Modern Retail: Guide to Fulfilment December 2021

December 2021

modernretail.co.uk

GUIDE TO...

FULFILMENT

Your name here

Grow your business with our personalised eCommerce fulfilment www.thephlgroup.co.uk / hello@thephlgroup.co.uk

Are you you prepared prepared Are for peak peak 2021?

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Order Management

Inventory Management

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Delivery Management

Branding

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CONTENTS Why do retailers outsource fulfilment?

06

Lipstick Powder & Pack

10

Fulfilling ecommerce orders at pace, but with accuracy

12

6 stages of retail fulfilment

15

Warehousing for omnichannel retail

18

Figuring out fulfilment remains key to ecommerce success

22

5 steps to more eco-friendly fulfilment

25

Make your warehouse work smarter

30

Dropshipping: the pros and cons

33

Company Profile: Sealed Air

36

Ecommerce need not be held up by customs clearance

38

Inventory management is essential for smooth fulfilment

40

How retailers can benefit from cross-border delivery

42

The guide to managing returns effectively

45

Fulfilment: Communication is key

48

Contributors

Credits

Thanks

Managing Editor Rob Gamage - rob@modernretail.co.uk

Many thanks to all those who provided editorial content or images, helping us to compile what we hope is a useful and informative read! Please send any comments or suggestions to rob@modernretail.co.uk.

Content Editor Holly Worthington - holly@modernretail.co.uk

Holly Worthington Holly brings a wealth of experience in both print and digital publishing. As Modern Retail’s Content Editor, Holly is passionate about helping independent retailers to thrive in today’s ever-changing market.

Business Development Manager Emma Mjekiqi - emma@modernretail.co.uk

Modern Retail is published by Considered Digital Ltd (Registered Company Number 12684643).

Registered office address: 39 The Metro Centre, Tolpits Lane, Watford, Hertfordshire, United Kingdom, WD18 9SB.

Why do retailers outsource fulfilment?

Outsourcing fulfilment has become a popular option for retailers around the world. Given the important role that fulfilment plays in customer satisfaction, there is little room for error, making this a key consideration for every retailer.

What is outsourced fulfilment?

Often referred to as the third-party fulfilment (3PL) model, this method means an external company takes care of inventory and order fulfilment on behalf of the retailer.

It requires retailers to pay a fee to the fulfilment company, however it can allow retailers to utilise their time more effectively, allowing for business growth.

Why outsource fulfilment?

Expertise The people responsible for managing outsourced fulfilment are experts in this field. Allowing skilled staff to take care of logistics means you can leave it to them, safe in the knowledge that they know what they are doing.

Greater network and capabilities Industry-leading 3PL providers will have technology suited to automating

Contributor: Holly Worthington

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fulfilment processes, as well as having supply chain insights. Having access to this information and streamlined operations can offer great benefits to retailers. Their broader reach also makes it possible to grow into new markets.

Ability to scale Retailers can grow faster with a 3PL, as they can scale up and down as required.

With self-fulfilment, a sudden surge in orders can overwhelm a retailer that is having to manage picking, packing and delivery, however when it is outsourced, this does not become an issue.

Saving time Possibly the most noticeable difference with outsourcing fulfilment is that it saves time. It may take a little time to find the right 3PL, however once this has been set up and the processes are in place, retailers can focus their time and efforts on other aspects of their business.

“Retailers can grow faster with a 3PL, as they can scale up and down as required.”

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Lipstick, Powder and Pick Cosmetics distribution operation sees efficiency boost after automated investment.

For the retail industry it’s not about the technology, it’s about remaining competitive and driving an improved customer service whilst keeping a keen eye on the bottom line.

Kardex Remstar is seeing a real requirement in enabling ‘realtime’ optimisation, which is then reflected in an increase in picking accuracy and picking speeds which are increased by 400%. Being competitive and delivering a faster more accurate service at a lower TCO is still the main motivator.

Mary Kay is one of the leading companies for direct sales of makeup and skin care and Lesley Cosmetics is the authorised and exclusive distributor for Mary Kay in the Nordics. The company wanted an efficient solution that reduced delivery time and increased picking speed and accuracy. By purchasing a Megamat RS350 they increased picking speeds by 200-300%, reduced picking errors from 1.5% to 0.87% and created a better flow in the warehouse, with a more ergonomic workspace and rotation in staff work tasks. With Kardex Power Pick Global software they now deliver a fast storage and retrieval solution with 3,000 order lines easily picked in a one-day shift.

In the end it’s about how your bottom line will be impacted. As Intralogistics applications continue to be scrutinised in terms of efficiency: They must work more

Contributor: Kardex Remstar

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flexibly, stock a wider range of items within a smaller space and guarantee faster retrieval times. To cope with these demands, Kardex has developed a new generation of automated storage systems, which also offer high order picking performance and represent excellent value for money, while consuming little energy and occupying little space.

With customer demand escalating faster than ever before, e-commerce retailers and distributors are turning to more effective ways to maintain/increase intralogistics processes whilst keeping a keen eye on the bottom line.

Kardex is a global industry partner for intralogistics solutions and a leading supplier of automated storage solutions and material handling systems. To learn more contact www.kardex.com or visit our ecommerce insights.

Smart Intralogistic Solutions Save time. Save space. Automate.

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Whether you have complex logistic needs or look for scalable storage solutions. Kardex Remstar enables you to stay ahead of the game by optimising your warehouse with efficient automated storage and retrieval systems.

