforcing the training and helping new hires get up to speed quickly. 

Remember, warehouse mapping is an ongoing process. As your business grows and evolves, so too should your mapping system. Plan to review and optimize your maps regularly, and always be on the lookout for opportunities to fine-tune your warehouse organization for faster, more accurate order fulfillment. 

“ShipBob’s WMS has turned out to be exactly what I hoped it would be. They have built a really robust software system that does a fantastic job at running warehousing and fulfillment operations. Once your team is trained on the system (which takes a few hours at most), it becomes easy to set things on autopilot and establish a repeatable process.”

Ben Tietje, Co-Founder and CEO of Earthley 

Helpful warehouse mapping tools and software solutions 

While a well-designed warehouse map is essential, technology can greatly enhance the effectiveness and efficiency of your mapping system. From basic spreadsheets to advanced warehouse management systems (WMS), there are a variety of tools available to support your mapping efforts. The key is choosing a solution that aligns with your current needs while also providing room for future growth. 

How ShipBob optimizes warehouse mapping for ecommerce fulfillment 

At ShipBob, we understand that effective warehouse mapping is essential for streamlining ecommerce fulfillment and delivering a best-in-class customer experience. That’s why we’ve developed a comprehensive approach to mapping that leverages the latest technology and best practices to optimize inventory management, order processing, and shipping across our global fulfillment network. 

Smart inventory mapping and distribution 

Before you decide how you’ll store your inventory in a warehouse, you’ll have to figure out which warehouse location(s) will be best for your brand – and ShipBob can help. 

With dozens of fulfillment centers worldwide, your ecommerce brand can strategically distribute your inventory across multiple facilities (including your own warehouse, if applicable) through ShipBob’s Inventory Placement Program. Our algorithm leverages your business’s order data to determine the most optimal physical split of inventory that best enables you to meet demand.

From there, all you have to do is send your inbound inventory to a single designated receiving hub, and we’ll take care of regionally distributing and stowing your products for you. 

This approach, powered by our hub-and-spoke warehousing model and robust technology, enables you to reduce shipping costs and transit times by storing inventory in the optimal locations for fast, efficient fulfillment. With real-time visibility into inventory levels and locations across the network, you can make informed decisions about where to store products based on regional demand patterns and shipping requirements. 

Real-time inventory tracking across multiple fulfillment centers 

ShipBob’s proprietary warehouse management system provides a centralized platform for tracking inventory across multiple fulfillment centers in real time. Our system maps the precise location of every SKU down to the bin level, ensuring that you always have accurate visibility into stock levels and availability. 

This real-time tracking is critical for preventing stockouts and backorders, as our system will automatically alert you when inventory levels run low at any location. With ShipBob, you can proactively replenish inventory based on real-time data, ensuring that the right products are always available in the right locations to meet customer demand. 

In addition, our dashboard provides visibility at-a-glance into key metrics, such as inventory turnover, SKU velocity, and regional demand patterns. Leveraging these insights along with location-specific warehouse mapping, you can optimize your inventory distribution strategy to reduce carrying costs and improve overall efficiency. 

Automated order allocation based on optimal fulfillment location 

ShipBob’s technology takes the complexity out of multi-location fulfillment by automatically routing each order to the optimal fulfillment center based on a variety of factors, including: 

• Inventory availability: Our system checks stock levels across all locations to ensure that the ordered items are available for fulfillment. 
• Shipping destination: We analyze the shipping destination and select the fulfillment center that will provide the fastest, most cost-effective delivery based on proximity and your preferred carrier options. 
• Shipping method: Our technology factors in the selected shipping method (e.g., standard, expedited, or 2-day) to ensure that orders are routed to a fulfillment center that can meet the required transit time. 

This automated order allocation process eliminates the need for manual order routing and ensures that each order is fulfilled from the optimal location. As a result, you can reduce shipping costs, improve transit times, and provide a better overall experience for your customers. 

ShipBob WMS for intelligent warehouse mapping with less effort 

If you’d rather keep some or all of your fulfillment in-house rather than outsource it, ShipBob WMS – the same WMS that powers our extensive network of fulfillment centers globally – can optimize both your warehouse mapping and your operations.  

Our hands-on onboarding offers virtual or on-site implementation with zero downtime, where an expert from ShipBob will help evaluate your current layout and consult on changes to improve efficiency throughout.  

“Implementing ShipBob’s WMS in our warehouse was so much easier than I expected, because ShipBob sent a representative out to our warehouse for a couple of weeks to essentially revamp our entire operation.

We got new racking and equipment, and they showed us how to set up all our inventory storage locations, hardware, and software, including both their desktop and WMS application (ToolBob) for managers and the mobile app for pickers (MiniBob).

Most importantly, they didn’t leave until everything was right. It wasn’t like they had a deadline for finishing the setup, and if we didn’t meet it, we’d have to finish on our own – not at all. Instead, they took their time and made sure we were in a good place and were comfortable operating independently before they left. They never left us high and dry.”

Tim Poyer, VP of Operations and Logistics at Elwood Clothing 

ShipBob WMS is also designed with all the built-in requirements and capabilities you need to maximize your inventory storage and fulfillment performance, including: 

• The option to upload images of your products for additional checks and balances at every stage 
• Location-specific inventory visibility 
• Intelligent cycle counts 
• Order counts at the picked, packed, and labeled statuses 
• Flexible options for batch, auto-cluster, custom cluster, and single-order picking 
• Prescriptive, visual step-by-step packing flows 
• Seamless integrations with major ecommerce platforms and tools 

For more information on how ShipBob can help you optimize your warehouse mapping and beyond, click the button below to get in touch.  

Warehouse mapping FAQs 

Here are answers to some of the most common questions about warehouse mapping. 

What is the difference between warehouse mapping and warehouse location mapping? 

Warehouse mapping is the systematic process of identifying, positioning, organizing, and labeling all storage areas, work zones, and travel paths within a warehouse facility. Warehouse location mapping is one component of warehouse mapping, and specifically focuses on creating a precise addressing system for each individual storage position within the facility.  

How often should I update my warehouse map? 

As a general rule, it’s advisable to review and update your warehouse map at least once per quarter. This regular cadence helps ensure that your mapping stays aligned with any changes in your operations, inventory, or business needs. 

What are the most common warehouse mapping mistakes to avoid? 

Common pitfalls in warehouse mapping include:  

• Creating overly complex or unintuitive location codes 

• Neglecting the importance of clear and visible signage throughout the facility 

• Inadequate training on the mapping system 

To avoid these issues, aim for a balance of precision and simplicity in your mapping, prioritize visual clarity in your labeling, and invest ample time in training your team. 

The post Warehouse Mapping: The Backbone of Efficient Ecommerce Fulfillment appeared first on ShipBob.

What is inventory replenishment?

Why is inventory replenishment important for thriving businesses?

3 effective inventory replenishment methods

Inventory replenishment tips for success

Inventory replenishment is easy with ShipBob’s fulfillment services

Optimize your own inventory management with ShipBob’s WMS

Conclusion

Inventory replenishment FAQs

After hours of searching online, you finally find the product you’ve been looking for — only to find out it’s out of stock. It’s a huge let down, and it’s a lost sale for the merchant.

Even if the product is temporarily out of stock, it will take much longer to fulfill and ship. 34% of businesses ship orders late due to items being out of stock at the time of purchase.

Inventory management is a crucial part of the ecommerce supply chain that impacts customer loyalty and the overall brand experience.

Managing inventory involves maintaining optimal stock levels, so all products featured on your store are in stock and ready to ship. 

In this article, you will learn about the inventory replenishment process, why it is important, and how a fulfillment provider like ShipBob can help.

What is inventory replenishment?

Inventory replenishment, also known as stock replenishment, is the process of restocking products in line with current demand to prevent shortages and minimize excess inventory. This process involves moving items from reserve storage to active picking locations or receiving new shipments from suppliers, ensuring orders are fulfilled on time across all sales channels.

When the replenishment process is managed correctly, there is enough inventory ready to be picked and packed as soon as each order comes in. Inventory replenishment is one of the most essential logistics operations tasks as it can highly impact customer satisfaction.

How inventory replenishment works: 5 key factors that drive stock management

1. Lead times – Lead time, or the period between ordering and receiving inventory, is a critical part of the inventory replenishment strategy. Longer lead times require earlier reordering and higher safety stock to maintain supply chain efficiency and prevent stockouts.

2. Demand forecasting – Accurate demand forecasting helps businesses predict future inventory needs based on sales data, seasonality, and trends. When demand is well-forecasted, inventory replenishment becomes more efficient, reducing the risk of overstocking or running out of products.

3. Reorder points (ROP) – Reorder points are preset inventory levels that signal when it’s time to place a new order. Calculating ROP based on average sales and supplier lead times allows businesses to automate stock replenishment and maintain optimal inventory levels.

4. Safety stock – Safety stock is extra inventory kept on hand to cover unexpected spikes in demand or supply delays. It’s a key component of inventory control that helps reduce the risk of lost sales while keeping your fulfillment operations running smoothly.

5. Inventory replenishment costs and profitability – Inventory replenishment comes with purchasing, storage, shipping, and handling costs that directly impact profit margins. Optimizing order quantities and timing helps reduce carrying costs and improve overall inventory management efficiency. Keeping replenishment cost-effective is key to maintaining a healthy supply chain and maximizing ROI.

Why is inventory replenishment important for thriving businesses?

Efficiently replenishing inventory is a critical process that directly impacts an online brand’s ability to meet customer demand, fulfill orders, and turn a profit. Here are three reasons why inventory replenishment is important for ecommerce retailers.

1. Avoid stockouts

If a merchant fails to replenish inventory at the correct time, they risk having a stockout, which consists of items being out of stock at the time of purchase.

Backorders can also occur, which means an order has a pre-determined date on when the item will be available to ship. Both stockouts and backorders can cause major frustration for your customers. 

The best way to avoid common stockout issues is to always have safety stock, a certain amount of back-up or emergency inventory on hand. This is also a good idea in case there is an unexpected supply chain issue (which many merchants experienced when the COVID-19 pandemic hit).

2. Prevent overstocking

A smart inventory replenishment process can also help prevent overstocking on inventory that might become unsellable if it sits too long, including food and beverages or beauty products that have an expiration date. Similar to not having enough inventory, overstocking can also impact your bottom line. 

Replenishing stock too early or without regard to changes in customer demand orseasonalitycan causedead stock, which increasescarrying costsby having unsellable inventory sit on shelves for too long.

To avoid overstocking and high warehousing logistics costs, the economic order quantity (EOQ) formula is a simply way to find the optimal amount of inventory to have on hand to meet order demand.

By calculating EOQ, you gain a better understanding of how much inventory, including safety stock, you should have on hand while keeping ecommerce warehousing costs as low as possible.

3. Reduce shipping costs

Let’s say a customer ordered several items from you at the same time. If one item is out of stock at the closest warehouse location to the customer but is available at a different location, you would need to send asplit shipment (sending different items from one order in separate packages, often from a different location or at a different time) to fulfill the customer’s entire order.  

Sending items from one order in multiple shipments increases shipping costs, creates more packaging waste, and can cause customers to be confused. By forecasting demand, you can decide how much inventory at the SKU level to store at each warehouse location based on historical data.

Note: Spitting your inventory across fulfillment centers is a retail supply chain best practice that consists of keeping inventory closest to your customers.

It canreduce shipping costsandlast-mile delivery. However, each fulfillment center location should always be stocked with the right amount of inventory for this fulfillment strategy to work the way it should.

3 effective inventory replenishment methods

Different ecommerce retailers employ different replenishment methods, depending on their business model, monthly order volume, and products. If you are hitting roadblocks with your current replenishment strategy, here are three effective inventory replenishment methods to adopt. 

1. Reorder point method

Inventory reorder points helps to ensure you always have enough stock on hand to satisfy customer demand. Reorder points also provide more financial flexibility by keeping a minimum amount of inventory in stock at all times.

Thereorder point formula (demand during lead time + safety stock) helps you calculate the right stock levels to meet customer demand, so you know the reorder quantity you need and when based on historical order data.

Note: Keep in mind that a single reorder point will not work for everySKU — all products have different reorder points and should be calculated accordingly. 

2. Top-off method

When your inventory includes a lot of fast-moving SKUs, the top-off method tends to be the most suitable inventory replenishment strategy.

Using this strategy, inventory levels for a particular product are “topped off” in their respective storage locations during slower periods or down time, so that you can maintain a highinventory turnover ratewithout encountering stockouts for pickers. 

