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Today’s shoppers want the convenience of buying online with the gratification of getting their orders ASAP. And you can’t blame them. Giants like Amazon and Walmart have set the norm for the eCommerce industry by offering their customers two-day and even same-day shipping options.
As a small retailer, you risk losing your customers if you can’t guarantee their ‘inalienable right’ to expedited delivery. Studies have shown that 26% of online shoppers abandon their carts due to slow shipping, and 53% consider delivery time an essential factor when evaluating their orders.
The most intriguing part of the puzzle is that customers expect expedited shipping but still crave free deliveries, with 75% of U.S. shoppers expecting free shipping. Considering their lower order volume and lack of fulfillment infrastructure, the big question is, can small businesses compete with the giants?
Well, the answer isn’t straightforward. But we can tell you it’s not impossible. In this article, we let you in on the most important things you need to know about two-day shipping and how you can offer it to your customers.
When you offer two-day shipping, you deliver consumer purchases within two days of the order. Today’s online consumers tend to be impatient, so two-day shipping is essential to your eCommerce strategy.
How can you benefit from two-day deliveries? Here are some ways two-day delivery can provide a business advantage:
Many customers expect two-day shipping ability from all online businesses thanks to Amazon. Whether you like it or not, two-day shipping is a must. If customers don’t receive their items within two days, they may not return to your business again.
On the flip side, consistently delivering within two days shows that you’re a reliable online business. If you keep fulfilling your two-day delivery promises, customers are more likely to continue shopping at your business.
There's something undeniably thrilling about waiting for a package to arrive in the mail, especially when it comes to last-minute holiday gifts or items that just can't wait. We've all experienced that sense of urgency, and it's no wonder that slow delivery speeds can be a deal breaker for many eCommerce platform users.
In fact, a snail-paced shipping process can lead to customers abandoning their carts, causing businesses to lose out on potential sales. However, the simple solution of offering two-day delivery can work wonders. This speedy promise not only eases the minds of those eager customers but also makes them much more likely to hit that "purchase" button, knowing that their precious items will be in their hands in just a few days.
Fast shipping speed is marketable. If you promise two-day delivery and consistently fulfill it, you can make it a selling point. Writing something like “free two-day delivery” on your marketing materials can attract attention and increase clicks. More clicks mean more people visit your online store, potentially increasing your sales.
Depending on the seller, two-day delivery can be two business days or two full days. And the time can start counting from either the order cutoff time or the checkout time.
For example, Walmart uses two business days and an order cutoff time model. So, if a buyer places an order after the cutoff time on Friday, they can expect to receive it on or before Tuesday since Saturday and Sunday are not business days. On the other hand, some other companies start counting the days once the order is packed, not minding whether it’s a business day.
Whichever the model, deliveries eligible for two-day shipping usually vary between two shipping methods: air and ground. Each shipping method has different advantages and disadvantages, so let’s dive in:
Air shipping entails using an airplane or jet to transport packages from the warehouse or fulfillment center to the customer. It’s mainly used for international shipping or shipping to customers far from fulfillment centers. Of course, airborne shipping costs can be pretty steep, making it almost impossible to offer free two-day shipping to customers.
Ground shipping uses vans, trucks, or cars to move orders from the fulfillment center to the customer’s doorstep. You may use your delivery vehicles or rely on an external shipping carrier, depending on your logistics approach. Ground shipping is easily the cheapest delivery model, and you can offer free two-day delivery without hurting your bottom line.
It's a harsh reality for many businesses that ground shipping isn't suitable for delivering orders to remote areas far from fulfillment hubs. If you don’t have fulfillment centers spread across many regions, offering 2-day delivery via ground shipping can be next to impossible.