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Fulfilling ecommerce orders at pace, but with accuracy

By Ben Kaye, ecommerce and OMS expert at Mintsoft

Peak season is upon us and as online retailers know all too well, it can be one of the most rewarding – and at the same time – most stressful times for ecommerce. As new online purchasing habits collide with peak season sales, online retailers need to be prepared for larger order intakes, rising transport costs, and delivery delays. Combine that with customer expectations rapidly evolving, with the need of some sort of value at every touch point (easy payment options, cheap and convenient shipping and returns, and a seamless shopping experience) there’s a lot of pressure on online retailers to not only fulfil orders accurately, but offer an unrivalled customer experience.

So, how is it possible to fulfil orders quickly, whilst ensuring accuracy?

Be in control of inventory levels When we talk about providing quick and accurate orders, your first thought probably isn’t to go and spend time completing a full inventory overview. But knowing about your inventory levels is pivotal to preparing for busy periods of business – you don’t want to end up overselling stock or allowing customers to buy products you don’t currently have access to.

Mobile barcode scanning makes it easier (and quicker) to manage inventory, by allowing you to easily scan items in and out, as well as transfer stock to different locations. Another benefit of barcode scanning is increased picking accuracy, as it offer the ability to use multiple picking orders; from bulk batch picking, through to multi and single tote picking.

Anticipating peaks, becoming aware of lead times from suppliers and getting a handle on the data behind your inventory also saves you time later down the line – preparation is key after all. If you encounter

Read on to find out more.

Contributor: Mintsoft

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multiple errors being made in the picking and packing process, or have noticed common causes to order fulfilment issues, it might be time to invest in an inventory management system. An inventory management system will help to compile customer information and filter data into one place. Many order management systems (OMS) support integrations with inventory systems, meaning you can manage your online shops across multiple ecommerce channels and inventory levels from a single platform.

If your inventory isn’t synced to your online stores, it is likely you will exceed order capacity and you won’t be able to deliver. You can take advantage of a range of management reporting for inventory by using the right software. By using an OMS for example, automated reports can be set up and sent every day, week or month, and can also be teamed with critical alert notifications for out of stock, low stock and general stock movements – meaning you’ll never oversell again.

Built pick and pack areas with efficiency in mind If your picking and packing strategy isn’t speedy (and accurate) it will cost you time and money. In addition to wanting their delivery quickly, customers also expect to be informed at every step of the buying journey, which means things like regular email updates, tracking information and delivery status alerts – a 24/7 service, essentially.

This is all made simple if you use an OMS, and although you might have delved into automation and even considered robotics to reduce manual errors, there are additional steps you can make to guarantee accurate picking and packing. Simple tweaks to your warehouse layout can begin to ensure

maximum efficiency. For example, bestsellers and fast selling items should be all close to hand, while SKUs need to be clear, well labelled, and distinct.

If you use a 3PL or fulfilment house, it’s worth finding out how they manage the picking and packing process.

Many warehouses still rely on printed lists and manual processes, whilst some have streamlined this process by using automated software.

One example of this is using smart tech, such as mobile barcode picking and API integrations. The major benefit to automating processes and connecting channels such as inventory systems and couriers is that stock is updated in real time. It is then automatically transmitted to any connected sales channels for inventory sync, shipping, invoicing and more.

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Although it can be slightly more costly to partner with a logistics or fulfilment provider that has invested in automated and cloud-based software, you’ll save money overall by being able to offer your customers quick and accurate deliveries.

Speedy shipments As the only touch-point with a customer when selling online is the order being delivered, customer service in the ecommerce world is a lot harder. It’s more about getting ahead of what customers want, anticipating delays and issues, and meeting them head on, rather than a happy and helpful sales exec.

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Customer experience continues to be the main differentiator for the top ecommerce brands, and where delivery is concerned, this means choice and transparency.

A big part of customer experience and meeting their expectations comes in the delivery of their orders. Providing multiple shipping options to meet customer’s needs (time, price etc.), is important, and easily done by using multiple couriers.

By investing in an OMS, you’re able to integrate with multiple couriers from one centralised platform, making it easier to select the best courier for the job – with pricing and timescales in mind. Many order management systems are also able to automatically select the best courier, based on delivery needs. Logistics technology also allows you to send customers real-time updates on their order.

Shipping and fulfilment both play a pivotal role in the customer journey, especially when you consider that the point of delivery can often be the only face-to-face interaction customers will have with your brand. Therefore, speed of delivery and the accuracy of orders is pivotal to creating long lasting relationships with your customers and gaining loyalty over your competitors.

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6 stages of retail fulfilment

your fulfilment in-house, every

What are the stages of retail fulfilment?

fulfilment journey involves the same

•

Whether you outsource or manage

steps. The best businesses will design every stage of the process in a way that benefits them, making sure things are personalised to their requirements and ultimately contributing to a positive customer experience.

This article outlines the key stages of retail fulfilment, giving you top tips to help you streamline your processes.

•

Receiving inventory The first step in any fulfilment journey is to order and receive inventory. A key part of this is inventory tracking and sorting products ready for warehousing.

Typically, this will involve checking the correct inventory has arrived, categorising products and getting them ready for storage.

Warehousing The warehouse is the location that products are stored in.

Every warehouse should be suitable in terms of size and allow for tidy and accessible storage of inventory. Some retailers choose external warehouses that are on the edge of cities to reduce the cost of storage, while others prefer to have smaller warehouse spaces, or even ones that are attached to their physical premises.

