How to Make the Most of the Order Fulfillment Warehouse?

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

1. Divide the warehouse into specific operating areas for picking, unloading and packing, which can facilitates employees to complete their work quickly.

2. The door inside the warehouse should be opened outwards, and the effective area of the warehouse should be used reasonably.

3. While reducing the channel space in the warehouse as much as possible, ensure the smoothness of the in and out channels to ensure that the stacking of goods will not affect the operating efficiency of the employees in the warehouse.

4. While ensuring safety, increase the stacking height of goods.

5. Make reasonable use of walls and shelves, and wrap the columns in the e-commerce cloud warehouse so that the columns will not block the access.

6. Try to ensure that the route of goods in and out of the warehouse is one-way and straight, and minimize the tortuous passage. Besides, please avoid inefficient operations like reverse movement.

7. The storage of goods should be placed in a position that is convenient for loading, unloading, warehousing and extraction.

8. Set up a separate safe passage for the warehouse, and at the same time ensure that no debris can be stacked in the passage, and ensure that the passage is unblocked at all times.

9. The warehouse is equipped with standard fire-fighting facilities, and the distance between each product area is in line with industry standards.

10. Set up safety protection measures such as fire extinguishers, smoke alarm systems and anti-theft alarm systems.

11. Set up ventilation and exhaust channels to ensure the normal circulation of air.

Is Chinese drop-shipping still profitable in the Post-COVID World?

Are you an Amazon seller? How do you handle the delivery? Fulfill the order by your own warehouse or with the help of a drop-shipping company? More and more e-commerce sellers tend to cooperate with order fulfillment company in the last few years. However, some entrepreneurs begin to wonder if this is a good option in the Post-COVID World. So what is the truth? China Division will discuss this question with you in today’s blog.

Order Fulfillment is the process of storing, packaging and shipping e-commerce items. A drop shipping company needs to keep items on display in a physical brick and mortar store or provide a hard copy or online product catalog to enable customers to review items before purchasing. But influenced by COVID-19 and freight increases, is it a beneficial choice for the e-commerce companies?

We can find some reasons by tracing its history back at least to last century.

In 1984, China Post launched China’s first express service, which was the very first step about developing China’s express industry, as well as the drop shipping. In 2018, 507 million parcels were delivered, express courier companies in China on average provided services for 280 million people in a single day. 78.9% of the parcels were delivered within 72 hours. China’s courier companies have ranked first in the world in terms of processed volume for five consecutive years. Over the past 70 years, China’s logistics has embraced a large quantity of progress. In short words, these development brings much more capabilities and possibilities for the Chinese drop shipping.

In addition, many overseas order fulfillment agencies and offline stores had closed for COVID-19. At the same time, China had recovered from this epidemic gradually, which means we can arrange more and more workers and resources for the orfer fulfillment. So you can choose a Chinese third-party logistics company to enjoy more advantages in this banner year for catastrophe.

A Customer Interview about Order Fulfillment Warehouse Selection

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

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

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

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

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

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

  • All-inclusive

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

  • Partial Outsourcing A

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

  • Partial Outsourcing B

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

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

What are the Differences between Warehousing and Express Logistics?

With the vigorous development of the e-commerce industry, the order fulfillment companies are facing more opportunities and challenges. Whether it is an e-commerce company or an personal online store, they will now consider choosing e-commerce warehousing outsourcing services or cooperate with express logistics companies for delivery. Most e-commerce sellers are not clear about the specific differences, resulting in not knowing how to choose. So today we are going to tell you the differences from the following points.

Firstly, the warehousing model is mainly to cooperate with e-commerce warehouse distribution companies, which is aimed at establishing a warehousing information network based on multiple levels. After receiving the customer’s order, the e-commerce buyer transfers the information to the e-commerce warehouse through the warehouse management system. The warehouse staff selects the items from the warehouse through the system, and then directly and quickly delivers the goods. This is what people call “B2C model”.

Simply put, the service provided by express logistics companies is “transfer and transfer again.” The express staff collect the goods and check them according to the order information, and then uniformly transport them to the express transit center for transit sorting, and then carry out trunk transportation and distribution, which eliminates the need for storage classification management and brings more  convenience of delivery speed control and delivery error reduction. This can be classified as a “C2C model”.

What is the Hot-selling Item in Your Industry?

It is a truth that all the drop-shippers and e-commerce sellers want to benefit from their business. Therefore, bestselling and potential products count for a lot. Today China Division will share a number of hot-selling items with you.

  • Houseware & Kitchenware

Cooking time will be an unforgettable memory during COVID-19 since more and more people choose home-made meal, instead of take-out or restaurant eating. So the shopkeeper can offer some household items and cooking tools( ice ball mold, potato masher, etc.) for better sales.

  • Pet Accessories

Under the impact of COVID-19, many people choose to stay at home to enjoy happy hours with their family and pet. One of our customer said his Amazon and AliExpress store were out of pet supplies last week, which remind us of the importance of adequate stocking. The cat bed and dog leash are the promising items in the field of cross-border e-commerce.

  • Sports Equipment

A healthy body is the basic of other things. You may realize the significance of health in this war of epidemic. The stronger your immunity, the less likely you are to get infected. It’s worth noting that video classes with fitness instructors are chosen by both men and women, especially those who want to have a weight loss and body shaping at home. Thus, are you prepared for selling  fitness belt or yoga pants?

  • Kids Accessories

It is not practical to prepare a baby shower or birthday party during COVID-19, but you can create surprise for your baby. There are lots of things related to the surprise, kids clothes, newborn blanket, kids pen, mini toys, etc. Isn’t it an ideal gift?