3. Periodic inventory replenishment method

Using the periodic inventory replenishment method, inventory is restocked at set intervals. Inventory levels are only assessed at periodically specific times or dates, no matter how low stock levels may drop before that point. This method is mostly used in warehouses with larger storage capacity.

Inventory replenishment tips for success

An effective inventory replenishment strategy takes planning and effort to develop. While planning replenishment, you should always do your research and incorporate the following three best practices into the process. 

1. Implement the right technology

Having the right ecommerce tech stack in place can help youoptimize your supply chain.

For instance, implementinginventory management softwareis an easy way to provide more visibility into inventory levels in various locations in real-time, which can help you make better inventory decisions. 

By usinginventory automation tools for inventory optimization, you can easily stay on top of inventory control, track inventory trends, and avoid common stock issues. 

“Another ShipBob integration I love is Inventory Planner. It saves me hours every week in Excel spreadsheets, and I can raise a PO in minutes when it used to take me hours.

For every order I placed for years, I was ordering too much or not enough. Between inventory forecasting tools and the ability to auto-create WROs, we don’t have stockouts much anymore. I sleep better at night.”

Wes Brown, Head of Operations at Black Claw LLC

2. Use inventory replenishment data

Having access to real-time inventory data gives you insights into which items are slow moving versus fast moving, so you can make better decisions on when it’s time to reorder inventory.

Armed with this data, you will be able to improvedemand forecasting, calculatesafety stock quantities, identifyinventory turnover rate for your products, and other considerations that can impact your business financially. 

“We love ShipBob’s technology. The dashboard is very intuitive and the integrations are also very good. For my Shopify store, I just sync it and my new products show up straightaway in ShipBob. I like to look at the analytics in the ShipBob dashboard, knowing exactly what I have for storage. I can also set up alerts to know when I’m low on inventory for certain products to make replenishment easier.”

The IZIMINI team 

3. Create better inventory management strategies

Inventory replenishment is just one function of the entire inventory management process. Without a proper inventory management process, it will be difficult to make decisions on when it’s time to reorder inventory. 

Regular inventory audits, standardwarehouse receivingprocedures, and warehousing best practices can help you track inventory more efficiently.

Holding costs — including warehouse staffing, storage, shrinkage, and depreciation costs — should be closely monitored and calculated to ensure there is no major cuts into profit margins. 

“We rely heavily on ShipBob for inventory tracking and forecasting and that’s been a key part of our partnership. Our area of expertise is not logistics or inventory management, so we lean on ShipBob a lot for that.

We’ve learned so much about this industry since working with ShipBob, as they are true supply chain experts, which has been good for everyone on our team. When thinking about fulfillment, there’s such a focus on the packing and shipping aspect that the inventory management piece can often go unnoticed. But ShipBob’s ability to help us track and reconcile inventory is really great.“

Callie Tivnan, E-commerce Manager, and Christina Williams, Customer Success Manager at Barefaced

Inventory replenishment is easy with ShipBob’s fulfillment services

ShipBob offers ecommerce brands of all sizes best-in-class fulfillment solutions, aglobal fulfillmentnetwork, and proprietary technology.

ShipBob offers ecommerce fulfillment services, fromwarehousingtoorder fulfillment, kitting to automated shipping and returns processing, so our customers have what they need to build an end-to-end ecommerce solution.

ShipBob’s technology includes built-in inventory management software, as well as an advanced data and analytics reporting tool.

“We have a Shopify store but do not use Shopify to track inventory. In terms of tracking inventory, we use ShipBob for everything — to be able to track each bottle of perfume, what we have left, and what we’ve shipped, while getting a lot more information on each order.”

Ines Guien, Vice President of Operations at Dossier

All from one dashboard, you can track inventory levels in real time, set automatic reorder points, and access important inventory insights, such as inventory forecasting tools, to help you make better business decisions. 

ShipBob provides everything you need to manage inventory and fulfill orders accurately at your fingertips, so you can optimize your supply chain and save on time and money as your business grows.

Optimize your own inventory management with ShipBob’s WMS

For brands looking to store inventory and fulfill orders within their own warehouses, ShipBob’s warehouse management system (WMS) can provide better visibility and organization.

Ecommerce merchants can now leverage ShipBob’s WMS (the same one that powers ShipBob’s global fulfillment network) to streamline in-house inventory management and fulfillment. With real-time, location-specific inventory visibility, intelligent cycle counts, and built-in checks and balances, your team can improve inventory accuracy without sacrificing operational efficiency.

For brands looking to scale internationally, ShipBob even offers a hybrid solution where merchants can employ ShipBob’s WMS technology in their own warehouses while simultaneously leveraging ShipBob’s fulfillment services in any of ShipBob’s fulfillment centers across the US, Canada, Europe, and Australia to improve cross-border shipping, reduce costs, and speed up deliveries.

Conclusion

Optimizing inventory levels might seem challenging, but with a third-party logistics (3PL) partner like ShipBob, you can outsource fulfillment and let the experts take care of retail warehousing, inventory management, and retail fulfillment for you. This way, you can spend less time on fulfillment logistics and more time on building your online business. 

“So many 3PLs have either bad or no front-facing software, making it impossible to keep track of what’s leaving or entering the warehouse.

On the supply chain side, I just throw in what we placed at the factory into a WRO in the ShipBob dashboard, and I can see how many units we have on-hand, what’s incoming, what’s at docks, and so on. I can see all of those numbers in a few seconds, and it makes life so much easier.”

Harley Abrams, Operations Manager of SuperSpeed Golf, LLC

To learn more about how ShipBob works, click the button below. 

Inventory replenishment FAQs

Here are answers to ecommerce business owners’ most frequently asked questions about inventory replenishment.

What are replenishment orders?

Replenishment orders are orders that a merchant files with a manufacturer to receive more raw products to go into reserve storage, so that the merchant can continue moving inventory onto picking shelves, into fulfillment, and through the supply chain.

What role do lead times play in inventory replenishment?

Lead times directly impact inventory replenishment and how much stock needs to be reordered. In supply chain management, longer lead times require earlier planning and higher safety stock to prevent inventory shortages or delays. Accurately calculating supplier lead times helps businesses optimize inventory levels, reduce stockouts, and avoid overstocking, ultimately improving order fulfillment efficiency and customer satisfaction.

How do you increase inventory replenishment?

To increase inventory replenishment, you first need to have a high inventory turnover rate, meaning that you sell inventory at a quick pace and thus must replenish often, and a low days sales in inventory, meaning that you sell through your entire inventory quickly. This is not necessarily something that merchants have control over, as they are at the mercy of customer demand and market trends.

However, demand forecasting and data-driven inventory management can help an ecommerce business determine when and how often they should replenish their inventory.

The post What Is Inventory Replenishment? Meaning, Processes, and Best Practices for Online Retailers appeared first on ShipBob.

Customer Profile

Based in Warrington, UK, CRIMPiT originally started as a sandwich bread sealer that allows users to create perfectly secure sandwiches that can be toasted in the toaster or air fryer. Over time, CRIMPiT’s loyal customer base of “CRIMPiTeers” requested additional kitchen tools, which resulted in the brand offering burrito, taco, and small sandwich sealers. CRIMPiTs are sold around the world on their website, as well as TikTok Shop, QVC, and a growing list of retailers. 

Key metrics

• 350,000+ CRIMPiT households worldwide
• 6 ShipBob fulfillment centers in 3 countries  
• 45% reduction in US domestic shipping cost 
• 112 hours saved per week by outsourcing fulfillment to ShipBob
• 20x orders in a 24-hour period and 100x order growth on TikTok Shop in weeks, all handled seamlessly by ShipBob  
• 4.5 star rating on TrustPilot with nearly 20k reviews  

About CRIMPiT

Ian Critchlow spent countless mornings waking up at 4 AM to make high-carb toasted sandwiches for his son before he went to swim practice. But necessity breeds innovation. And for Ian, that meant creating a toastie maker that would simplify his early morning routine.  

Ian created CRIMPiT, a small kitchen appliance that secures the sides of bread that has been stuffed with delicious fillings so the toppings don’t fall out in the toaster. The result is a perfectly crimped toastie. 

The brand quickly ramped up in the UK, and thousands of orders flooded in. During the beginning phases of the business, Ian and his co-founder, Michael Harper, fulfilled orders from their homes and took packages to the post office to ship them to customers. Eventually, the team moved fulfillment to their own warehouse.  

But after space constraints and peak season order throughput became an obstacle, CRIMPiT decided to outsource fulfillment to ShipBob. Learn how the brand reaches customers around the world and on a variety of channels with ShipBob as their fulfillment partner.  

Moving from in-house to outsourced fulfillment and saving up to 112 hours per week 

As told to ShipBob by Michael Harper, Co-Founder of CRIMPiT, and Sean Togher, Finance Director at CRIMPiT. 

On top of physical constraints, our senior team spent upwards of 16 hours per day, 7 days a week in the warehouse during Q4, moving pallets, managing labor, sorting out label issues, and solving other fulfillment issues. 

It was at that point that we realized we needed to find a fulfillment provider that could manage these seasonal peaks and troughs for us.   

“Since outsourcing fulfillment to ShipBob, we regained a considerable amount of time that we have been able to allocate to growing the business. As a result of our partnership, we’ve been able to channel the energy previously spent on fulfillment into marketing, which has greatly helped move the needle.” 

– Michael Harper, Co-Founder, and Sean Togher, Finance Director at CRIMPiT

While we’ve been able to completely move order fulfillment to ShipBob, we still use our warehouse in the UK for office space, excess inventory storage, and as a studio for content creation. Because we have a global audience, it’s important for us to localize our marketing for each country. An image created for our UK customers will likely need to be tweaked by roughly 20% to appeal to our US customers. Having dedicated studio space allows us to work more efficiently and create more content. Outsourcing fulfillment allowed us to do that.  

When you’re in the weeds of order fulfillment, you can lose oversight of the business. Outsourcing fulfillment to ShipBob has allowed us to think more strategically, make plans, and add value to the business. 

Partnering with ShipBob for fulfillment and ultimately unlocking a myriad of benefits 

We chose ShipBob as our fulfillment partner and it has been a huge advantage for our business. We knew we wanted to work with a partner that had a global fulfillment network and could support our scale.  

Another benefit of working with ShipBob is leveraging multiple carriers. We were fulfilling our own orders during the Royal Mail strikes, and it was horrendous. It caused so many issues with customers. Whereas with ShipBob, we would have been able to easily switch carriers, to greatly help us. 

Not only does ShipBob have solid technology that they’ve developed, but they also work with carriers and partners for regular updates and improvements. We don’t have to worry about the technology and changes, we can just plug into the dashboard and do what we need to do. 

“One of the best parts of working with ShipBob is our account manager. She’s probably the best account manager we’ve ever experienced with a business. She goes to bat for us and is a strong advocate for CRIMPiT.” 

– Michael Harper, Co-Founder, and Sean Togher, Finance Director at CRIMPiT

We’ll ask her if she’s available to jump on a call and within 20 minutes we’re talking on the phone to resolve any questions we have. Also, since we’re within the UK and an hour from the fulfillment center, if we ever need to be face-to-face, we can easily do that. There are a lot of benefits to working with ShipBob’s team. 

Leveraging ShipBob in 3 countries to save money while standardizing fulfillment processes and improving the customer experience 

As a global business, we wanted to find a partner that had fulfillment centers in multiple countries.    

“With ShipBob we’ve been able to create a standardized model for the UK, Europe, and North America. With ShipBob’s integrations, we have the same platform for Shopify and Amazon and our payment mechanisms are the same. This has allowed us to have one standard that we operate at across countries.”  

– Michael Harper, Co-Founder, and Sean Togher, Finance Director at CRIMPiT

For an ecommerce brand to ship small-value items post-Brexit, there are numerous complexities with taxes and duties. We’ve expanded into ShipBob’s Netherlands fulfillment center, and that has helped resolve our cross-border shipment issues. Having the ability to ship containers or pallets into the Netherlands from the UK has greatly improved the shipping experience for our European customers.  

Before we had a fulfillment center in Europe, shipments would get held up at customs while duties were demanded from the end customer. Quite often, the duty was more expensive than the product itself. That is no longer a challenge now that we have inventory within mainland Europe.  

Also, it’s very quick for us get inventory from the UK to ShipBob’s Netherlands fulfillment center. It takes about 24-36 hours for inventory to arrive and get replenished in the warehouse, which is incredibly helpful.  

“We use ShipBob to fulfill orders for our US customers. We initially used 1 fulfillment center there but have since added 3 more. Using 4 fulfillment centers in the US instead of just 1 took our average postage cost from $12 to $6.57.”  