Remember to consider the location of your warehouses carefully as this will impact shipping costs and logistics.

•

Picking items Every time a customer places an order, the order joins a queue and a picking list should be created.

This means staff responsible for picking are able to collect every product needed to fulfil the order.

Make sure products are stored in ways that make it easy to pick them, for example, having easily accessible containers, rather than ones with lids on.

•

Packing orders Once items have been picked, it is time to pack them. Having designated packing stations makes it easier and faster to prepare orders for shipping.

Packaging materials should be designed to protect products in transit, while keeping weight and

Contributor: Holly Worthington

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“Remember to consider the location of your warehouses carefully as this will impact shipping costs and logistics.”

size of packages to a minimum, to reduce unnecessary shipping costs.

Many retailers are now looking at eco-friendly alternatives to traditionally-used materials.

•

Shipping orders Once an order is packed and ready to go, it is time to ship them to the customer. Ensure you honour any shipping policies in order to meet customer expectations.

Communicating updated shipping times is a great way to ensure you keep customers happy, even if there are any unexpected delays.

•

Returns processing Customers will inevitably return products at times, which means you must be prepared for this.

To prevent returns causing issues, make sure you have a returns policy in place, as well as set processes for dealing with this.

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Warehousing for omnichannel retail Warehousing and operations must align for omnichannel retail to succeed.

The great news is that you can choose a warehousing option that works for you, making sure it fits your requirements.

Mastering the warehousing side of omnichannel retail allows smaller retailers to offer delivery and fulfilment options that can keep up with retail giants, such as Amazon.

What is an omnichannel warehouse?

An omnichannel warehouse is not the same as a traditional warehouse. It must be designed to facilitate a range of different types of order, from brick-and-mortar, to online and click and collect.

Being able to utilise one space to fulfil orders placed through different channels means you can integrate your supply chain, creating a more efficient process, as well as keeping costs down.

Choosing the right warehouse for your business The warehouse you choose will play a pivotal role in the way your retail business functions. Some retailers outsource their warehousing to a professional company that specialises in storage and inventory management, however others may choose to hire storage space and manage this in-house.

Winner of the Good Retail Awards, Harts of Stur have created a highly successful omnichannel warehouse of their own, fulfilling orders online and offline from a warehouse beside their store.

Multiple omnichannel warehouses It can be beneficial to have multiple warehouses, enabling retailers to compete with the fast delivery offered

by Amazon. To do this, it is important to have an in-depth understanding of stock levels across different warehouses.

Contributor: Holly Worthington

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Benefits of operating numerous omnichannel warehouses include: • Being able to ship from the closest warehouse to customers • Reduced delivery times • Better collaboration between stores and ecommerce

Questions to ask your warehouse If you are outsourcing your fulfilment, there are key questions related to your warehouse that you should ask.

These can include: • Do they have the capacity for you to scale up or down as required?

• Does the warehousing include a picking and packing service?

• Are there options to include inventory management?

• Can their technology integrate with your website?

• How do they deal with returns?

• Will you have a dedicated account manager?

• If shipping directly, which companies do they use?

• Is inventory insured?

• How long is the warehousing contract?

By finding out these important pieces of information, you can make a decision that is beneficial for your business, allowing you to make the most of omnichannel retail.

“It can be beneficial to have multiple warehouses, enabling retailers to compete with the fast delivery offered

by Amazon.”

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PHL provide a wide range of services, to include D2C, B2B and Marketplace order fulfilment. Treat your customers to a first-rate experience, with a fully customised fulfilment solution.

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Excellent customer service across multiple platforms & languages

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Grow your business with our personalised, customer-friendly approach to fulfilment. Working in partnership with you to achieve your goals and ambitions.

PHL offer a reliable outsourcing solution with flexible and affordable pricing.

Speak to our friendly team today. Find out how our flexible fulfilment can help your business flourish!

Figuring out fulfilment remains key to ecommerce success The high street may have fully

We are seeing a new generation of

reopened in Britain earlier this year,

retail innovators carve out niches

but the momentum behind ecommerce

and earn themselves a handy living.

shows no sign of abating. Over the

More businesses are connecting

past 18 months we have witnessed an

directly with their audiences to sell

online shopping revolution. Existing

them everything from subscription

patrons have greatly increased their

toiletries to prescription glasses.

reliance on ecommerce; new audiences have started shopping online for the first time – and they’ve been delighted by the ease and convenience offered.

There will be no going back. At least 55% of the population are regular online shoppers. Right now even the UK’s leading high street brands are refocusing on their online presence.

It’s an exciting moment for budding entrepreneurs, independent retailers, and consumer-facing brands of all shapes and sizes. Digital software has made it possible for literally anyone to set up their own ecommerce business and start selling far and wide.

But let’s not get carried away in the ecommerce hype. Away from the shiny digital store fronts, significant barriers to growth remain. While anyone can become an ecommerce seller, the business of actually fulfilling the orders

The alternative is for these businesses to take on the fulfilment challenge themselves. Unfortunately, what they typically discover is that it’s a full-time job and a massive distraction from their core focus of trying to sustain, market and grow their business.

is currently causing problems for retailers across the UK.