A report from EtailInsights revealed that there are 2.1 million online retailers in the United States alone, and this number is expected to grow in the coming years. If anything, this stat tells you that eCommerce businesses have become just as competitive as brick-and-mortar retail, if not more. You’ll need to stay on top of your game to thrive in the space as a business owner. Here are a few ways two-day shipping can boost your eCommerce business:
On average, online customers feel three days is an acceptable waiting time for an order. Once your delivery time exceeds three days, your customers will likely leave you for businesses that offer faster delivery. However, you’ll have a better chance of retaining your customers and expanding your customer base if you offer two-day shipping.
Your ads become more attention-grabbing if you include a promise of expedited shipping. Add tags and banners to all your ad copy, including emails, paid ads, and social media posts. When you do this, get ready for a considerably improved conversion rate and more sales.
Customers who get their orders on time will likely make a repeat purchase. Moreover, you can offer 2-day shipping as part of a paid membership program like Amazon Prime to offset the costs of faster deliveries.
Many online shoppers now regard Amazon’s free two-day shipping as standard. According to Metapack’s report, 27% of shoppers will choose the retailer with the best delivery option. Unless you sell an exclusive product, you’ll likely lose customers to the eCommerce giants.
Yes, offering two-day shipping to as many customers as possible would be best. It’s the easiest way to reduce cart abandonment and order cancellation rates. However, two-day shipping for all orders can be detrimental to business, especially if you plan to keep the shipping costs low.
If expedited delivery costs are too high, you can offer two-day shipping alongside other options and leave the decision to the customer. Another helpful strategy is restricting the service to a select group of customers like Amazon Prime.
The cost of shipping within two days depends on several factors. Here are some things that affect the price of a 2-day shipping program.
Also, note that the cost that a seller charges customers for two-day shipping can vary because of factors like fulfillment fees and channel costs.
Fulfillment fees are the cost that a company or individual seller may incur for packing, processing orders, stocking inventory, and shipping. These fulfillment fees, in turn, can also vary based on pricing models, orders placed, and additional services like individual packaging.
This explains why when you order an item for two-day shipping from an online marketplace, the cost may be more or less than ordering the same item directly from the item manufacturer’s site.
Two-day shipping doesn’t come without extra costs. If you’re not careful, you could lose all the gains you’ll make from offering two-day shipping if the costs eat too deep into your bottom line. And transferring the total cost to customers isn’t a viable option. As mentioned earlier, your customers want their delivery fast and free! The best you can do is to keep the shipping cost as low as possible. Here are some tips that can help:
Ground shipping is the easiest way to keep shipping costs low while delivering fast. However, it can only work if the fulfillment center is close to the customer. It's essential to know your customers well. That way, choosing locations near them will be a breeze and save you money in the long run. You could even offer one-day or overnight shipping to customers living closer to your fulfillment center.
Even with Amazon’s logistics prowess, only Amazon Prime members enjoy guaranteed two-day shipping. You can also work on a similar model for your eCommerce business. When you offer this perk to customers on a membership plan, more customers are likely to join, and the subscription cost may offset some shipping costs.
Operating from just one warehouse or fulfillment center will severely restrict your two-day delivery capabilities. If you cannot manage multiple fulfillment centers, you should consider partnering with a 3PL company. You’ll be reducing the transit time of customers’ orders and ensuring faster delivery.
Below are a few shipping methods you can use if you’re planning to start two-day shipping:
If you handle fulfillment in-house, you’ll have to take the goods to your preferred carrier. The top carriers, such as FedEx and USPS, have two-day shipping plans you can subscribe to. If your business is big enough, you could even get them to pick the packages up from your warehouse with shipping discounts.
Online sellers that choose this option store their inventory at the third-party logistics company’s fulfillment center, and the company ensures it’s shipped on time. This arrangement allows sellers to leverage distributed warehouses and reduce shipping costs. You get to retain customer information since all orders will pass through.
If you’re a small business looking for affordable, fast shipping providers, these are some of the best options you can choose from.
If you’re considering going for flat-rate shipping, USPS has pre-made boxes in sizes ranging from small to large, each with a different price. If your items fit the pre-made boxes, you may consider offering them as a parcel service option.