– Michael Harper, Co-Founder, and Sean Togher, Finance Director at CRIMPiT

If we had worked with any other fulfillment provider that has just 1 fulfillment center in the US, we would have been struggling financially to make it work. But using multiple regions of ShipBob’s US fulfillment centers has made a massive impact on costs for in-country fulfillment there. 

As we continue to grow our global footprint, we’re able to test new markets relatively easily with ShipBob. Our partnership has opened up a lot of benefits.  

Meeting customers’ shipping expectations is challenging because retailers like Amazon are raising people’s standards. So ShipBob’s ability to offer fast fulfillment and shipping has allowed us to meet and exceed expectations, which has been reflected in our TrustPilot reviews. We get loads of reviews around shipping and orders getting delivered on time. Our community of CRIMPiTeers are an important aspect of our business, so we’re happy we can delight them with fast shipping.

Achieving seamless omnichannel fulfillment with ShipBob, even when orders unexpectedly 100x in volume 

Order volume spikes and the ability to forecast them are challenging for any business. We’ve had campaigns that have resulted in 20x the order volume in 24 hours. If we were fulfilling our own orders, we would have struggled to find staff at such short notice.  

Working with ShipBob has given us more structure around planning and forecasting. ShipBob is consistently reaching out to ask about promotions so they can scale up fulfillment center processes and staff as needed. As a result, we’ve been able to more seamlessly accommodate large order spikes with ShipBob as our fulfillment partner.  

Plus, selling on so many different channels can be unpredictable. One day, QVC will take off and the next, TikTok Shop orders are flying. What makes it extra challenging is some retailers like Amazon will punish you if you don’t fulfill orders in time.  

When we were doing fulfillment on our own, we prioritized Amazon orders so we wouldn’t be penalized. So while we were making our Amazon customers happy, customers that ordered from our website orders were unsatisfied. With ShipBob, we can ensure all customers, regardless of the channel they ordered from, are getting their orders on time. 

“TikTok Shop is a very new channel for us. In the last couple of weeks, it has gone berserk in the UK. We’ve probably 100x’d our orders on TikTok but have been working closely with the ShipBob team on those orders. They’ve been able to rapidly scale up staff to get orders out. We’re hitting the 2-day dispatch target, which is good, because then we get a badge on TikTok Shop which helps us sell even more.” 

– Michael Harper, Co-Founder, and Sean Togher, Finance Director at CRIMPiT

We’re making a big push in the US to grow our presence there. We’re looking forward to getting ShipBob’s support as we continue to grow. 

CRIMPiT’s team at ShipBob

Sam Ford

Sam is the Account Executive who helped CRIMPiT get started with ShipBob. 

Sergio Estevez

Sergio is the Implementation Specialist who onboarded CRIMPiT to ShipBob. 

Rachel Parkinson

Rachel is the Merchant Success Manager who supports CRIMPiT.

Get started with ShipBob

Ready to leverage ShipBob’s global omnifulfillment platform for your ecommerce brand? Connect with our team to learn more and get started.

The post How CRIMPiT Saves 112 Hours/Week and 45% On Shipping Costs with ShipBob [Case Study] appeared first on ShipBob.

Imagine your brand stores inventory in a huge fulfillment center, and pickers can only pick a single item for an order at a time. It might take them ages to walk all around your facility, picking up an individual product, and bring it back to their packing station before leaving to find the next one. Unsurprisingly, it also guts your operational efficiency.  

This is why a lot of ecommerce brands opt to leverage tote picking. By picking-to-tote, warehouse associates can spend less time walking around a warehouse and pick far more orders with less effort. 

In this article, we’ll unpack the pick-to-tote strategy, compare it to other picking strategies, and discuss how to optimize pick-to-tote systems with the right technology and partners.  

What is pick-to-tote (warehouse tote picking)? 

This enables pickers to pick all items for an order in one trip through a warehouse, instead of walking back and forth from storage to a packing station after picking each individual item. This, in turn, allows for more efficient handling and improves overall picking efficiency for high-volume order fulfillment. 

Overview of the pick-to-tote process 

The pick-to-tote process begins with a warehouse management system (WMS) generating a picking list that’s assigned to a dedicated picker. These picking lists include the items and quantities in each order, as well as the optimal route through the warehouse for minimal walking.  

Tote picking is a type of batch picking, meaning that pickers will almost always pick multiple orders at totes at a time. Each order gets its own dedicated tote, and the picker brings multiple totes with them as they move around the warehouse. 

The picker transports the totes using a pick cart, and travels through storage areas to retrieve items from their assigned list.  

Once they retrieve an item, the picker deposits it into a dedicated bin for the order, where it’s grouped with other items from the same order. That way, each order’s contents is already separated from the others once they’re sent to the next stage of fulfillment. 

Benefits of pick-to-tote for warehousing efficiency 

With pick-to-tote, all the items needed for an order are picked during the same trip through the fulfillment center. This minimizes the need to go back and forth between stations, reducing travel time and improving picking efficiency. Moreover, it helps to improve order accuracy, since tote picking makes it easier to see what items in what quantities have been picked for each order, which minimizes duplicate or missed items. 

Common use cases for pick-to-tote in order fulfillment 

While any warehouse of fulfillment center could use the pick-to-tote method, it’s particularly suitable for: 

1) Like orders or batches – If you receive lots of orders that share many of the same products, tote picking saves pickers the hassle of revisiting the same location multiple times. Instead, by grouping similar (or even identical) orders on the same cart, pickers can pick multiple items from a single storage location and add them to different orders’ totes to essentially pick multiple orders simultaneously. 

2) High-volume operations – If your brand must get orders out the door as soon as possible, tote picking minimizes repetitive actions and reduces travel time, helping your team pick orders faster. Tote picking also makes it easier to verify that each order is complete and accurate, which is crucial (as rushed picking is often more prone to fulfillment errors).  

How pick-to-tote compares with other picking methods 

How to choose the right picking method for your operations 

With multiple approaches to picking out there (including wave picking and zone picking, not described here), it can be hard to know if you’re using the right one. Before investing a significant amount of resources in one pick method, make sure you consider differnet factors of your business, including: 

• The size of your operations 
• The volume of orders you plan to fulfill 
• The types of products you’re selling, as well as their features (e.q.; size, weight, fragility, etc.) 
• The level of accuracy you want to maintain 

For example, pick-to-carton may be ideal for businesses dealing with a smaller product range, while pick-to-belt may be suitable for those with high-volume orders. Pick-to-tote, on the other hand, is ideal for businesses that fulfill lots of multi-item orders to ensure fulfillment accuracy. 

“I also love what ShipBob WMS has done for our fulfillment operations. With our old solution, there was no real method or any sort of organized way to pick orders; ShipBob’s WMS, on the other hand, offers many different flexible picking options that direct and optimize picking flows for us.

We use cluster picking, where ShipBob’s WMS automatically groups orders with common items together, assigns them all to one cart, and calculates the best route to take us through our warehouse and pick all those orders at the same time. Our fulfillment is so much more efficient now – we can easily ship 1-2K orders a day, no problem.

Before, averaging 15K orders a month would have been a struggle – but with ShipBob WMS, it’s a breeze. That capacity has been crucial to getting each customer their tracking number and their order out on time, which helps us win business and get even more orders.”

Tim Poyer, VP of Operations and Logistics at Elwood Clothing 

Technology and tools that optimize pick-to-tote systems 

Tote picking is already an efficient picking strategy, but it’s made even more efficient when ecommerce brands power it with the right tools. Here are just some of the technologies that brands can leverage to further enhance their pick-to-tote performance. 

Who benefits most from tote picking in a warehouse setting? 

Considering the ease and efficiency of tote picking, this pick method can be particularly beneficial for certain types of businesses. 

Growing ecommerce brands 

Even when an ecommerce brand is experiencing high growth with tons of orders coming in, they still need to meet high customer expectations to sustain that growth. Picking-to-tote can help brands deliver fast and accurate orders and effectively meet customer demand.  

However, the pick-to-tote strategy does require equipment, like bins, carts, and inventory scanning systems – resources that brands might not have the captial to purchase in the early stages of their growth. In these instance, partnering with a 3PL – or better yet, an expert fulfillment provider like ShipBob – that leverages tote picking allows DTC brands to efficiently manage their growth without the need to invest in extensive in-house logistics. 

Established retail brands 

Established retail brands consistently operate high-volume fulfillment environments (especially with the rise of multichannel retailing), so there’s always a need for these brands to prioritize cost savings and efficiency improvements.  

Tote picking streamlines warehouse logistics at scale, allowing large retail brands to seamlessly pick and fulfill thousands of orders across multiple channels. This enables them to effectively handle large volumes of orders while achieving cost-savings through productivity gains and reduced labor needs. 

Health and beauty brands 

It’s not uncommon for brands selling products related to beauty or health and wellness to deal with diverse SKUs and products that are typically small and fragile. This makes it particularly important to maintain safety and accuracy during the picking and handling process.  

Tote picking reduces the risk of mix-ups and damages during picking, ensuring careful handling and order customization. A fulfillment partner that’s well-versed in both tote picking and the specific fulfillment needs of health and beauty brands can also improve operational efficiency and accuracy. 

How ShipBob supports efficient pick-to-tote operations 

As an expert supply chain enablement platform, ShipBob offers both outsourced and in-house solutions for ecommerce brands looking to optimize their picking processes. Whether you store your inventory across any of ShipBob’s dozens of fulfillment centers worldwide or power your own facility with ShipBob’s WMS, our setup and technology lets you leverage flexible picking options and fulfillment best-practices for streamlined, cost-effective fulfillment.  

Here are just a few of the ways that ShipBob helps brands achieve faster, more accurate picking.  

Advanced WMS for real-time inventory and tote tracking 

Shipbob WMS gives you full, location-specific visibility into your inventory storage and warehouse operations to make picking and packing a breeze.  

Your picking staff can easily coordinate their movement across your facility, identify the right locations, and verify their picks through a barcode scanning process with built-in checks and balances to enhance accuracy and reduce fulfillment errors. 

“The technology employed by ShipBob guarantees accurate deliveries to our customers. ShipBob’s warehouse management system is equipped with numerous checks and balances, minimizing the possibility of incorrect items being shipped by warehouse associates.”

Ali Shahid, COO of Our Place 

Data-driven insights for continuous process improvement 

ShipBob’s WMS comes with built-in capabilities to track various performance metrics across your warehouse operations. This allows you to easily monitor KPIs to understand picking efficiency and order accuracy. You can then use these insights to optimize your warehouse management strategy and make ongoing improvements to your tote picking strategy. 

Flexible capacity for scaling brands  

ShipBob’s picking strategies and hybrid fulfillment solutions are designed to flex and scale with your brand as it grows to new heights and into new markets.  

Every fulfillment center in ShipBob’s network is powered by ShipBob WMS, delivering seamless standardization across any ShipBob facility your brand fulfills from. You can even leverage ShipBob’s fulfillment centers in tandem with your own warehouse(s), giving you a way to expand geographically (and even globally!) without investing capital that’s needed elsewhere.  

ShipBob also offers key fulfillment features and capabilities you may need as you scale, including: 

• Support for custom branded packaging, inserts, and gift notes for personalization that pops 
• Automated inventory allocation and placement to cut shipping times and costs  
• Omnichannel fulfillment for DTC and B2B channels to reach customers anywhere they shop 
• Integrations with dozens of ecommerce tools, marketplaces, and partners for a tailored tech stack 

“There are so many growth opportunities on the table for us – and because ShipBob offers so many different solutions and growth levers, we’re able to leverage our existing partnership to scale instead of having to go out and find different providers for every new expansion.”

Jessica Cedarleaf, VP of Operations at Tonies 

For more information on how ShipBob can help you optimize the picking process and more, click the button below to get in touch.  

Pick-to-tote FAQs 

Below are answers to the most commonly asked questions about the pick-to-tote strategy. 

How is pick-to-tote different from batch picking? 

Batch picking is a picking method that involves grouping multiple orders into one pick batch. Pick-to-tote is a common type of batch picking method, where a picker retrieves multiple items from the orders assigned in their pick batch and places them into dedicated bins for each order. 

Can pick-to-tote reduce labor costs in fulfillment? 

Pick-to-tote can reduce labor costs by minimizing unnecessary movements and reducing travel time. Since picking staff can fulfill more orders efficiently, it can help to reduce the overall labor required to fulfill your orders. 

How can pick-to-tote improve order accuracy in ecommerce?

Pick-to-tote processes allow picking staff to verify each pick and sort them into their respective bins. With the items in each order going through that initial sorting during the picking process, it can significantly improve order accuracy. 