Conventional fulfilment is inaccessible While more and more businesses are selling online – from hobbyists and part-timers to sole traders and micro-businesses – the traditional fulfilment industry still prioritises major retail brands, largely

Contributor: Credit Martin Bysh, co-Founder at Huboo

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because it doesn’t know how to do anything else. These fulfilment providers want to serve big companies that sell simple, easy-to-categorise products.

If an ecommerce business doesn’t fit this mould, it’s not even worth making enquiries in this direction – a huge barrier to the development of young, high-potential British ecommerce businesses.

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Shifting consumer demands Further, every consumer-facing business is today competing in a digital-first retail landscape in which charging for delivery is getting harder to justify. Consumers expect delivery to be free, returns to be free (and easy), and they’re less and less willing to wait more than 48 hours for their orders.

“The traditional fulfilment industry cannot hope to meet the needs of today’s ecommerce customer.”

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They also expect consistency, particularly when it comes to subscriptions for everyday essential items. Orders need to show up on time, every single month or, in just a few clicks, subscribers will cancel and take their custom elsewhere.

Add to that the growing calls for more sustainable packaging and it’s understandable why ecommerce providers are feeling so overwhelmed by the demands of day-to-day fulfilment.

Even if an ecommerce provider has outsourced its fulfilment to a third party, they’ll be the one that gets it in the neck if their customers are unhappy with the fulfilment provider’s eco-credentials.

The need for human-centric fulfilment The traditional fulfilment industry cannot hope to meet the needs of today’s

ecommerce customer, and as businesses attempt to sell via more online channels into more markets, its shortcomings are becoming more and more exposed.

It’s the limiting factor that explains why 90% of new ecommerce businesses fail in their first year.

So it’s time for retail entrepreneurs and ambitious ecommerce business owners to turn to the emerging tech-powered fulfilment industry, where a number of companies are springing up with propositions purpose-built for smaller sellers, fast-growth ecommerce businesses and emerging D2C brands. Many of these providers are more affordable and willing to accept lower baseline order volumes, meaning that ecommerce providers can outsource their fulfilment far earlier in their growth journey. Some have even reimagined the warehousing process, using technology not to replace human workers, but to empower them, making them more

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efficient, better able to support customers and clients, and happier in their jobs.

For all of the diversity and opportunity to be found within the burgeoning ecommerce market, when it comes to fulfilling the goods there really aren’t too many options available. For retailers, the choice is clear: attempt to handle fulfilment in-house and risk getting swamped within an ongoing logistical nightmare, attempt (and most likely fail) to secure the services of an old-school provider, or do a bit of extra homework and seek out one of the new breed of fulfilment partners.

It’s never been easier to set up an ecommerce business, but the ecommerce businesses that ultimately succeed will be the ones that solve their fulfilment conundrums at an early stage, before it becomes an all-consuming distraction from the opportunity at hand.

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5 steps to more eco-friendly fulfilment The supply chain can be adapted to become more sustainable, however it is often overlooked. With 69% of consumers doing everything they can to reduce their carbon footprint, making sure your working practices meet this demand is becoming key to maintaining customer loyalty.

An enormous 83% of consumers say businesses should be doing more to be environmentally sustainable, while 34% are willing to pay 5.5% more for goods that result in less harm to the environment.

We reveal five ways that you can make your fulfilment more eco-friendly.

1. Partner with eco-friendly suppliers Joining forces with businesses that care about their impact on the environment is a great way to reduce your carbon footprint. Many fulfilment services fail to consider this step, for example, Amazon FBA, which sees retailers initially ship to Amazon’s warehouses, and products then being shipped for a second time when an order is placed.

Ask questions about suppliers’ practices and choose to work with those that implement green practices throughout each stage of fulfilment.

Having visibility throughout the supply chain and sharing this information with customers can encourage them to buy from you, as well as having a positive impact.

2. Utilise sustainable delivery options There are various types of sustainable delivery options available to retailers.

The first of these is using couriers that have electric vehicles. Hermes, DPD and Yodel have invested into low-emission vehicles and fleets of electric vehicles.

Contributor: Holly Worthington

Software is also having a significant impact on fulfilment. Route-finding technology is able to determine

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the most environmentally friendly routes for drivers to take, while GPS tracking software can help drivers to optimise their performance and reduce emissions.

Home delivery is not the only option, with click and collect reducing the distance that vehicles have to drive, while catering to the 84% of people that would prefer not to wait at home for their order to arrive.

3. Eco-friendly warehouse practices There is no need to fall into old habits and continue to use a warehouse that does everything manually… in fact, that is often the least efficient way to do things. Using automation and technology in warehousing can work to speed processes up while improving accuracy.

Automated storage and retrieval systems (ASRS) are growing in popularity, making it possible for items to be picked on demand, reducing energy usage while requiring less warehouse space.

Because they can be run without the need for people in the warehouse, it can also reduce the cost of heating and lighting, as it is not typically required.

4. Warehouse design There are many ways that warehouses can be designed in an eco-friendly and efficient way.

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“With more consumers being environmentally conscious, an increasing number of people are choosing to work with retailers that take notice of their sustainability.”

Many warehouses are being created using recycled or reused materials, reducing the impact on the environment from the moment it is built.

Having adequate insulation, double glazed windows, sensor-controlled lighting and solar panels are fantastic methods of reducing energy consumption, saving money and enhancing warehouse efficiency.

5. Green energy suppliers Choosing to work with a green energy supplier is a great way to know that the gas and electricity you use comes from green and renewable sources, helping to have a more positive impact on the planet.