Because of its pre-made box fees, flat-rate shipping through USPS will also help you accurately estimate your shipping prices ahead of time. This means you won’t be surprised by extra fees and end up losing money.
USPS is also a top choice for those doing in-house fulfillment for their orders. If you have small order volumes, USPS offers the best value for money as a shipping option. Some services like Priority Mail Express have a money-back guarantee if your products don’t arrive on time.
USPS offers free pickup services from your home or office, with tracking services and up to $50 insurance for most parcels. There are also no surcharges for Saturday deliveries, rural or resident deliveries, or fuel.
For small businesses sending large packages that weigh 70 pounds or more, UPS is the most cost-effective option. Unlike USPS, this is because it doesn’t have a size limit for its services.
UPS can pick up your package from your office or warehouse for an additional fee. It also has two-day and three-day delivery shipments, guaranteed day ground delivery, and international shipping services to over 220 countries and territories.
While DHL is smaller than UPS, FedEx, and USPS, it’s one of the best options for international shipping. DHL can ship your customers’ orders to 220 countries and territories. It also has an easy-to-use quote calculator that can help you choose the best shipping rate and delivery times for orders, depending on your chosen service.
DHL typically estimates costs based on the destination country and your items’ dimensional weight. Fragile or costly items can get either cargo or freight shipping insurance, depending on which applies to the order. For those needing help with customs clearance, DHL also has brokerage offices worldwide.
Do your customers need 1-3 delivery speeds? FedEx is one of the most reliable choices for businesses where prime delivery speeds are the highest priority. FedEx has overnight shipping, same-day shipping for cross-country deliveries, and two to three-day shipping.
FedEx Express may have fewer locations than UPS, but it’s still reasonably easy to find a location for dropping off shipments. FedEx Express also offers priority international deliveries, tracking, and insurance for shipments up to $100. This gives international customers the peace of mind to place orders from your small business.
Below are answers to some frequently asked questions about two-day shipping:
Second-day shipping is when a company or seller ships the order within two days of it being placed. It is different from second-day delivery, which means that the order must reach the customer within two days of being placed.
Note that this should also be distinct from 2-day shipping, which typically means the order should reach the customer within two business days of shipment out of the fulfillment center.
2-day shipping doesn’t mean the customer will receive the package within 48 hours of placing the order – instead, it means they’ll receive it within two business days once the item is shipped to them.
For instance, fulfillment center workers must pick, pack and label an order before it’s ready for shipping. So, if the customer places the order late, it may not be possible to ship the order on that day. In such cases, the two days will start counting the next day. For companies that work only on weekdays, the two days will not begin counting until Monday if the order is placed on Friday evening.
If the seller drops off the package at the post office, two-day shipping will mean two days after the seller drops off the package. In some contexts, two-day shipping may suggest that the seller will get the order in the mail within two days. If you’re ever in doubt, you should ask your seller or service provider to explain their interpretation of two-day shipping.
The Amazon Prime Effect refers to the two-day shipping service that most online customers now expect. Amazon set the expedited delivery standard via its Amazon Prime service. Prime customers typically get their goods within two days of placing the order.
Two-day shipping isn’t always guaranteed because it hinges on many factors, including the shipping carrier, days of operation, cutoff time, weather, and additional factors. Many online sellers only use two days as a delivery estimate. However, some sellers are bold enough to provide a money-back guarantee if your order does not arrive within two days.
Even in cases where the seller provides a money-back guarantee, they still leave room for mishaps such as missing or stolen packages or lousy weather. You shouldn’t hastily provide guarantees around two-day shipping as an online seller. However, you should try to uphold your promises as much as possible.
The main benefit of offering free two-day shipping is attracting many customers. However, you should know someone will have to pay for the free shipping and supplies, and that person is you.
If it doesn’t make sense for your margins, you could be better off dropping the idea. Or, better still, offer it to a small subset of customers that may exceed a minimum purchase threshold or have subscribed to a particular service.