The post How Tote Picking Transforms Warehouse Efficiency: An Ecommerce Deep Dive appeared first on ShipBob.

“Choosing ShipBob WMS to power our warehouse was the best decision I’ve ever made as a business owner. We have so many SKUs already, and we’re adding hundreds, maybe even thousands of SKUs every month, on top of growing order volumes.”

Tim Poyer, VP of Operations and Logistics at Elwood Clothing

Customer Profile

Based in Los Angeles, California, Elwood Clothing combines iconic fabrics, washes, and silhouettes to create classic, everyday wear that stands the test of time. Their unisex lines include hoodies, crew necks, T-shirts, sweatpants, and other wardrobe essentials – all inspired by authentic vintage design and detailing.  

Key metrics

• 100% growth YoY every year since 2020 
• $200,000 saved on shipping per year with ShipBob 
• 3,500+ SKUs 
• 70K orders/month fulfilled during peak with ShipBob WMS 

About Elwood Clothing

Elwood Clothing thinks everyone can look cool.  

When three business partners purchased Elwood from its previous owner in 2020, that was their mission: to create contemporary clothing that was wearable and stylish for everyone. 

The trio kept the name but pivoted the brand from fast-fashion to re-imaged streetwear that focused on vintage-inspired quality fabrics, with a core collection of affordable and timeless wardrobe staples.

Before long, Elwood’s sales started skyrocketing, and the brand has been growing 100% year-over-year ever since.  

We sat down with Tim Poyer, VP of Operations and Logistics at Elwood Clothing to discuss how ShipBob WMS has transformed their brand’s warehouse efficiency, cost-savings, and scalability.   

I thought my only option was outsourcing fulfillment and shipping completely, so I reached out to both ShipBob and one of their competitors. During my conversation with ShipBob, their team mentioned that that ShipBob actually offers its proprietary warehouse management software (WMS) as a standalone solution, so ecommerce brands can use it to power their own warehouses. 

I was thrilled! This meant that I could keep my existing warehouse facility, keep all my inventory where it was, and still optimize our warehouse operations. It was exactly what I was looking for.  

Getting hands-on onboarding in our warehouse for a flawless WMS transition

Implementing ShipBob’s WMS in our warehouse was so much easier than I expected, because ShipBob sent a representative out to our warehouse for a couple of weeks to essentially revamp our entire operation. We got new racking and equipment, and they showed us how to set up all our inventory storage locations, hardware, and software, including both their desktop and WMS application (ToolBob) for managers and the mobile app for pickers (MiniBob).  

“I couldn’t believe that ShipBob would actually send one of their team members out to our warehouse to be boots-on-the-ground and help us set up ShipBob WMS in our facility. I don’t know of any other provider that would do that. Usually, they show you the software, leave you to figure it out on your own, and tell you to reach out to support for questions. ShipBob was nothing like that – the onboarding was so hands-on, from beginning to end.” 

Tim Poyer, VP of Operations and Logistics at Elwood Clothing 

Most importantly, they didn’t leave until everything was right. It wasn’t like they had a deadline for finishing the setup, and if we didn’t meet it, we’d have to finish on our own – not at all. Instead, they took their time and made sure we were in a good place and were comfortable operating independently before they left. They never left us high and dry. 

Having someone right there with us to walk us through the whole implementation process in-person was amazing. We also had an Implementation Manager, Lacey, who helped coordinate all the onboarding and training for me and my team, which was awesome as well. Overall, we had so much support, and it really made the transition seamless.   

Optimizing picking through ShipBob WMS for peak efficiency 

ShipBob’s WMS has completely transformed our operations. It makes the receiving process very easy and straightforward, and the stowing tag system that’s built into the WMS has been so helpful. We also have a dedicated location for every SKU and corresponding barcodes that pickers scan to update inventory counts in the ShipBob dashboard in real time, which we never had when we were managing inventory through Shopify. Everything is so seamless now, even with thousands of SKUs in our portfolio.  

“Choosing ShipBob WMS to power our warehouse was the best decision I’ve ever made as a business owner. We have so many SKUs already, and we’re adding hundreds, maybe even thousands of SKUs every month, on top of growing order volumes. If we had kept using our old, patchworked approach to warehouse management and fulfillment, we would have been in a lot of trouble – we wouldn’t have been able to manage inventory or keep up with demand, let alone scale. ShipBob’s WMS allows us to do all of that. It’s been such a great solution for us.” 

Tim Poyer, VP of Operations and Logistics at Elwood Clothing 

Saving $200K with ShipBob’s carrier selection algorithm and logistics network 

We’re saving a lot of money on shipping thanks to ShipBob WMS. The software has the ability to leverage different carriers’ shipping rates against each other to give you the best rate for each order, both in terms of cost and transit time. This means we can automatically ship every order through the cheapest and fastest carrier option. 

We also get access to ShipBob Logistics, which includes ShipBob’s outbound sortation solution and has saved us time and money thanks to their economies of scale. We don’t have to sort DTC parcels manually by carrier anymore; all we have to do is label orders, and every day, ShipBob picks up gaylords of unsorted packages directly from our warehouse. That same day, ShipBob brings them back to one of their sortation facilities, where their automated sorters get each package in a gaylord for the right carrier, and then the carriers come pick them up for final-mile delivery. 

Because ShipBob has built out a large volume and density of outbound orders in the regions they operate in, carriers will come to their sites for pickups more frequently than what they’d do for a single brand. This means that our orders are getting picked up by carriers faster, which minimizes lead times. It also enables zone skipping, so we’re shipping orders from lower zones to save money while still getting orders to customers in a few days.  

“ShipBob Logistics has been great for us. Rather than having to sort every DTC package by carrier and service ourselves, everything goes into one bin and ShipBob picks it up, brings it to their facility, and sorts it there. It’s saved us enormous amounts of time and effort, and I don’t have to go back and forth with carriers all the time, or worry about whether they’ll have enough trucks, or if their trucks are too full, or if they’ll have to come back again to get another shipment. It’s been really great to hand off that aspect of logistics to ShipBob.” 

Tim Poyer, VP of Operations and Logistics at Elwood Clothing 

All in all, ShipBob’s saved us over a dollar per package, easily – and with us shipping out 200K orders in a year, that’s at least $200,000 that we get back on our bottom line.  

Sailing through BFCM and fulfilling massive order volumes with ease

One of the most valuable aspects of ShipBob WMS for our brand has been its ability to flex and scale with our order volumes – especially during peak season.  

This past peak, we were expecting a huge swell of orders, and brought on extra staff for fulfillment during BFCM. We were able to train them on ShipBob WMS really easily (it’s a very intuitive system), and in just a day or two, they were up to speed.  

We ended up doing 70K orders in just one month during peak season, and because we had ShipBob WMS in place, we were shipping orders out within days instead of what would have taken much longer previously. That’s kind of crazy to me, because we’re a small business; we have maybe 10 people on fulfillment, so the fact that ShipBob WMS enabled us to pick, pack, and ship that many orders so quickly is a testament to how well the system works.  

Looking forward to calls with ShipBob’s support team

Our support team at ShipBob has been just fantastic. I look forward to my calls with our account manager Martin every week. We’ve developed a great working relationship, and if any issues pop up, I immediately go to him and he helps me solve them.  

I also appreciate that ShipBob offers internal chat channels for merchants to use for smaller things. If I have a question, or a simpler ask, I can post it in that channel and get help really quickly. 

What’s next for Elwood Clothing 

We’ve seen tremendous growth over the past few years, in part because our logistics have been so smooth. Our product is amazing, and so is our marketing, so logistics were the last piece of the puzzle – and I always tell my business partners, “You do what you want to do. Don’t hold back, because of logistics or operations. I will find a way to kind of take care of it.” With ShipBob, I feel like I’ve been able to follow through on that promise, and we’ve been able to keep up with this rapid growth.  

Because we’ve scaled so quickly, I think Elwood is in a sweet spot where we have more breathing room to focus on other initiatives. We’re considering adopting ShipBob’s hybrid fulfilment solution, where we keep our in-house operations on the West Coast on ShipBob WMS but also outsource some of our fulfillment to ShipBob’s team at their fulfillment centers. Distributing inventory and fulfilling from other locations like the East Coast or Canada would reduce transit times and costs even more as we grow, so we’ll definitely be looking into that.  

But mainly, our goal is to maintain our current level of stellar service. We want to keep doing what we feel is right for our customers, keep price points fair, and keep creating and delivering quality style that everyone can enjoy. 

Elwood Clothing’s team at ShipBob

Sean Morris

Sean is the Account Executive who helped Elwood Clothing get started with ShipBob.

Lacey Elliot

Lacey is the Implementation Manager who onboarded Elwood Clothing. 

Martin Niemczewski

Martin is the Merchant Success Manager at ShipBob who supports Elwood Clothing. 

Get started with ShipBob

Interested in using ShipBob’s WMS in your own facility? Want to learn more about ShipBob’s hybrid fulfillment solution? Connect with a member of our team to get started.

The post How Elwood Clothing Saves $200K/Year and Manages Fulfillment for 3.5K+ SKUs Using ShipBob WMS [Case Study] appeared first on ShipBob.

What are warehouse functions?

Core functions of warehousing every brand should know

Security and risk mitigation strategies in warehousing functions

How technology powers each warehousing function

How ShipBob optimizes warehouse functions for ecommerce brands

Get started with ShipBob

Warehouse functions FAQs

Many dismiss warehousing simply as storage.

But they couldn’t be more wrong: a warehouse is a dynamic hub of activity that is the foundation of the entire ecommerce order fulfillment process.

From receiving and storing inventory to picking, packing, and shipping orders, there are critical functions that occur within the warehouse that keep your supply chain running smoothly.

And when optimized, these warehouse processes don’t just improve internal efficiency, they reduce costs, speed up deliveries, and build customer loyalty.

In this guide, we’ll unpack the essential functions every ecommerce warehouse must master, along with best practices, real-world examples, and technology tips to help.

What are warehouse functions?

Warehouse functions are the essential activities performed within a warehouse that ensure products move efficiently through the supply chain. These functions form the backbone of logistics operations, particularly for ecommerce businesses that rely on seamless product flow to meet customer expectations.

From the moment goods arrive at a warehouse to the time they’re shipped out to customers, various warehouse functions maintain inventory accuracy, enable order fulfillment speed, and boost overall operational efficiency. When these functions are well-managed and optimized, businesses can better control costs, improve customer satisfaction, and ultimately drive growth.

However, managing warehouse functions is no simple feat. Ecommerce businesses must navigate a complex web of processes, from receiving and storing inventory to picking, packing, and shipping orders. Each function requires logistics technology and tools, as well as careful planning, execution, and oversight to avoid costly errors and delays.

Warehousing functions vs. overarching warehousing operations

It’s important to note that while specific functions like receiving, storing, and picking are key components of warehouse management, they are distinct from the broader scope of warehousing operations. Total warehousing operations encompass a wide range of activities that ensure the inner workings of the warehouse are running smoothly and warehouse functions can occur seamlessly. Common warehousing operations include:

• Facility management and maintenance
• Workforce planning and labor allocation
• Quality control and inventory auditing
• Safety and compliance management

Understanding the distinction between individual warehouse functions and overall operations is crucial for businesses looking to optimize their supply chain. By recognizing the unique challenges and requirements of each function, companies can better allocate resources, implement targeted solutions, and measure performance at a granular level.

At the same time, understanding how warehousing operations impact warehouse functions is important to identify opportunities for process improvement. For example, adding additional warehouse associates during the holidays can have a positive impact on fulfillment speeds. The increased number of associates means more orders can be processed in the same amount of time, resulting in greater productivity during peak season.

Core functions of warehousing every brand should know

Warehousing is not a single, monolithic process – it’s a complex system of interconnected functions that must work together seamlessly to keep products flowing efficiently from suppliers to customers. 

In the fast-paced world of ecommerce, these functions have evolved to meet the unique demands of online selling, such as rapid order processing, high inventory turnover, and the need for scalability during peak periods. Let’s take a closer look at the six primary warehouse functions that every ecommerce brand should master.

1. Receiving

Receiving is the first step in the warehousing process, which sets the stage for all subsequent functions. When inbound shipments arrive at the warehouse, associates must carefully unload, inspect, and verify the contents against shipping documents, such as warehouse receiving orders (WROs), to ensure accuracy and prevent discrepancies.

Best practices for warehouse receiving include:

• Scheduling deliveries in advance to avoid congestion at warehouse docks and optimize labor allocation.
• Using barcode scanners or RFID technology to quickly and accurately record inbound inventory.
• Conducting thorough inspections to confirm product quantities are the same as outlined in the shipping documents and identify any damaged or defective products.
• Promptly updating inventory counts within the warehouse management system (WMS)  to reflect new stock levels.