Get started now With more consumers being environmentally conscious, an increasing number of people are choosing to work with retailers that take notice of their sustainability. Take these simple steps towards making your supply chain and fulfilment more eco-friendly.

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P U B L I C AT I O N B R O U G H T T O YO U B Y

A complete fulfilment solution for multi-channel retailers Comprehensive management of all activity with ISO 9001, ISO 14001 and ISO 22301 accredited systems • Contact centre services

• Picking and packing

• E-commerce integration

• Despatch and delivery

• Secure storage

• Returns management

01375 484 555 gweekes@ecgroup.co.uk

www.ecgroup.co.uk

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Make your warehouse work smarter Use pallet racking for small parts storage and turn a ubiquitous storage product into a flexible order picking solution.

While constant innovation generates a stream of new intralogistics solutions, ‘classic’ pallet racking remains the most commonly used storage system.

Its relatively low investment costs and flexibility have made it an indispensable framework for storage and order picking systems.

The drive to minimise stock levels for each SKU and improve picking process efficiency to speed up order fulfilment, combined with demands for Just-in-Time delivery and online retail, is generating a greater need for small parts storage.

Adaptability & efficiency This is where the adaptability of pallet racking comes to the fore because small parts picking can be easily integrated within pallet racks. One option is to create small parts pick locations on the reachable ground level, with upper storage levels serving as a buffer store for replenishment.

Contributor: BITO

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This will result in a reasonably efficient picking process but ground floor locations within a pallet rack will, of course, be limited. Solutions are therefore required to maximise the available floor space to create a pick face with sufficient locations

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for the required SKUs, and enough stock to ensure availability during picks.

Flow shelves for fifo Flow, or roller track, shelves can be easily installed into pallet racking to increase the number of pick locations and volume of SKUs located on the ground level pick face. Goods are easily picked from the front of the racking – the rollers on the flow shelves allow bins and containers containing small items to be picked roll smoothly to the front of the shelf.

A full container of items will roll to the operator each time the empty one at the front removed.

Shelving Standard shelving is another option to create flexible small item pick faces within pallet racking. The simplest solution is static shelving at right angles to the racking, with space in between each run to facilitate picking. An alternative option is pull-out mobile shelving that maximises the available space under the racking – though movement of shelving has a negative impact on pick time. A third solution involves static shelving parallel

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to racking, which makes front items easy to pick. In all cases, shelving dividers can be fitted to organise pick locations better.

Inclined supply shelving within a pallet racking bay will make items clearly visible for picking. Cardboard cartons or plastic bins can be used, though the latter option enables preparation in advance at the goods-in area by filling the plastic bin with the items to be picked.

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Bins complete the solution BITO’s comprehensive range of plastic bins and containers includes different sizes, with all kinds of accessories, for use in shelving and in flow racks.

Working as a one stop shop solution with BITO pallet racking, shelving and flow racks, they will keep goods protected throughout the intralogistics process and during transport to ensure the quality of products are delivered to the customer in prime condition.

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Dropshipping: the pros and cons Dropshipping is a way of entering the online retail market without having to commit to purchasing stock up front.

Increased publicity surrounding this retail approach has seen it presented as the ultimate business model, however there are plenty of pros and cons that need considering.

Benefits of dropshipping Dropshipping has many advantages, which we will now explore.

1. Lower startup costs Retailers that choose to implement this model do not have to invest cash into inventory. Instead of having the risk of spending money on unsold stock, retailers only pay suppliers once the customer has placed an order.

2. You can test new products with less risk Dropshipping enables you to test new products and markets without having to commit to purchasing stock. This means you can add new products to existing ranges, or even offer completely new products, without having the risk of failing to sell them.

3. More product variety The benefit of having less overheads and no space limitations is that retailers can offer more choices for their customers. This means retailers can have a vast range of different products for sale on their website, as well as regularly updating their inventory, which increases the likelihood of sales.

Contributor: Holly Worthington

4. It requires less time investment Dropshipping allows retailers to focus on other aspects of their business, as they don’t have to deal with stock inventory or fulfilling orders.

Organising stock, liaising with delivery companies and dealing with large

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volumes of products can be incredibly time-consuming. But if you dropship, it means you don’t have to worry about the handling, labelling, packing or shipping side of the business, as the stock and inventory is taken care of by the supplier.

5. You can start selling quickly In typical retail models, you would need to wait until you physically had the stock, before beginning to sell it online. With dropshipping, you can start promoting items almost immediately, using imagery and product descriptions from the supplier.

6. Cost-effective Dropshipping can also result in cost savings, as certain aspects of the business are taken care of by the supplier. As an example, retailers that choose to use this model do not require warehouse space, which can save significant sums of money over the year.

Pitfalls of dropshipping As with any business model, there are drawbacks as well as benefits.

1. Your reputation relies on a third party When you choose to dropship, you don’t get to carry out quality control checks and you have no control over shipping. Instead, your chosen supplier is solely responsible for sending the correct items in a suitable way to customers. Choosing a reputable and

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reliable supplier is the best way to counteract this issue, however, you must be able to trust them, otherwise it can quickly damage your business’ reputation, even if issues aren’t necessarily your fault.

2. Customer service challenges While you don’t have to deal with the fulfilment side of the business, this can result in customer service issues. If you receive a complaint, you have no idea of whether an order arrived on time or as described, meaning you must contact the supplier for more information every time. This can be a time-consuming process, resulting in delayed responses to customers and elongated periods of time to find a solution.