  • Personal Care Products

There are no ugly women, only lazy ones. As long as you want to be beautiful, stick to your skin care and hair care and you will be more and more charming. So you can choose some beauty appliance to achieve better personal care effect. From the data, we can know that the nano sprayer, shaver, and U-shaped pillow is very popular among the young.

Last but not least, a hammock or picnic mat can bring more happiness for you, you can use them in the garden or park, as well as go to the beach in the future. China Division are convinced that all of us will take off the mask and enjoy more pleasant time in the near future.

Story Sharing Day——How did Client B Benefit from Dropshipping?

We are glad to find that many customers are interested in our last story sharing. So we prepared another one for you.

In early 2018, client initiated a crowdfunding project on Indiegogo. Five months later, since the rewards were almost ready, client B looked for a partner to deliver the rewards to each backer. So ChinaDivision got the request from client B. According to the order details, ChinaDivision quickly sorted out delivery information of all backers, classified orders by country, and worked out the optimal shipping cost to satisfy the needs of client B. Due to the huge quantity of rewards, instead of directly shipping the rewards to backers, the manufacturer delivered the rewards to the warehouse of ChinaDivision, which helped client B save much money on shipping.

After receiving the rewards, China Division helped client B take care of assembly work and customized packing materials with logo so that the backers can easily recognize the rewards at the time of receiving the parcels. China Division completed packing rewards and delivered more than one thousand orders in a day. China Division was appraised by client B for the outstanding dropshipping performance. 

Do you like this story? Your feedback will be highly appreciated if you can share it with us.

How to use Drop-shipping effectively?

Drop-shipping efficiency plays an important role in COVID-19. Both the e-commerce seller and the warehouse want to use drop-shipping effectively, so it is time to find an available way.

Before setting the goal of improving drop-shipping efficiency, we need to figure out what people pay attention to. For example, some Amazon sellers want to know what is the cheapest shipping to Canada. Shipping discount offered by the order fulfillment warehouse brings the best solution? In fact, it’s not enough.

According to the customer’s feedback of China Division, most clients are concerned with price, delivery and service. Therefore, we proposed feasible order fulfillment optimization plan on last summary meeting. Here we share it with you:

  • Offer Competitive Price

China Division has a strict and thoughtful price accounting system, providing a competitive price for every customer. (More details had been showed in this blog: https://blog.chinadivision.com/important-factors-of-drop-shipping-price/)

In a word, our price is based on the market research and warehouse situation, you can also share your view with your account manager for better cooperation.

  • Time-based Delivery

China Division will make clear schedule of the order fulfillment, making every item and shipping details in an orderly way. What I need to mention is that one of my workmates will set memos and alarm clocks to remind him to fulfill the order. What a hardworking and dedicated colleague, isn’t it?

  • Professional Customer Service Center

In addition to the sales and order management department, China Division creates a professional and experienced team of customer service. All the new colleague will be given a training about customer communication before they start to work, which covers daily calling, package tracking, after-sales problem solving, etc.

Finally, regular summary is a necessary in China Division, take the weekly meeting as an example, everybody can share their opinion with others, as well as receiving the feedback from the participants. In this way, every workmate can find their value in China Division. What’s more, both individuals and departments can benefit from it. Therefore, we can create better warehousing performance for the e-commerce sellers.

A Story about Client A and Dropshipper China Division

Considering that today is Friday, let’s enjoy a story about our customer, instead of a long blog.

Client A had its own brand and physical stores. At the beginning of 2018, they decided to expand their online e-commerce market to the whole world. In preparation for online sale, client A took the advice from China Division and finally worked out an appropriate sales model and built its own website.

By means of good communication and analysis, China Division assisted client A sourcing products in China according to target prices. Once the goods arrived, China Division took care of quality inspection, quantity check, return & replacement, and warehousing, and uploaded the details of the goods for client A’s reference.

Client A had a wide range of products. China Division customized an exclusive logistics solution to flexibly select delivery channels and helped client A fulfill the orders in the most cost-effective and fastest way. In addition, China Division kept updating order data every month which helped client A have a better understanding of its market condition. Knowing the top-selling products in different countries and regions, client A was able to timely adjust its marketing strategy.

Over the past two years, China Division has maintained close cooperation with client A and has witnessed the success of client A’s online sale model together with its booming offline business.

How Does China Division Avoid Drop-shipping Mistakes?

It is a fact that no one wants to be obsessed with mistakes, so does China Division, a leading order fulfillment company in China. But the question is how to avoid mistakes in advance, or how to avoid making the same mistake. Therefore, we have this sharing about the mistake avoidance method.

  • Advanced Order Processing System

China Division developed a swift order fulfillment system to help you manage your e-commerce processes right from the warehouse to your customer’s hand. Each parcel needs to be scanned when shipping out of the warehouse, which is efficient to reduces the error rate. Beside, we will arrange specific customer service team for better cooperation, so you will not be worried about the poor communication or misunderstanding.

  • Classified Inventory Storage

Good classification is a helpful choice for saving time and space. For example, compared to the messy refrigerator, it is easier to find your food from the sorted refrigerator mezzanine, and it is hard to damage the preserved food. The same goes for warehouse management. According to customers and product types, we partition the warehouse management. In this way, both our customers and out warehouse colleagues can find and manage the item easily.

  • Clear Time Management before Shipping

Time is money, all the e-commerce sellers know the significance of time management. What’s more, lack of shipping times will hurt our sales more than long shipping times, so we will make clear schedule before picking, packing and shipping.

  • Automated Item Location System

In order to find the exact warehousing place of a item, China Division has created a good partnership with many platforms(Amazon, Shopify, Woocommerce, etc.) by API to create orders and to synchronize tracking number automatically.