At ShipBob, associates utilize our proprietary WMS and WROs documentation to streamline receiving and ensure pinpoint accuracy. By leveraging advanced technology and rigorous quality control measures, ShipBob helps ecommerce brands maintain precise inventory counts from the moment products arrive at the fulfillment center.

2. Storing

Once products have been received and inspected, they must be properly stowed within the warehouse. Effective storage strategies involve organizing inventory by a variety of factors such as SKU, product type, or demand frequency and using appropriate storage systems like pallet racking, shelving, or bin storage.

Ultimately, a well-designed storage system sets the stage for efficient picking and helps to minimize errors, damage, and stockouts. By leveraging best practices and technology solutions, ecommerce brands can optimize their storage processes to drive efficiency and protect their inventory investment.

3. Picking

Picking is the warehouse process of retrieving products from their storage locations to fulfill customer orders. As one of the most labor-intensive and time-consuming warehouse functions, picking is a prime target for optimization efforts.

Effective picking strategies include:

• Implementing batch, zone, or wave picking methods based on order volume and warehouse layout.
• Using pick lists and mobile devices to guide pickers through the most efficient routes.
• Leveraging technology like voice-directed picking or pick-to-light systems to increase speed and accuracy.
• Strategically stowing frequently picked items closer to pack stations to minimize the destination between pick and pack.

With advanced picking technologies and data-driven strategies, ShipBob helps merchants streamline order fulfillment to get orders out the door and into the hands of your customers faster.

4. Packing

Once orders have been picked, they are packed and prepared for shipment. Efficient packing workflows are crucial for ensuring orders are shipped quickly and securely.

Packing stations should be strategically set up with all necessary materials within easy reach, such as boxes, mailers, tape, labels, and dunnage. This minimizes the time packers spend searching for supplies and maximizes their productivity.

Choosing the right packaging materials is also essential. When packing orders there are a number of factors to consider, including product fragility, size, and weight, as well as sustainability and branding requirements. Properly sized packaging not only protects products during transit but also ensures accurate dimensional weight (therefore helping brands avoid unnecessary charges from carriers).

In addition to practical considerations, packaging also plays a key role in the customer experience. The unboxing process is a prime opportunity to reinforce your brand and create a positive impression. Custom packaging, branded inserts, and personalized gift notes can go a long way in delighting customers and encouraging repeat purchases. These options showcase your brand, provide marketing information, and create a memorable unboxing experience.

To further enhance the customer experience, many ecommerce businesses opt for value-added services like kitting. Kitting involves pre-assembling multiple SKUs into a single unit, which can be an effective strategy for product bundles, subscription boxes, or promotional offerings. 

ShipBob’s Customization Suite offers a range of value-added services to help ecommerce brands elevate branded unboxing experience. In addition to customization options, ShipBob can handle kitting projects of any size or complexity, from simple two-item bundles to multi-product subscription boxes with variable contents. By outsourcing fulfillment to ShipBob, merchants can achieve a polished and professional packing process that will delight customers.

5. Shipping

Shipping is the pivotal function where packed orders leave the warehouse and begin their journey to customers. Efficient shipping requires precise coordination between warehouse operations and transportation carriers to ensure timely deliveries and satisfied customers.

Effective shipping practices include:

• Selecting appropriate carriers (either major carriers like FedEx, UPS, and DHL or smaller, regional carriers) based on factors like shipping cost, speed, geographic reach, and reliability.
• Generating accurate shipping labels and documentation to minimize errors, streamline carrier processing, and ensure compliance with international shipping regulations, when necessary.
• Implementing rate-shopping technology to automatically select the most cost-effective and timely shipping options for each order.
• Providing customers with tracking updates, providing them with visibility into their order’s delivery status, and enhancing their overall experience.

ShipBob leverages its extensive network of strategically located fulfillment centers to provide ecommerce brands with optimized shipping solutions. By positioning inventory closer to customers, ShipBob ensures shorter transit times, lower shipping costs, and increased delivery reliability, ultimately helping merchants build customer loyalty through consistently excellent shipping experiences.

In the US, brands can utilize ShipBob’s Inventory Placement Program (IPP) to automatically distribute, balance, and replenish inventory across the country. Additionally, ShipBob has a network of over 60 fulfillment centers around the globe so brands can place inventory in multiple markets to reach international customers more seamlessly and minimize duties and taxes. 

6. Returns management

Returns management—or reverse logistics—is an essential warehousing function focused on efficiently handling returned products. With ecommerce return rates averaging between 15% to 30%, optimizing returns management is crucial for maintaining customer trust, minimizing costs, and recovering value from returned inventory.

Key strategies for effective returns management include:

• Streamlining the returns intake process by clearly communicating return policies on your website and sales channels, providing prepaid return labels, and implementing easy-to-use returns portals.
• Conducting thorough inspections upon return to assess product condition, determine eligibility for resale, refurbishment, recycling, or disposal, and promptly updating inventory records accordingly.
• Analyzing return data to identify product quality issues, inaccurate product listings, or packaging shortcomings, enabling proactive corrective actions.
• Speeding up customer refunds or exchanges to maintain trust, enhance customer satisfaction, and encourage future purchases.
• Emphasizing exchanges to recoup a portion of the original sale while satisfying the customer. 

ShipBob simplifies returns management for ecommerce brands by offering streamlined returns processing through their fulfillment centers. With dedicated returns handling protocols, ShipBob ensures rapid inspection, accurate restocking (including return-to-sender (RTS) restock options), and real-time inventory updates, enabling merchants to efficiently manage returned merchandise, reduce losses, and deliver exceptional customer service at every touchpoint.

Security and risk mitigation strategies in warehousing functions

Ensuring the security of your inventory and mitigating potential risks is critical for protecting your bottom line and maintaining business continuity. The level of security required will depend on the type and value of the products being stored, but every warehouse should have measures in place to safeguard against theft, damage, and non-compliance.

Safeguarding goods and minimizing damage

Physical security is the first line of defense in protecting your inventory. This includes surveillance systems, access control measures, and trained security personnel to monitor the premises. Implementing strict inventory control procedures, such as regular cycle counts and real-time tracking, can also help prevent shrinkage and identify potential issues early on.

Proper handling techniques of fragile items or hazardous materials are essential to minimize damage and to ensure associate safety .. This may involve specialized equipment, staff training, and designated storage areas within the warehouse.

At ShipBob, stringent security protocols are implemented across all fulfillment centers to protect merchant inventory. From 24/7 surveillance and access control to regular inventory audits and ICQA, ShipBob takes a comprehensive approach to safeguarding your products.

Ensuring product safety and regulatory compliance

Brands that sell products in the food, supplement, pharmaceutical, or electronics categories should prioritize storing their inventory in warehouses with climate controls. Climate control is a critical consideration for brands storing sensitive products, as maintaining proper temperature and humidity levels preserves product quality and ensures compliance with industry regulations.

Compliance with industry-specific regulations, such as FDA or USDA guidelines, requires meticulous record-keeping and traceability measures. This includes lot tracking capabilities to facilitate swift product recalls if necessary.

ShipBob’s fulfillment centers are equipped to handle a wide range of regulated products, with specialized capabilities for temperature-sensitive goods and hazardous materials. By partnering with a third-party logistics (3PL) provider like ShipBob, ecommerce brands can ensure their products are stored and handled in full compliance with all relevant regulations.

ShipBob has solutions for brands that require climate controls and warehouse compliances such as GMP and GFSI, lot tracking, FIFO or FEFO inventory management, and more.

How technology powers each warehousing function

In today’s fast-paced ecommerce landscape, technology has become the key enabler of efficient, accurate, and scalable warehouse operations. From inventory management software to automation tools and AI-powered analytics, digital solutions are transforming every aspect of the warehousing process.

By leveraging data-driven insights and real-time visibility, businesses can optimize their warehouse functions for maximum performance and profitability. The ROI of technology investments will vary depending on the size and complexity of the operation, but the benefits are clear: streamlined processes, real-time data, reduced errors, and the ability to scale quickly to meet demand.

Warehouse management systems (WMS)

A warehouse management system (WMS) is the backbone of modern warehousing operations. This software platform provides end-to-end visibility and control over warehouse functions, including inventory, orders, and labor, enabling businesses to optimize every aspect of the fulfillment process.

Core WMS functionality includes real-time inventory tracking, order management, and staff allocation. Advanced systems also offer seamless integration with popular ecommerce platforms like Shopify and Amazon, as well as robust reporting and analytics capabilities to drive continuous improvement.

ShipBob’s proprietary WMS is designed specifically for the needs of ecommerce businesses, providing merchants with real-time visibility into warehouse activities and inventory levels. With ShipBob, brands can easily monitor performance, identify trends, and make data-driven decisions to optimize their operations.

Automation tools and AI

Physical automation solutions, such as conveyor systems, sortation equipment, and robotics, can significantly boost warehouse productivity and accuracy. These tools streamline repetitive tasks, reduce manual handling, and minimize the risk of errors, particularly during peak periods when order volumes are high.

Artificial intelligence (AI) and machine learning (ML)algorithms are also transforming warehouse operations by enabling more accurate demand forecasting, intelligent route optimization, and predictive maintenance. By leveraging AI insights, businesses can proactively address potential issues and optimize their resources for maximum efficiency.

The key to successful automation is striking the right balance between technology investment and labor. This looks different for businesses at different growth stages. For some, this may involve a phased approach, gradually incorporating automation tools in their own warehouse as order volumes and complexity increase. For others, this may mean working with a fulfillment provider like ShipBob that has access to best-in-class technology and automations. 

Cloud-based and mobile visibility

Cloud-based warehouse management systems offer significant advantages over traditional on-premise solutions, most notably in terms of scalability, accessibility, and real-time data synchronization. With a cloud-based WMS, businesses can easily manage their inventory and operations from anywhere, at any time, since information is not saved locally on specific machines or hardware.

Mobile devices are also transforming the way warehouse staff work, enabling them to access and update information on the go. From receiving and putaway to picking and packing, mobile solutions streamline every step of the process, reducing manual data entry, and increasing overall efficiency.

For ecommerce brands, cloud-based and mobile visibility tools are essential for keeping customers informed about order status and inventory availability. ShipBob’s intuitive dashboard, for example, provides merchants with instant access to real-time inventory levels, order tracking, and performance metrics, empowering them to make informed business decisions.

How ShipBob optimizes warehouse functions for ecommerce brands

ShipBob is a best-in-class global fulfillment platform that specializes in omnichannel ecommerce order fulfillment. ShipBob offes a full suite of solutions to help brands optimize their fulfillment operations and exceed customer expectations. 

With a network of fulfillment centers across the US, Canada, Europe, and Australia, ShipBob enables merchants to streamline their logistics, reduce costs, ship orders quickly, and scale efficiently.

In addition to its core fulfillment services, ShipBob offers a range of value-added capabilities to help ecommerce brands elevate their customer experience and grow their business. 

ShipBob’s industry-leading WMS

At the core of ShipBob’s offering is a proprietary warehouse management system that integrates seamlessly with popular ecommerce platforms like Shopify, Amazon, Target, and Walmart. 

ShipBob’s WMS is designed specifically with ecommerce merchants in mind, making it a top choice for brands looking to optimize their warehouse operations.

This powerful system offers the same advanced functionality used in ShipBob’s own fulfillment centers, enabling businesses to manage their inventory, orders, and shipping with ease.

With ShipBob’s WMS, merchants can access real-time inventory tracking, set up automated reorder points, and optimize product allocation across multiple storage locations. The system also streamlines key warehouse functions like receiving, putaway, and picking, with built-in tools for reducing errors and improving efficiency.

Real-time inventory updates and demand fluctuations

One of the biggest challenges in ecommerce is managing inventory levels to avoid stockouts and overstock situations. ShipBob’s technology provides real-time visibility into inventory levels, enabling merchants to track their stock across multiple fulfillment centers and sales channels.

This level of transparency is critical for managing demand fluctuations, particularly during peak seasons or promotional periods. With ShipBob, brands can easily monitor inventory levels, set up automatic reorder points, and even use historical data to forecast future demand.

By leveraging ShipBob’s data and analytics tools, merchants can make informed decisions about purchasing, product allocation, and supplier relationships. This not only helps to prevent stockouts and overstocking but also frees up working capital and improves overall supply chain efficiency.

Faster delivery and better customer experiences

In today’s fast-paced ecommerce landscape, customers expect nothing less than fast, reliable shipping. ShipBob’s distributed fulfillment network is designed to help merchants meet these expectations, with strategically located centers that enable 2-day shipping in the contiguous US.