3. Stock availability If a specific product goes out of stock and you are unaware, customers will

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continue to place orders. When this happens, it can be time consuming to resolve, having to offer alternatives or refunds to disappointed customers.

Making sure your supplier is transparent about the quantity of remaining stock, and/or effective with their communication, is key in avoiding this costly mistake.

4. Lack of product information Many suppliers provide limited product information, meaning retailers may not know dimensions of items, or be able to answer customers’ specific questions.

This can make it difficult to market the products online, as well as harming SEO due to a lack of unique information.

In addition to this, having to regularly forward questions onto the supplier causes delays and can leave customers feeling ignored. Ensuring you have plenty

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of product information before agreeing to work with a supplier is incredibly important, helping you to increase sales and create a streamlined customer experience. You should also order sample products, as explained later in this guide, to make sure you have experienced and seen the product first-hand.

5. Lower profit margins While your initial investment and financial risks are reduced, the penalty for this is often a lack of bulk pricing.

In comparison to purchasing large quantities of stock, the cost per unit is typically higher, resulting in less profit.

“Dropshipping enables you to test new products and markets without having to commit to purchasing stock.”

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Company Profile: Sealed Air Sealed Air is a global leader in packaging solutions. We are in business to protect, solve critical packaging challenges, and leave our world better than we found it.

Our solutions and systems include SEALED AIR® brand protective packaging, AUTOBAG® brand automated systems and BUBBLE WRAP® brand packaging.

These brands collectively enhance commerce through fulfilment and packaging solutions to protect the worldwide movement of goods.

Sealed Air has launched a new paper void fill system to help ecommerce companies meet the challenges of quickly scaling up and satisfying fast-growing demand for orders.

The new Sealed Air® brand FasFil® Jr has a small footprint and has been developed as a ‘plug and play’ system for quick set-up and easy operation.

It features fully integrated user-friendly controls, with the ability to create custom void fill material using 100% recycled fanfold paper, which is also responsibly sourced. Toolless jam clearing and anti-jam sensors help to enhance system reliability and uptime.

Sealed Air has also set a new standard in sustainability and protection with the launch of a range of mailers that contain more recycled content than any similar product on the market.

With ecommerce on the rise, people are increasingly choosing to use mailers over larger packaging alternatives such as corrugated boxes – saving time, energy, space and in some cases around 35% in postal costs.

The new Bubble Wrap® brand Mail Lite® mailers are designed for recycling, as the inner bubble sleeve can be easily detached

Contributor: Sealed Air

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from the outer paper sleeve, which in turn uses FSC® certified, non-coated Kraft paper from responsible forestry.

Each component can then be separately reused or recycled in the appropriate waste stream.

The redeveloped Bubble Wrap® brand AirCap® bubble liner uniquely contains a minimum of 60% recycled material.

In addition, due to Sealed Air’s unique co-extruded air retention layer, the mailers are stronger and provide more protection in transit than non-barrier bubble materials.

The new Mail Lite® mailers represent a significant step towards achieving Sealed Air’s pledge to make all its products 100% recyclable by 2025.

Sealed Air | T: +44 1536 315700 | E: info-pack@sealedair.com | www.sealedair.com https://twitter.com/Sealed_Air https://www.linkedin.com/company/ sealed-air-corporation/ http://www.youtube.com/user/ SealedAirCorp https://www.facebook.com/ SealedAirCorp/

SMALL IN SIZE, BIG ON PERFORMANCE FasFil Jr – paper void fill system for increased productivity Ensure your packaging operations can keep up with rising E-commerce demand. Ideal for medium volume outputs, the New FasFil Jr is a compact and multi-featured paper void fill system. Easy to position in busy and tight workspaces, you can increase your productivity in seconds.

• Uses 100% recycled fanfold paper • Floor or table-top mounting • Multiple operating modes • Integrated controls • Plug and play – one button operation

Go Big today with your trial here!

https://sealedair.co.uk/en-gb/Fasfil-Jr

Sealed Air | T: +44 1536 315700 | E: info-pack@sealedair.com | www.sealedair.com

© Sealed Air Corporation 2021. All rights reserved.

Ecommerce need not be held up by customs clearance Since Brexit, the list of requirements to move parcels between the UK and EU has multiplied and with it the increased risk of delayed deliveries and unhappy customers. Add delays caused

by Covid and you have a perfect storm for online retailers.

Savvy retailers needn’t put up with this. Instead, they can ensure their supply chain avoids any obstacles by choosing just one business partner, UKP Worldwide, to handle their ecommerce parcel business and manage the whole customs clearance process for them.

Supply chain delays caused by customs clearance can be avoided by situating customs clearance away from the border, where the risk of bottlenecks are more likely to occur from the build-up of parcels being checked and duty paid before onward delivery.

At UKP Worldwide we have our own External Temporary Storage Facility away from the border - in leafy Buckinghamshire - where we process on-site customs clearance for UK exports and imports. The process is pain-free.

Retailers onboard to our Savvy parcel system and then they can simply upload parcel details from their desk or mobile as and when needed. We then complete the customs declaration for them, arrange any duty payments to HMRC, obtain clearance and dispatch the parcels.

The result for our retailers is a fast customs process, in many cases completed before any goods are shipped, and a supply chain that keeps moving.

Contributor: UKP Worldwide

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All shipment information is stored safely and securely, and we retain a record for HMRC should our customers need it in the future.