Most small businesses need help handling the complexities of order fulfillment and expedited shipping. Thus, outsourcing your fulfillment services to a specialist company or another company with great logistics prowess makes excellent sense. Below are a few outsourcing options you can consider.
Fulfillment By Amazon is available to a select group of Amazon sellers. To become FBA-eligible, you have to meet some preset criteria. Once you meet the requirements, your customers can expect guaranteed two-day shipping and could even upgrade to one-day shipping for a small fee.
The downside to Amazon FBA is that the service is only available for orders placed on the Amazon marketplace. Unfortunately, you won’t have the contact information to remarket to your customers. Amazon could even use your order information to build competing products; there’s nothing you can do about it.
Furthermore, you’ll incur considerable seller fees, despite Amazon using its branded packages for shipping. In essence, you have little control over the customer experience, and shoppers are likely to remember that they bought the item from Amazon than from you. In summary, it’s not a great option to boost brand visibility.
ShipHero is a third-party logistics (3PL) company with fulfillment centers nationwide, lowering last-mile delivery costs. We help sellers fulfill orders from business websites, third-party marketplaces, and other sales channels.
When you partner with ShipHero, you’ll get guaranteed two-day shipping that doesn’t come with all the negatives of FBA. You’re also likely to pay less on deliveries, and you can distribute your inventory across the numerous fulfillment centers in the country to save on shipping costs. If you want to scale your fulfillment operations and gain access to powerful 3PL software without breaking the bank, there’s hardly any better option than partnering with ShipHero.
Offering fast and cheap delivery options is now central to attracting and retaining online customers. Unfortunately, many small businesses don’t have the logistics capabilities necessary to match the expedited delivery services provided by eCommerce giants like Amazon, Walmart, and eBay.
Outsourcing your fulfillment needs to a 3PL company is the best way to remain competitive. If you can partner with the right logistics company, you can offer guaranteed two-day shipping and enjoy all the benefits of it.
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A 3PL Warehouse Management System (WMS) is a software solution that helps companies manage and optimize their warehouse operations. It provides a centralized platform for handling tasks such as inventory management, order fulfillment, shipping, and receiving.
It’s an essential tool for third-party logistics providers that lets them efficiently manage their clients' warehouse operations.
A key challenge third-party logistics providers face is managing the vast amount of inventory stored in their warehouses. The 3PL Warehouse Management System addresses this challenge by providing a comprehensive set of tools and functionalities to effectively manage and control warehouse operations.
At its core, the 3PL WMS is a software application that integrates with the existing warehouse infrastructure and automates various processes like inventory management, order fulfillment, and shipping. It provides real-time visibility into inventory levels. And it helps logistics providers optimize storage space and ensure accurate stock levels.
Moreover, the 3PL WMS enables efficient order processing by automating tasks like order picking, packing, and labeling. It provides warehouse staff with detailed instructions on how to fulfill each order, and this minimizes errors while improving overall productivity.
Another key feature of the 3PL WMS is its ability to track and trace goods throughout the warehouse. By using barcode scanning or RFID technology, the system can accurately track the movement of inventory from the moment it arrives at the warehouse to the moment it leaves for delivery.
Furthermore, the 3PL WMS offers advanced reporting and analytics capabilities. They can generate reports on key performance indicators like order accuracy, on-time delivery, and inventory turnover. This helps businesses identify areas for improvement.
In addition to these core functionalities, the 3PL WMS can be customized to meet the specific needs of different industries and clients. For example, it can support temperature-controlled storage for perishable goods or provide specialized picking algorithms for eCommerce fulfillment.
In conclusion, the 3PL Warehouse Management System is a powerful tool that enables third-party logistics providers to efficiently manage their clients' warehouse operations. By automating key processes and providing real-time visibility into inventory, the system helps improve productivity, accuracy, and customer satisfaction. It’s an indispensable asset for logistics providers in today's complex and competitive business environment.