By storing inventory closer to end customers, ShipBob helps brands reduce shipping costs, speed up delivery times, and improve the overall customer experience. This not only leads to higher satisfaction and repeat purchase rates, but also helps to reduce cart abandonment and boost conversions.

ShipBob’s technology also provides customers with real-time order tracking and proactive communication at every stage of the fulfillment process. This level of transparency helps to build trust and loyalty, turning one-time buyers into lifelong brand advocates.

Get started with ShipBob

Interested in leveraging ShipBob’s fulfillment solutions? Fill out the form to get a customized quote.

Warehouse functions FAQs

Here are some frequently asked questions about warehouse functions and how they impact ecommerce businesses and fulfillment worldwide.

How do conveyor systems and robotics improve warehouse efficiency?

Conveyor systems and robotics can significantly boost warehouse efficiency by increasing throughput, reducing errors, and minimizing manual labor. Conveyors automate the movement of goods between different areas of the warehouse, such as from receiving to storage or from picking to packing. This reduces the time and effort required for workers to transport items manually.

Robotics, such as autonomous mobile robots (AMRs) and robotic picking arms, can further enhance efficiency by assisting with tasks like retrieving items from storage, transporting goods, and even picking and packing orders. These automation technologies not only improve speed and accuracy but also reduce physical strain on workers, leading to a safer and more ergonomic work environment.

What is the difference between a fulfillment center and a bonded warehouse?

A fulfillment center is a type of warehouse that focuses on processing and shipping orders directly to customers (DTC). These facilities are designed to handle a high volume of individual orders and are optimized for rapid order processing, picking, packing, and shipping.

In contrast, a bonded warehouse is a secure storage facility that holds imported goods before duties and taxes are paid. This allows importers to defer payment of duties until the goods are sold or removed from the bonded warehouse for consumption. Bonded warehouses are primarily used for B2B transactions and are subject to strict customs regulations.

How do I choose the right WMS for my small vs. growing ecommerce business?

When selecting a warehouse management system (WMS) for your ecommerce business, consider your current needs and future growth plans. For small businesses, essential features include real-time inventory tracking, order management, and basic reporting capabilities. The WMS should integrate seamlessly with your ecommerce platform and be user-friendly for your staff.

As your business grows, you may require additional features such as demand forecasting, warehouse labor management, advanced analytics, and more robust integration capabilities. No matter where your business is in your in-house fulfillment journey, ShipBob’s  WMS can accommodate your increasing order volume and inventory levels, streamline order fulfillment in your own facility, and give you real-time data at your fingertips.

What safety and environmental controls are essential in modern warehousing?

Modern warehouses must prioritize safety and environmental controls to protect workers, products, and the environment. 

Essential safety measures include:

• Ergonomic practices, such as teaching proper lifting techniques and thoughtful workstation design
• Regular safety training and the use of personal protective equipment (PPE)
• Environmental controls, such as temperature and humidity regulation, for storing sensitive products like food, pharmaceuticals, and electronics
• Adequate ventilation and air filtration systems to maintain air quality and prevent the buildup of dust and pollutants
• Compliance with regulatory standards such as OSHA and EPA

How can ShipBob help optimize my warehouse functions?

ShipBob is a leading ecommerce fulfillment provider that specializes in optimizing warehouse and fulfillment functions for online businesses. With a global network of strategically located fulfillment centers and a proprietary technology platform, ShipBob streamlines the entire fulfillment process, from receiving and storage to picking, packing, and shipping.

By partnering with ShipBob, ecommerce businesses gain access to a powerful WMS that provides real-time visibility into inventory levels, order status, and performance metrics. And, ShipBob’s distributed fulfillment network enables businesses to store inventory closer to their customers, reducing shipping costs and delivery times.

The post What Are the Key Functions of a Warehouse? Tips & Examples appeared first on ShipBob.

Customer Profile

Named after its founder’s rescue dog, Pick Peanut is a UK-based pet supplement brand dedicated to bettering our furry friends’ health, one microbiome at a time. Its conscientiously-sourced probiotic products feature premium, natural ingredients designed to support your dog’s digestive health and eliminate itchy ears and skin for good. Pick Peanut also donates a portion of each purchase to the Soi Dog Foundation to support the rescue, medical treatment, and adoption of street pets in Thailand. 

Key metrics

• £1.5M in revenue since 2023   
• £1.50 per order saved on shipments from the UK to the EU 
• 50% cost-savings on fulfillment within the first month alone of ShipBob 
• 3x less expensive fulfillment since switching to ShipBob 

About Pick Peanut

When Ilya Andre’s beloved rescue dog Peanut started having health problems, he did what any good owner would do and started looking for a cure.  

Ilya soon discovered the world of pet supplements and found that probiotics did the trick for Peanut. He quicky realized that, while there seemed to be a lot of false claims and poorly-created products out there, there was also a growing demand for good, thoughtfully-sourced pet supplements; and, entrepreneur that he was, he saw the opportunity.  

Since it first launched as a simple probiotic supplement line, Pick Peanut has shipped over 1.5 million orders and expanded its product line to include anti-itch products and shampoos – all in just two years.  

We sat down with Ilya Andre, Founder and Director of Pick Peanut, to discuss why the brand switched to ShipBob, and how it’s saved them money while improving their customer experience.  

Ditching our old 3PL after surprise costs, broken promises, and shipping issues 

As told to ShipBob by Ilya Andre, Founder and Director of Pick Peanut.  

The rates may have been better for the 3PL, but the new carrier’s service was awful for our business. It caused tons of issues for our customers, and the actual ticket management of all those issues became a huge slog for our customer service team, taking up so much of their time. Worse yet, hardly any of those issues were getting resolved – the 3PL would chalk it up to the carrier, so we’d have to file a claim with the carrier (which would never go anywhere, in my experience). Maybe one out of ten tickets would actually get addressed.  

We ended up with a huge backlog of shipping problems to fix, and it started really impacting our customers. They would leave reviews praising the product, but expressing dissatisfaction with the delivery experience. That’s when I knew I had to find another fulfillment provider – our old 3PL was hurting our business, and we needed a partner that would help it thrive.   

Onboarding to ShipBob seamlessly 

Onboarding with ShipBob was incredibly smooth, and the ShipBob dashboard was super easy to adopt, too. I like that it’s simple – simple enough for pretty much anybody to be able to hop in and figure out. Because it’s so intuitive to navigate, we’re able to train people to use it very quickly, and the analytics and data it displays are quite comprehensive. 

“As soon as ShipBob got ahold of our inventory (after our old 3PL held our inventory hostage for a huge cancellation fee), all our stock was moved and orders were getting fulfilled in literally two days. It was amazing how everything was processed so quickly! Any kinks were eliminated almost instantly, and no problems persisted. Switching to ShipBob has been so much better for our business.” 

Ilya Andre, Founder and Director of Pick Peanut 

Saving 50% on fulfillment in just one month with ShipBob’s transparent pricing and partnership network 

ShipBob’s pricing has been so much better than our previous partner’s; after switching to ShipBob, we halved our fulfilment costs in just one month. On top of that, everything else has improved – customer satisfaction with shipping has increased significantly, and there are no issues with delivery. It’s not even a consideration for us anymore. ShipBob’s order accuracy and their ability to negotiate with carriers on our behalf has saved us so much time.  

“When we ran the numbers, on paper, our old 3PL and ShipBob came out about even in terms of pricing. But our previous 3PL sprang all these extra little costs and fees on us, and they ended up being far more expensive. ShipBob, on the other hand, gave us transparent pricing, and our invoices have been very true to their initial quotes. Cost-wise, we saved 50% in our first month alone with ShipBob.” 

Ilya Andre, Founder and Director of Pick Peanut  

We’re also saving a lot of money on international shipments thanks to ShipBob’s partnership network within the broader ecosystem.  

We ship to a lot of customers across the EU, which means our business needs an Import One Stop Shop (IOSS) number in order to streamline our VAT reporting and payment. Our old 3PL initially said that we could use their IOSS number for the purpose of efficiency, but then they surprised us by charging an extra £1.50 per order to do it. That’s about 25% of the cost of some of our fulfilment, and across hundreds of shipments, it adds up quick!  

Our experience with ShipBob was completely different. ShipBob immediately put us in touch with their partner Avask, which serves as our VAT compliance expert. We were able to set up an IOSS within two weeks, and we’ve been shipping to the EU cost-effectively ever since.  

Achieving tireless support that solves issues fast 

All the support we’ve received from ShipBob has been so fast, so efficient, and so personal. There’s a level of care that we don’t see with suppliers and other service partners we work with that we get from ShipBob, with detailed effort always being put into fixing any problems that come up.  

For example, we had a brief issue with EU customers having to pay customs duties even though we’re on IOSS, and we couldn’t figure out what was causing it because everything was going through fine on our end. Our account manager jumped right on it and worked tirelessly to figure it out, and was able to solve the problem. ShipBob’s support team is not only attentive, but also extremely persistent, and I don’t think we’ve had a single problem that’s not been addressed almost immediately. 

What’s next for Pick Peanut 

With ShipBob handling our fulfillment seamlessly, we have more time to focus on other priorities that will help us scale our business, like product development. We’ve got a few new products planned, and we’re excited to launch those and bundle them with our other products for an even better value. Eventually, we want to create more products that help with more niche problems for pets, and expand our business that way. 

We’re scaling as fast as we can in the UK, but another area of focus is scaling the same offers across the world. Right now, we’re testing different international markets to see which are best for us and putting together a plan to grow globally, as well as working on getting stock into ShipBob’s fulfillment center in the EU. There’s a huge market in Europe and we’ve already found that quite a few countries are profitable over time, so we’d love to continue to lean into those opportunities – and for ShipBob to help us do it! 

Our goal is to scale to £1M a month in revenue by the end of the year. It’s a big goal – especially considering we donate a portion of each order’s revenue to animal charities and shelters – but with the right partners and the right priorities, anything’s possible for us. 

Pick Peanut’s team at ShipBob

Matt Keen

Matt is the Account Executive who helped Pick Peanut get started with ShipBob.

Sergio Estevez

Sergio is the Implementation Manager who onboarded Pick Peanut to ShipBob. 

Kathryn Mileham

Kathryn is the Merchant Success Manager at ShipBob who supports Pick Peanut. 

Get started with ShipBob

Want to improve your ecommerce fulfillment strategy and scale your business? Discover if ShipBob is the right fit for your brand and request a fulfillment quote below.

The post How UK-Based Brand Pick Peanut Achieves 3X Cost Savings on Fulfillment After Switching to ShipBob [Case Study] appeared first on ShipBob.

What are shipping documents?

10 essential international shipping documents

3 most common domestic shipping documents

2 crucial shipping documents for heavy or hazardous materials

How ShipBob helps businesses with shipping documents

Shipping documents FAQs

Shipping is one of the most important yet complicated aspects of running an online business. Not only do you have to consider the costs and logistics of sending out orders to your customers, but you also have to make sure that those orders are accompanied by the right paperwork. Otherwise, you could end up with serious delays or even the dreaded “Package Stuck in Customs” notification for international shipments.

The best way to avoid major shipping issues is to make sure that your packages go out with all the necessary documents. So what documents do you need to include? That’s exactly what you’ll find out in this guide.

Read on to learn all about the most common shipping documents for domestic, international, and hazardous shipping.

What are shipping documents?

Shipping documents, as the name suggests, are the documents necessary to transport an item from one location to another. They’re made up of applicable records, forms, and certificates that provide information about the item being shipped. This may include details such as the item description and specification, quantity, price, ship date, delivery address, and shipping method.

The exact documents required may vary depending on factors such as the shipping method, delivery destination, and type of goods. However, most packages will require waybills, commercial invoices, packing lists, and certificates of origin.

As these documents provide information about the goods being shipped, they help ensure that packages are delivered on time and to the right addresses. They help courier services determine how to route the package and deliver them in the most efficient manner. 

Moreover, these documents are also necessary in international shipments to ensure that the package is in compliance with the import regulations of the countries through which it is routed. Ensuring all the necessary documents are included with the correct information will streamline the customs clearance process and allow for speedy international deliveries.

10 essential international shipping documents

With international shipping, laws and regulations in different countries may vary. As such, the documents needed for import or export may also vary. In most cases, you’d need the following documents for international shipping.

1. Proforma invoice

A proforma invoice is a type of estimated invoice or a preliminary bill that is sent to international prospects. Basically, it’s like a quote that you send before the actual purchase. It enables them to arrange the necessary finances and documentation such as import licenses. 