Importing into the UK is just as simple.

Retailers supply us with an electronic manifest giving us details of what is being imported, including product description, quantity, sales value and information on how the goods will be arriving, as well as their origin country and UK final destination. With this information to hand we can manage customs clearance and release the goods for onward delivery.

The fact that we have been working with HMRC for many years and know a thing or two about customs rules and regulations means we can really help our customers avoid the pitfalls of international ecommerce. Combine this with the flexibility of offering our customers a range of international ecommerce solutions for shipping both high value and low-value goods we hope you’ll want to partner with UKPW.

International Shipping And Customs Made Easy Our eCommerce shipping service remains as flexible as it’s always been, offering you a suite of services to suit you and your customers.

Send us your packed goods

We apply final mile label

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Domestic and international shipping

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Tracked and untracked services

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Customs clearance

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Import and Export to and from the EU

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Postponed VAT Accounting

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IOSS

We transport goods

Please contact us for further information

UKP Worldwide 01844 398880 info@ukpworldwide.com UK Office | Unit 18-19 Wornal Park, Menmarsh Road, Worminghall, Aylesbury, Bucks HP18 9JX US Office | 3390 Rand Road Ste C, South Plainfield, NJ 07080-1307 ukpworldwide.com

We clear customs

Goods Enter Postal Service

Goods Delivered to customer

Inventory management is essential for smooth fulfilment What is inventory management?

Inventory management covers everything from ordering and receiving stock, all the way through to storage, understanding stock levels and fulfilling orders and deliveries.

This process is key to any successful retail business model, whether it is based instore, utilises ecommerce, or combines the two for an omnichannel approach.

Benefits of inventory management Paying attention to inventory management means retailers can maintain suitable levels of stock.

By being aware of inventory throughout the fulfilment process, it makes it possible to prevent overspending on stock that does not sell, as well as preventing stock from running out.

Why use tech or specialists?

Tapping into expert knowledge of inventory management, or utilising platforms that are designed for this

purpose can streamline operations.

However you wish to replenish stock, these techniques allow you to optimise stock levels and customer experience, while preventing missed sales opportunities.

Retail inventory management systems give an up-to-date overview of stock levels for each item, allowing retailers to provide customers with accurate information.

What can inventory management include?

We will now look at various examples of inventory management.

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Smart storage solutions, such as racks, rails and stackable pallets

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Date control for perishable items

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Managing returns

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Automating stock level alerts

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Stock checks on a regular basis

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Reporting of stock levels

Contributor: Holly Worthington

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Reinvent your inventory management Finding the right balance between supply and demand is key to running any successful retail business. Without this information being accurate, retailers can disappoint when it comes to the fulfilment stage, causing reputational damage and ultimately, costing the business.

Understanding stock is a vital part of this puzzle, making sure all orders can be fulfilled and that this can be done in an organised and timely manner.

To get started, begin by noting any challenges that you encounter with stock and fulfilment and consider whether inventory management solutions could be the answer.

“Finding the right balance between supply and demand is key to running any successful retail business.”

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How retailers can benefit from cross-border delivery As ecommerce demand continues, retailers are adapting their offerings to meet consumer demand. One of these demands is cross-border delivery.

We take a look at what cross-border delivery is, why retailers are choosing to offer it and top tips to simplify the process.

What is cross-border delivery?

Cross border delivery has the potential to spark significant growth for online retailers.

It involves transporting products between countries, with an enormous 67% of shoppers purchasing from overseas as it is more cost-effective than buying in their own country.

Benefits of cross-border delivery Being able to ship overseas brings countless benefits for retailers of all sizes. We will now explore some of the advantages in more depth.

Reach new markets Offering cross-border delivery allows retailers to reach a wider market and grow their audience. Being able to sell in multiple countries creates greater scope for growth, enabling retailers to compete with the likes of Amazon that can ship to different countries.

Contributor: Holly Worthington

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Increased sales With a greater audience comes a greater number of sales, providing the products are of interest to the markets you sell in.

Being able to offer competitive pricing is likely to bring repeat customers, particularly if the service and products you offer are designed to impress.

Test new markets International shipping options means retailers can understand demand in other countries. Whether you have stock that doesn’t sell well, or believe there may be more interest in other regions, delivering to other countries makes it possible to test demand overseas.

Top tips for cross-border delivery Make it obvious It’s not always obvious that retailers ship overseas, so make this clear. Add branding on your website and update your social media bio to reflect this.

“Offering cross-border delivery allows retailers to reach a wider market and grow their audience.”

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Consider returns When shipping overseas, the returns process can become more complicated.

Have the right processes and policies in place to cater for this and make sure it’s promoted clearly for shoppers to see.

Demand Carry out extensive research to make sure there is significant demand for your chosen products in the country that you plan to operate in.

Delivery challenges Make sure you are aware of all requirements and implications, such as trade agreements, VAT and tax thresholds. Failing to adhere to these

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can result in additional costs and delays, ultimately disappointing the customer and damaging business.

Transparency with costs Don’t hide delivery costs from customers, as this can damage reputation. Make it clear whether you offer Delivery Duty Paid (DDP) or Delivery Duty Unpaid (DDU).

International tracking It is worth investing into a carrier that allows customers to track their package, enhancing customer experience, preventing as many customer service enquiries and reducing the likelihood of the shipments getting lost in transit.