To further understand the scope and benefits of third-party logistics, explore our detailed guide on 3PL services, which highlights how these services streamline operations and enhance efficiency.
Implementing a 3PL Warehouse Management System can bring numerous benefits to a company.
Firstly, it provides real-time visibility into stock levels and locations to reduce the risk of stockouts and minimize excess inventory.
Secondly, a 3PL WMS improves order fulfillment efficiency by automating processes like order picking and packing. This leads to faster order processing times and improved customer satisfaction.
Additionally, a 3PL Warehouse Management System lets companies optimize their warehouse space utilization. By providing insights into optimal storage locations and recommending efficient picking routes, it maximizes the storage capacity and minimizes unnecessary movement.
Lastly, a 3PL WMS enhances supply chain visibility by providing real-time tracking and reporting tools. This lets companies monitor the flow of goods, identify bottlenecks, and make data-driven decisions to improve overall efficiency.
Ecommerce businesses require specialized inventory management solutions to meet the dynamic demands of online retail. Learn more about ecommerce inventory management software that complements 3PL WMS for seamless integration and enhanced efficiency.
A good 3PL Warehouse Management System offers a range of features to support warehouse operations. These features include:
Choosing the right inventory management software is crucial for optimizing warehouse operations. Discover the best inventory management software options that can seamlessly integrate with 3PL WMS to provide comprehensive inventory control.
When considering a 3PL Warehouse Management System, it's important to assess the specific requirements of your business. Some key considerations include:
A key advantage of a 3PL Warehouse Management System is real-time visibility into warehouse operations.
Companies can access up-to-date information on inventory levels, order statuses, and overall performance at any time so businesses can quickly identify and address bottlenecks.
Following these steps will help you carefully plan and integrate a 3PL Warehouse Management System:
When choosing a 3PL Warehouse Management System, it's important to consider the following factors:
The cost of a 3PL Warehouse Management System can vary depending on factors like the size of your business, the features you want, and the vendor you choose. Some vendors offer pricing models based on the number of users or the volume of goods processed. Request quotes from different vendors and consider the long-term ROI when evaluating the cost of a 3PL WMS.
A 3PL WMS helps companies manage and optimize warehouse operations, including inventory management, order fulfillment, and reporting.
A 3PL Warehouse Management System can improve inventory accuracy, order fulfillment efficiency, warehouse space utilization, and supply chain visibility.
Key features include inventory tracking and management, order management, picking and packing optimization, real-time reporting tools, and system integration capabilities.
The cost varies depending on factors like the size of the business, desired features, and the vendor chosen. It's important to request quotes and consider long-term ROI.
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If you're looking for the best 3PL companies in Canada, you've come to the right place. This article will introduce you to some of the top players in the industry and provide valuable insights into the world of third-party logistics in Canada.
Before going into the specifics, it’s important to understand what third-party logistics or 3PL is.
In simple terms, 3PL refers to the outsourcing of supply chain management functions to a specialized company. These companies handle various aspects of logistics like transportation, warehousing, and distribution on behalf of their clients.
By entrusting their logistics operations to a 3PL provider, businesses can focus on their core competencies while benefiting from the expertise and resources of the 3PL company. It's a win-win situation that has gained popularity across industries.
In the transportation arena, 3PL providers play a crucial role ensuring the smooth movement of goods from one location to another. They have extensive networks of carriers and can negotiate favorable rates that save their clients money. Additionally, 3PL companies have the expertise to optimize routes, track shipments in real-time, and handle any unexpected issues that may arise during transit.
Warehousing is another area where 3PL providers excel. Most have strategically located warehouses equipped with state-of-the-art technology and systems to efficiently store and manage inventory. This helps businesses reduce their warehousing costs and benefit from extra scalability and flexibility. With advanced inventory management systems, businesses have real-time visibility into their stock levels, ensuring timely replenishment and minimizing stockouts.