The following details must be included in a proforma invoice:

• Information on the buyer and seller
• A detailed description of the items
• Item value
• Harmonized System (HS) codes for the items
• Payment & invoice payment terms
• Delivery details
• Currency used
• Date and expiration date

2. Commercial invoice

The commercial invoice, often generated using an invoice maker, is the proof of sale that must accompany all international shipments. It can be similar to your proforma invoice but may contain additional details such as the order number and PO number. 

Commercial invoices are very similar to standard invoices but must include other details that will help with customs clearance. This includes details such as:

• Detailed information on the buyer and seller
• Information on the freight forwarder
• Banking and payment information
• Shipping line
• Item description
• Quantity
• Country of origin
• HS code
• Item value
• Total weight
• Shipment terms

3. Export packing list

An export packing list contains an itemized list of all the goods included in a shipment along with important details about each item. This document may be used for issuing other important documents such as a bill of lading and a letter of credit. In international shipments, the packing list is essential for the shipment to clear customs. It can also be used if any dispute arises between the shipper and the carrier.

The export packing list will include key information such as:

• Order date, shipping address, and contact info
• Itemized list of shipped items
• Itemized list of items that were out-of-stock
• Quantity of each item
• SKU or UPC numbers
• PO number or slip number
• Dimensions and weight
• Packaging type
• Safety measure

4. Certificates of origin

Most international shipments require a certificate of origin to declare where the items originated from. They must be provided in accordance with the rules and regulations of the importing country and certified by the export country’s consulate office or the chamber of commerce.

Certificates of origin must include the following details:

• Name and address of the shipper
• Name and address of the buyer
• Exporting carrier
• Country of manufacture
• Number of packages
• Date of export
• Item description
• Quantity/unit of measure
• Weight
• Signature from the authorized personnel

5. Certificate of free sale

Also called a certificate of export, this document serves as evidence that the item being shipped is sold or distributed legally in the open market and that there are no restrictions on them in the country of origin. A certificate of free sale indicates that the item has been approved by relevant regulatory authorities and is eligible for export.

This document is typically needed for certain types of products such as cosmetics, food items, medical devices, and biologics. 

6. Shipper’s letter of instruction

This document contains specific instructions to successfully transport international shipments. Usually provided to freight forwarders, this document will include details like:

• Name and contact information of the shipper/exporter
• Name and contact information of the freight forwarder
• Details about the items being shipped
• Item weight and dimensions
• Type of packaging
• Special handling requirements
• Exporting restrictions (if any)
• Type of freight
• Insurance information
• Documents included in the shipment
• Special instructions to carrier or freight forwarder

7. Inland bill of lading

The inland bill of lading is a contract of carriage that’s consigned to the shipping carrier rather than the buyer for the transportation of goods via road, railway, or inland water. It states where the goods are being transported and serves as evidence that the goods have been picked up. The inland bill of lading may include details such as:

• Item description
• Item value
• Origin country
• Destination
• Transportation terms

8. Ocean bill of lading

As the name suggests, this document is required for shipments made across international waters. It serves as a contract between the exporter or seller and the shipping carrier, ensuring that the buyer receives the product, and the seller gets paid. The ocean bill of lading may include details such as:

• Item description
• Item quantity
• Shipment commercial value
• Destination
• Routing instructions
• Type of packaging

9. Air waybill

This is a contract of carriage for goods shipped by plane, indicating an agreement between the seller and the carrier. It’s non-negotiable and serves as a receipt of goods for the airline carrier once the goods arrive at the destination airport.

An air waybill typically includes the following information:

• Name, address, and account number of the shipper
• Name, address, and account number of the consignee
• Air waybill number
• Airport of departure
• Airport of destination
• Flight date
• Declared value
• Item details
• Charges due to agent/carrier

10. Letter of credit

This is a popular means of payment for international transactions. It’s formal and binding, making it irrevocable by default. It’s a promise of payment to the seller by the bank on behalf of the importer or seller.   

3 most common domestic shipping documents

Domestic shipping is a little less complicated than international shipping. You’ll typically require the following three shipping documents.

1. Bill of lading

Bill of lading ,or BOL, is a transportation contract between the transportation company or carrier and the business that’s sending out the package. It helps to confirm the receipt of goods that need to be shipped and it needs to be signed by an authorized representative from the carrier’s end. 

Typically, a BOL must include the following details:

• Where it’s shipped from
• Destination
• BOL number
• Details of the carrier/transportation company
• Transportation mode
• Description of goods being shipped
• Shipment terms

2. Packing list

A packing list or a packing slip contains an itemized list of all the goods included in a shipment. This helps to ensure that everything’s included in the shipment, confirm that all the items were received, and identify any damaged items.

It includes details such as:

• Order date, shipping address, and contact info
• Itemized list of shipped items
• Itemized list of items that were out-of-stock
• Quantity of each item
• SKU or UPC numbers
• PO number or slip number

3. Commercial invoice

A commercial invoice serves as a proof of purchase and includes all the details of the sales transaction between the seller and the customer. It will include details such as:

• Invoice number
• Customer name, address, and contact info
• Seller name, address, and contact info
• Item description and quantity
• Item value
• Item weight
• Shipment terms

2 crucial shipping documents for heavy or hazardous materials

Shipping heavy items or hazardous materials is a whole other game. As such, you’d need to include additional shipping documents in addition to the above.

1. Dangerous goods form

This is a declaration indicating that the seller has packed, labeled, and declared the consignment in accordance with the applicable regulations. It will include details like:

• Name and address of the shipper
• Air waybill number
• Shipper’s reference number
• Page of pages
• Consignee details
• Departure airport
• Destination airport
• Shipment type
• Nature and quantity of dangerous goods including proper shipping name, class or division, quantity and type of packaging, authorization
• Additional handling information

2. Emergency response information

This document specifies what action must be taken in case of an emergency pertaining to the hazardous materials being shipped. It should include the following details:

• Basic description and technical name of the material
• Immediate health hazards
• Risks of fire or explosion
• Immediate precautions in the event of an incident or accident
• Immediate procedure to handle fires
• Procedure for handling spills and leaks
• Recommendations for preliminary first aid measures

How ShipBob helps businesses with shipping documents

When you choose ShipBob’s fulfillment service, the team handles the entire fulfillment process for you. You can send your inventory to ShipBob, where it’ll be stored until an order comes in. The fulfillment team will pick and pack the orders and get them ready for shipment, which means ensuring that all the necessary shipping documents are included.

For international orders, you can take advantage of ShipBob’s global fulfillment network and store inventory countries close to your end customer. This minimizes the need for additional documentation when catering to orders made by international customers.

ShipBob can even help you manage shipping dangerous goods domestically and internationally. You can use the platform to mark the item as “Dangerous Goods” so ShipBob can take appropriate measures when managing the order.

“Shipping cross-border is never easy, especially when you’re shipping a product that qualifies as a dangerous good since our products contain alcohol.

By storing inventory in ShipBob’s facilities within the countries or near the geographies we’re shipping to, we can bypass a lot of the complexities of international shipping. It makes our lives significantly easier.”   

Sergio Tache, CEO of Dossier

If you’re ready to get started with ShipBob, request a quote to connect with our team.

Shipping documents FAQs

Here are answers to the most common questions about shipping documents.

What document is required for every shipment?

Every shipment requires a commercial invoice, a packing list, and a bill of lading (BOL).

What documents are needed to ship internationally?

International shipments typically require a commercial invoice, a letter of free sale, a bill of lading, a certificate of origin, and an export packing list.

What is the difference between a bill of lading and a waybill?

A bill of lading (BOL) and a waybill contain almost all the same information about a shipment. The biggest difference is that a bill of lading is contractually binding while a waybill is not. 

The post Shipping Documents: Essential Import & Export Docs (2025) appeared first on ShipBob.

Customer Profile

Aroma360 is the leading scent marketing and aromachology brand that creates luxury fragrances for homes and businesses. Crafted with uncompromisingly high-quality oils that are healthy and safe for all (including pets and children), Aroma360’s 90+ signature scents create aromatic sanctuaries that promote wellness and evoke each space’s desired ambiance and image. Their clients span over 22 countries, and include notable luxury brands such as Lexus®, Ritz Carlton®, Four Seasons®, Ferrari®, and more.   

Key metrics

• $6/order on average saved on international shipments with ShipBob 
• 140,000 monthly orders shipped 
• 3 ShipBob warehouses used in 2 countries 
• 20,000 orders received in 1 day after a QVC TV feature, fulfilled by ShipBob    
• 88% reduction in international shipping speed (from 25 days to 3 days)  
• 22 brick-and-mortar retail stores and counting 

About Aroma360

When Benzion Aboud’s girlfriend asked him if she could use a corner of his 20,000 sq-ft. warehouse space to start a business, he had no idea that it would become one of the world’s leading luxury fragrance brands.  

It started with just 3 salespeople cold-calling doctors’ offices and spas, pitching the owners on the business’s unique fragrances and scenting machines. Four years later, when Benzion’s original company was acquired, he decided to go all in on the fledgling scent brand—moving to Miami, establishing a retail store, and opening a small ecommerce shop.  

It grew steadily from there—but when the COVID-19 pandemic drove everyone inside and to invest in their living spaces, Aroma360’s growth took off like a shot. They built a second website (Hotel Collection), expanded even farther into B2B channels, and partnered with some of the most widely known and respected luxury brands to create signature scents that their customers can’t get enough of. 

Since then, Aroma360 has scaled into a multi-million-dollar brand and shipped millions of orders to businesses and consumers alike. We sat down with Rachel Tannenholz, President, and Melissa Mosheim, Director of Logistics at Aroma360, to discuss how outsourcing fulfillment to ShipBob has enabled them to save money, cut shipping times, and achieve customization at scale seamlessly.  

Tapping into ShipBob’s WMS and fulfillment centers to scale 

As told to ShipBob by Rachel Tannenholz, President, and Melissa Mosheim, Director of Logistics at Aroma360. 

Prior to partnering with ShipBob, our business was much smaller than it is now, so it made sense to fulfill and ship all our orders out of our warehouse in Miami. But as our growth kicked into hyper speed, we got to a point where we just didn’t have any more storage or fulfillment capacity.

We had to make a decision: was opening another facility in Miami, staffing it, and doing everything ourselves worth it? It really wasn’t, so we started looking for an expert partner that could work in tandem with our existing warehouse and help us expand by taking the bulk of logistics off our plate.  

“Our business’s core strength is marketing; we’re not experts in logistics, so we knew that would never be our internal competitive advantage. So why not outsource logistics to the best people in the industry, who know what they’re doing, and focus our energy on what we’re great at? By partnering with ShipBob, we’re doing just that – and it gives us the time and resources we need to grow our brand and revenue.”

Rachel Tannenholz, President of Aroma360 

ShipBob’s hybrid fulfillment solution – which allows us to simultaneously outsource fulfillment to three of ShipBob’s fulfillment centers and use ShipBob’s warehouse management system (WMS) to power operations in our Miami warehouse – turned out to be just what we needed. It gave us the inventory storage and operational capacity we needed to keep up with our growing order volume, and since all of ShipBob’s warehouses run on the same WMS we’re using in our facility, we still achieved the unified fulfillment experience we required.  

Integrating ShipBob’s WMS into our Miami warehouse has really helped our in-house business on so many levels. It did wonders for our inventory accuracy – having a system that would decrement inventory in real-time based on shipments gave us a lot more insight into our inventory movement and made our inventory counts in different fulfillment stages much more reliable.  

Before ShipBob, we used to do a lot of that tracking and updating manually and it was a lot more work for our team as well, so automating everything through ShipBob’s WMS has been very helpful. Also, with the amount of sales volume that we drive, we have to nail our inventory tracking across the entire supply chain. 

Saving $6/order and cutting transit times by 88% from distributing inventory across ShipBob’s network 

Shipping used to be very expensive for us, but it’s obviously a huge part of the customer experience and not just converting the first sale, but repeat purchases too. No shopper wants to pay a ton of money in shipping, and since our main focus is always on putting the customer first and making sure they have a fantastic buying experience, we needed a fulfillment partner that aligned with our brand and could deliver cost-savings while keeping shipping fast. 

With ShipBob’s Inventory Placement Program (IPP), we’ve saved so much money by distributing inventory strategically across ShipBob’s network instead of only shipping from our US warehouse. We’ll talk about IPP again, but right now we’re currently leveraging three of ShipBob’s fulfillment centers, including two in different regions of the US from our warehouse and one in the UK.

Shipping to UK customers from a facility within the UK saves us $6 per shipment on average, which is huge! England is a big market for us, so those per-order cost-savings really add up, and our international customers are getting a much faster and less expensive delivery thanks to ShipBob’s global presence.  