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The guide to managing returns effectively “It is vital to make sure logistics are organised to cope with increased demand on returns throughout peak and the rest of the year.”

While peak inevitably brings increased sales, it also results in an increased number of returns. For retailers, being prepared for this is key to growing sales and customer satisfaction simultaneously.

Now is the time to ensure your returns policies and operations can handle increased demand.

Why must retailers manage returns?

Convenience is key in retail. Those that manage to simplify customers’ lives and leave them with a positive experience will get repeat business. Those that have a disorganised or unclear returns process will disappoint customers and damage their own reputation.

The only way to ensure your returns process is functional, is to make sure the procedures are in place before peak, to make sure you do not become overwhelmed.

How to manage your returns effectively 1. Reduce returns in the first place The first stage of creating a smooth-running returns process is to limit the number of returns as much as possible. By giving the consumer all of the information that they need to make an informed decision, you can reduce the likelihood of returns, helping to minimise pressure throughout peak.

Contributor:

Giving accurate product descriptions, using imagery, sizing information and in-depth product details can help customers know what to expect before they place an order.

Some retailers choose to utilise

software which showcases products being used, for example, showing what clothing looks like on different people.

2. Determine your returns policy It is vital to make sure logistics are organised to cope with increased demand on returns throughout peak and the rest of the year.

Consider whether you can offer free return postage, working out the cost of each return. An enormous 68% prefer shopping with retailers that offer free returns. If it will impact your bottom line too much, create a limited returns policy, for example, offering free returns on orders over a certain size and within a set time limit.

Some retailers choose to have returns sent to warehouses, while others opt to ship them directly to logistics partners or a physical store.

Typically, this choice will be based on convenience and the ability to sort returns.

3. Explain your returns process clearly The next step is to promote your returns policy, which can be done through website content, or infographics on social media, making sure this information is readily accessible.

Holly Worthington

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“It is vital to make sure logistics are organised to cope with increased demand on returns throughout peak and the rest of the year.”

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By making it easy for customers to find this information, you can reduce the number of customer service queries.

4. Make it hassle-free Simple steps can boost customer satisfaction. By giving a pre-printed label in every package and making envelopes resealable, all shoppers need to do is package the product, attach the label and send it off.

When making a purchase, 44% of customers prefer to shop with a business that provides reusable or resealable packaging.

Many retailers are looking at eco-friendly methods of reducing packaging waste, creating labels from biodegradable materials, or even providing QR codes to be scanned when returning packages.

5. Communicate One of the best ways to keep customers happy and informed throughout the returns process

is through updating them on the progress of their return.

Let customers know when you receive their items, what the next steps are and when they can expect their refund or replacement item.

To highlight the importance of this, 30% of consumers would rethink their decision to purchase from a retailer in the future if they were unable to track a returned item.

7. Outsource if needed If you are unable to keep up with the pressure of returns or would prefer to focus your time on other areas of the business, outsourcing could be the answer for you. By having your returns dealt with by a reliable third party, you can relax, knowing that returns are being handled by experts.

By being proactive and sending customers updates, you can increase the likelihood of them shopping with you again, as well as reducing time spent, particularly if this process is automated.

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95% of online customers will purchase again from retailers that provide positive returns or exchange experiences

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48% of consumers want to return an unwanted Christmas gift

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60% say they would reconsider shopping with a retailer again if they had to pay shipping fees to return an item

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41% prefer communication and visibility throughout the returns process, e.g. parcel tracking

6. Use data to reduce returns Collect data on returned items to help you understand the reasons that they are being sent back.

By asking customers to explain the reason for the return, it can highlight issues that you should be aware of, such as items being prone to breaking, or inaccurate sizing.

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Key returns stats:

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Fulfilment: Communication is key Successful retailers often use communication to streamline their fulfilment process. This requires a carefully designed approach with transparency throughout the supply chain.

This article takes a look at why retailers must communicate effectively to understand the whereabouts of products, from the moment they are ordered from suppliers or manufacturers, all the way through to when they arrive in the customer’s hands.

Communication with suppliers To communicate effectively, you need awareness of your logistics. This means you need to have contact with your suppliers.

In some cases, suppliers or manufacturers will ship to the retailer, while others prefer them to take care of fulfilment and ship directly to the consumer.

Having this communication allows retailers to be aware of every order’s progress and means they can inform the customer.

Make sure you have contact methods in place with suppliers and any other relevant parties, so you can access order updates as required.

Communication with customers Once you have an understanding of the whereabouts or progress of an order, it is time to update the customer.

Proactive communication can save enormous amounts of time and money.

With 98% wanting fast and honest updates to avoid a lasting negative perception of a brand, it has never been more important to keep customers informed and get it right.

Contributor: Holly Worthington

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Using automation to simplify communication Investing into automated communication can be worthwhile, saving money and time in the long run. These solutions can typically be scaled up and down as required, meaning customer service can remain impressive, regardless of demand.

An example of this would be sending customers shipping updates automatically, keeping them informed and boosting customer satisfaction.

Most customers do not like to buy from retailers who are only able to communicate via automated channels, so create a range of channels that customers can use. Social media, phone calls and emails are other popular methods of communication.

Benefits of communicating effectively There are many reasons that retailers can benefit from effective communication.

These include: •

Reducing WISMO enquiries and saving time

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Enhancing customer experience

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Driving brand loyalty

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Boosting reputation

“Investing into automated communication can be worthwhile, saving money and time in the long run.”

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Thanks for reading.

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