And beyond transportation and warehousing, 3PL provider services can include order fulfillment, packaging, labeling, and even customer support. By leveraging these additional services, businesses can enhance their overall supply chain operations and improve customer satisfaction.
A key advantage of partnering with a 3PL provider is access to their expertise and industry knowledge. 3PL companies are always up to date on the latest trends, regulations, and best practices in logistics. They can provide valuable insights and recommendations to optimize supply chain processes across many industries.
Another benefit of working with a 3PL provider is scalability. With a 3PL partner, businesses can easily scale up or down their logistics operations without significant investments in infrastructure or resources. They can adapt quickly to market demands and seize new opportunities.
In conclusion, third-party logistics, or 3PL is the outsourcing of supply chain management functions to specialized companies. These companies handle transportation, warehousing, and distribution on behalf of their clients, letting businesses focus on their core competencies. 3PL providers offer expertise, cost savings, scalability, and value-added services, making them an attractive option for businesses across industries.
To have a better understanding of how 3PL companies operate and the diversity of services they offer, consider reading our comprehensive overview of 3PL companies, which provides insights into selecting the right partner for your logistics needs.
In Canada, the 3PL market is vibrant and competitive. With its vast geographical area and robust trade relationships, the country presents numerous opportunities for logistics companies.
Canadian 3PL providers offer a wide range of services, catering to industries like retail, e-commerce, manufacturing, and healthcare. From managing inventory and order fulfillment to overseeing transportation networks, these companies play a vital role in the supply chains of businesses across the country.
The 3PL market in Canada is constantly evolving to meet the changing demands of businesses. As companies seek to optimize their supply chains and provide seamless customer experiences, the role of 3PL providers becomes increasingly important.
A Key factor driving this growth is the rapid expansion of e-commerce. As more and more Canadians turn to online shopping, businesses need efficient and reliable logistics solutions to fulfill customer orders quickly and accurately.
Canadian 3PL companies offer a comprehensive range of services to meet the specific needs of their clients. Common services include:
These services can be tailored to suit small startups, large corporations, and everything in between. By leveraging the expertise of 3PL providers, companies can streamline their operations and gain a competitive edge in the market.
To explore the specific services provided by third-party logistics providers and how they can transform your supply chain, explore our detailed discussion on 3PL services, offering a closer look at how these services streamline operations for businesses of all sizes.
Partnering with a 3PL company in Canada offers several benefits for businesses:
Overall, partnering with a 3PL company in Canada is transformative for businesses, offering a pathway to reduce operational costs, enhance efficiency, achieve scalability, maintain a focus on core business areas, and leverage expert insights.
These combined benefits create a formidable foundation for businesses to thrive and expand in the highly competitive Canadian marketplace.
Small and medium-sized enterprises seeking to capitalize on these benefits should explore our detailed guide on 3PL for small businesses. This resource is tailored to help smaller companies understand how to effectively utilize 3PL partnerships to enhance their logistics operations and support growth.
Several 3PL companies in Canada stand out for their industry expertise, reliability, and customer satisfaction::
Each of these 3PL companies in Canada brings its unique strengths to the table, from extensive national networks and fast delivery capabilities to specialized services and global reach. Choosing the right 3PL partner depends on a business’s specific logistics needs, growth goals, and the strategic value the 3PL can provide in facilitating efficient and effective supply chain operations.
If you're considering partnering with a 3PL company in Canada, here are a few steps to get started:
In conclusion, the best 3PL companies in Canada offer a range of services to optimize supply chains and fulfill the unique logistics needs of businesses. By partnering with a reputable 3PL provider, businesses can unlock new efficiencies, lower costs, and gain a competitive advantage in the Canadian market.
The cost of 3PL services in Canada varies based on factors such as the scope of services required, volume of shipments, and industry-specific needs. It's best to request quotes from multiple providers to get an accurate estimate.
Absolutely. 3PL providers offer scalable solutions, making them suitable for businesses of all sizes. Small businesses can leverage the expertise and resources of 3PL companies to optimize their logistics operations and compete more effectively in the market.