“Distributing inventory across the world with ShipBob also drastically cut our transit times. When we were only shipping from our Miami, FL warehouse, it would take us 25 days to deliver an order to a customer in the EU, while using ShipBob’s UK fulfillment center, it takes only 3 days. That’s an 88% reduction in shipping time for those international customers!”

Rachel Tannenholz, President of Aroma360 

Back to ShipBob’s Inventory Placement Program, it’s allowed us to much more easily and intelligently allocate and distribute our inventory across our ShipBob fulfillment centers without having to spend more time or hire more people. Between these additional facilities and our Miami warehouse, we can ship to basically any customer in the US and get their order to them quickly and inexpensively. We continue to see our average transit time decrease, and it will only get lower over time.    

With ShipBob, everything between our platform and our retailers’ is connected, and if our partners see a hiccup on their end, it’s always really easy to problem-solve and troubleshoot. It’s a very efficient system overall.  

“We recently did a TV promotional drop for QVC in December, and we received 20,000 orders in a single day. When we do that kind of volume in such a short amount of time, I don’t even know how we would possibly staff up to process those orders all by ourselves. It would take months and months of planning, but with ShipBob, it got done so quickly — it only took 2 days to get all the orders shipped — and that was during peak season, too. It was seamless.

ShipBob worked with us incredibly well and handled the end-to-end process to make sure everything worked out. Just having those capabilities and being able to handle demand spikes like that—especially for retail dropshipping orders—has been phenomenal.”

Rachel Tannenholz, President of Aroma360 

Customizing orders with a team that knows our products & business 

“Our business is complicated – we have a wide variety of products, and we do a lot of customization – but ShipBob’s team has done an amazing job at learning our business, and the technology that drives ShipBob’s packing process ensures that every order gets fulfilled to our particular specifications.”

Melissa Mosheim, Director of Aroma360 

When we go onsite to one of ShipBob’s fulfillment centers, the packers know our products so well, because ShipBob’s step-by-step packing flow shows them just what to do. That way, they know exactly which dividers go with which candles, which size box each combination of products goes in, and how to package it correctly. It even includes GIFs that show packers precisely how to do it! It’s a spectacular level of service that only comes from combining automative technology with people that really understand our business.

Having ShipBob fulfill subscription orders for consistent, seamless service 

We currently ship around an average of 140K orders a month between our sales channels, but a lot of that includes our subscription orders through Recharge. Our customers are extremely loyal, so our subscription volume consistently grows every month—and we rely on ShipBob to fulfill all of them. 

Outsourcing subscription volume to ShipBob allowed our Miami warehousing team to focus on more VIP clientele, and ShipBob has never missed a beat. Their close partnership with Recharge and focus on operations has helped ShipBob maintain a 99% SLA accuracy consistently. We’ve never had to worry about accuracy with ShipBob.  

Achieving round-the-clock support from ShipBob’s all-star team 

The level of support we’ve received from ShipBob’s account management team has honestly been amazing. For the past two years, we’ve had an all-star team; they go above and beyond for us. 

We never stop running our business, and I know I can call our MSM and they’ll answer, looping in the tech team to troubleshoot anything. They’ve been incredible, and they truly understand our business and our needs.   

What’s next for Aroma360 

We’re focusing on two main growth initiatives in the near future: expanding our retail presence and expanding internationally.  

Our retail locations have been super successful—in our industry, people really like to smell a scent before they buy it, so being able to offer that opportunity in person is a huge conversion lever for us. The brand awareness is also amazing; every time we open a location in a certain area, it actually drives a lot more sales to our website. We have about 22 stores right now, and we only plan on growing from there.  

We’re also continuing to grow globally and launch our business in new markets. We’ve found niches in Dubai and London, and Canada is a huge market for us, so there’s a lot of opportunity for expansion in those countries and beyond.  

And, as always, we’re continuously expanding our product line. Our customers are extremely loyal, and when they find a scent they like, they’ll want it in every form (perfume, candles, room sprays, etc.). So, we’re always innovating to keep up with our consumers and bring them new, exciting fragrances to explore—and always using the most high-quality oils in the process. We will never compromise on quality; our customers deserve the best, and we’re thrilled to deliver it. 

Aroma360’s team at ShipBob

Makenna Bell

Makenna is the Merchant Success Manager at ShipBob who supports Aroma360.

Dhruv Saxena

Dhruv is the Co-Founder and CEO of ShipBob, and serves as the Executive Sponsor for Aroma360. 

Get started with ShipBob

Want to improve your ecommerce fulfillment strategy and scale your business? Discover if ShipBob is the right fit for your brand and request a fulfillment quote below.

The post How Aroma360 Saves $6/Order and Cut Shipping Times by 88% by Leveraging ShipBob’s Global Network [Case Study] appeared first on ShipBob.

Shipping items in the wrong-sized packaging isn’t just a waste of space and materials; it’s actually more expensive for the ecommerce brand. To cut shipping costs, protect the products inside, and avoid disgruntled customers, it’s critical for ecommerce businesses to master cartonization and ship every order in the most optimally-sized box or poly mailer.  

In this article, we’ll walk through what cartonization is, how cartonization software works, how it benefits ecommerce brands, and how experts like ShipBob leverage it for you.   

What is cartonization? 

Cartonization is a key capability in modern warehouse management systems (WMS), as it: 

• Enables ecommerce businesses to speed up their fulfillment operations while optimizing their shipping costs and the customer experience. 
• Helps brands work toward a more sustainable supply chain.  
• Protects goods in transit to minimize damage and costly reshipments.  

Let’s define cartonization in ecommerce logistics 

Cartonization plays a vital role in the overall ecommerce logistics workflow, enabling a more efficient packing process.  

It involves measuring the dimensions of every product that can be shipped out (including width, length, and height), and noting other characteristics that could impact the packing process, such as fragility, shape, or material. Using this data, either through manual calculation or a software’s algorithm, a business determined the optimal packaging type and size for each order’s particular set of items. 

In this way, cartonization helps brands avoid sending out items in needlessly-large boxes (which inflates shipping costs and leaves lots of empty space for the item to move around during transit) or unnecessarily small ones (which could break open during shipping and threaten the integrity of the items inside). 

How cartonization software works (+ types) 

Cartonization software automates the packaging selection process with the help of an advanced algorithm that accounts for a few key variables to select the ideal packaging conditions. These variables include: 

• Width 
• Length 
• Height 
• Shape 
• Weight 
• Material 
• Product type (HAZMAT, perishable, etc.) 

It then recommends the ideal packing configuration to make the most of available space and ensure items are transported safely. It also ensures cost-efficiency, as it helps reduce packaging waste and minimize additional carrier fees. 

Key components of cartonization software 

Most cartonization software solutions include the following core functionalities to support packaging optimization: 

• Database containing detailed measurements of every SKU in your inventory 
• Library of available carton sizes 
• Packing algorithm that’s capable of recommending ideal packing configurations 
• Custom packing rules for packaging design customization 
• Quantity-based configurations to effectively handle different order sizes 
• Suggestions for appropriate cushioning material like dunnage 
• Seamless order data integration to efficiently pull necessary order information 

Basic vs. advanced cartonization software 

You can find basic cartonization tools that offer simple packing recommendations using fixed parameters. While this satisfies its purpose to some extent, it comes with limitations since it doesn’t account for the complexities associated with mixed item shipments and custom packaging. This makes it suitable for businesses selling just a few types of products and often handle predictable or single-item shipments. 

Meanwhile, advanced cartonization tools are capable of handling more complex packing requirements. They leverage AI to make real-time, data-driven packaging decisions to optimize packing efficiency and reduce the number of cartons needed. 

As such, advanced cartonization tools can seamlessly handle custom packing requirements and assign multiple SKUs to a single box. They use historical data to create new configurations and constantly optimize your packaging recommendations. This makes them ideal for businesses dealing with a diverse product mix that’s constantly evolving, and for smaller operations as well.

Benefits and applications of cartonization in ecommerce 

While it may seem easier or faster to pack products in any container you have on hand, cartonization is better for your brand in the long run. Here are just some of the benefits of cartonization for ecommerce businesses, and why you should take the time to invest in it.  

How ShipBob unlocks cartonization benefits for ecommerce brands 

As a leading omnifufillment platform, ShipBob leverages advanced cartonization technology to optimize the packing process and minimize packing mistakes for thousands of ecommerce brands. Here are just some of the ways that ShipBob helps brands save time, money, and effort in fulfillment and beyond.  

Advanced cartonization algorithms in ShipBob’s WMS 

ShipBob’s WMS features built-in algorithms to optimize the packing process. The data-driven packing workflow draws on your brand’s specific inventory and order data to automatically choose the best packaging for each order, recommending boxes based on size, material, and other factors. That way, your packing team can pack orders to make the most use of space, allowing you to reduce shipping costs. 

You can easily determine which items should be packed together, which ones should be packed separately, which packing materials should be used, and more. This significantly speeds up your packing and fulfillment operations, all contributing to faster fulfillment. 

“One of my favorite things about ShipBob is the visibility, one example of which is receiving a breakdown of how much it costs to fulfill each of our items.  ShipBob uses a Cubiscan, so they have the correct measurements of each product. From there they say, “Based on these dimensions, this specific product mix will be packed in this specific box size. Here is the rate.” So, by that system, we know that one of our bottles is going to cost us let’s say $4 to pick, pack, and ship.”

Cesar Contreras, Head of Supply Chain of Wholesome Goods 

Custom packaging solutions for brand consistency 

ShipBob’s customization suite provides you with endless options for optimizing your packaging on top of cartonization. You can ship out orders in custom branded packaging to maintain a consistent and premium look and feel for all your orders, and ShipBob’s proprietary box algorithm will always use a triple Cubiscan process to recommend the ideal packaging option based on product dimensions, weights, and your chosen SKU-level packaging preferences. 

You can also create ready-to-ship kits containing multiple SKUs to speed up the fulfillment process. You even have the option to add marketing inserts with special promotions or even include customized gift notes with every order. This allows you to create a truly personalized unboxing experience while still making use of our cartonization technology to streamline the process. 

Inventory Placement Program for cost-effective shipping 

ShipBob’s Inventory Placement Program allows you to strategically position your inventory across various locations in the U.S. This means you can ship out orders from the most convenient location based on proximity and inventory availability and significantly reduce your shipping costs while cutting down transit time. 

ShipBob leverages cartonization best practices at every one of its dozens of fulfillment centers across the globe, so no matter where your brand chooses to store inventory and fulfill orders, you have peace of mind knowing your orders are picked, packed, and shipped optimally.  

“IPP uses real order data to calculate the ideal distribution and replenishment of inventory across ShipBob’s network to minimize shipping costs and times. My team uses that tool extensively. It helps them understand the potential gains of expanding to different warehouses, and how it could save time and money – it’s been really useful. From there, our team sends all our inventory to one of ShipBob’s receiving hubs, and then ShipBob takes care of distributing those units to regional fulfillment centers across the US for us. Placing inventory closer to customers using IPP has definitely helped lower our shipping costs, but just as importantly, it enhances the customer experience.”

Sergio Tache, Founder and CEO of Dossier

For more information on how ShipBob can help your brand optimize packaging for cost and efficiency, click the button below to get in touch.

Cartonization FAQs 

Here are answers to some of the most common questions about cartonization.

How does cartonization enhance your WMS? 

Cartonization enhances your WMS by providing automated recommendations on how to pack orders, adding value to your warehouse management and fulfillment operations. 

Is cartonization important for mid-market and DTC ecommerce brands? 

Cartonization is a crucial process for determining optimal packing configurations to reduce shipping costs en masse and maintain product integrity during shipping. As a result, mid-market and DTC ecommerce brands can keep their costs low, reduce packaging waste, and improve customer satisfaction on a larger scale. 

How can ShipBob help with cartonization? 

ShipBob uses its own warehouse management system (WMS) at each of our 50+ fulfillment centers globally. This WMS features built-in cartonization algorithms, and leverages triple Cubiscan technology to measure product dimensions. The algorithm then uses this data to recommend the ideal box size and packing configurations for each order. 

What factors are considered in cartonization algorithms for optimizing packaging? 

Cartonization algorithms consider factors like item size, weight, shape, material, and product type to optimize packaging. ShipBob’s cartonization algorithm even considers your chosen SKU-level packaging preferences so you don’t rely on a one-size-fits-all approach. 

The post What is Cartonization Software? How to Reduce Ecommerce Shipping Costs and Improve Fulfillment Efficiency  appeared first on ShipBob.