Choosing the right 3PL partner requires careful consideration. Look for companies with experience in your industry, a strong track record, and the ability to meet your specific requirements. Conducting thorough evaluations and interviews will help you gauge compatibility and make an informed decision.
Yes, many 3PL providers in Canada can handle international logistics. They can handle customs clearance, freight forwarding, and global transportation, ensuring a smooth flow of goods across borders.
Absolutely. Many 3PL companies in Canada specialize in niche industries, such as healthcare and pharmaceuticals. They have the necessary certifications, infrastructure, and experience to ensure compliance with industry regulations and safely handle critical goods.
Many businesses turn to third-party logistics (3PL) companies for their shipping, warehousing, and fulfillment needs, but it can be overwhelming to choose the right 3PL provider for your business with so many available options. Any of these five 3PL companies would be a great place to start:
If you know what a 3PL is and why you might need it, then you have five places to start your search. If you don’t know much about 3PLs, keep reading.
Third-party logistics refers to the outsourcing of logistics activities to a specialized company. These companies handle tasks such as transportation, warehousing, inventory management, and order fulfillment on behalf of their clients. By partnering with a 3PL provider, businesses can streamline their supply chain processes and focus on their core competencies.3PL companies offer a wide range of transportation services. They generally have a network of carriers and can negotiate favorable rates for shipping goods. By road, air, rail, or sea, these companies have the expertise to ensure that products reach their destination efficiently and on time. They also handle all the necessary documentation and customs clearance, taking the burden off the businesses.Warehousing is another crucial aspect of logistics that 3PL companies excel in. They have strategically located warehouses equipped with the latest technology and infrastructure to store goods safely and efficiently. These warehouses are often equipped with advanced inventory management systems that allow businesses to track their inventory in real-time. This ensures that businesses always have visibility into their stock levels and can fulfill customer orders promptly.Inventory management is a complex task that requires careful planning and execution. 3PL companies have dedicated teams that specialize in managing inventory. They use sophisticated software systems to track stock levels, monitor expiration dates, and optimize storage space. By outsourcing this function to a 3PL provider, businesses can minimize the risk of stockouts and reduce carrying costs.Order fulfillment is the final step in the logistics process, and 3PL companies play a crucial role in ensuring orders get delivered accurately and on time. 3PL companies often have efficient order processing systems in place to handle everything from picking and packing to labeling and shipping. With their expertise, businesses can provide their customers with a seamless and reliable order fulfillment experience.Overall, partnering with a 3PL provider offers numerous benefits for businesses. It lets the business tap into the expertise and resources of a specialized logistics company, optimize their supply chain, and improve customer satisfaction. By outsourcing logistics activities, businesses can focus on their core competencies and gain a competitive edge in the market.If you're new to the concept of third-party logistics and curious about the breadth of services they offer, our comprehensive overview on 3PL services breaks down everything from warehousing to order fulfillment, equipping you with the knowledge to make informed decisions.
3PL companies come in all shapes and sizes, offering a wide range of services to cater to different business needs. While some 3PL providers specialize in specific industries or regions, others offer comprehensive solutions that can be tailored to any business. The top 5 best 3PL companies on our list have proven track records, extensive networks, and a reputation for delivering exceptional results.
eCommerce businesses, retailers, manufacturers, and distributors are among the industries that commonly use 3PL providers. Startups and small businesses often choose 3PL companies to handle their logistics needs so they themselves can focus on growth and core competencies. Larger corporations also benefit from outsourcing logistics tasks; they can streamline their operations and gain access to specialized expertise. Startups and small businesses often face unique challenges in logistics and supply chain management. Dive deeper into how a 3PL can be a game-changer for small businesses by visiting our detailed guide on 3PL services for small businesses, offering insights to streamline your operations and focus on growth.
The top 5 best 3PL companies mentioned above excel in certain core competencies that set them apart from their competitors. These core competencies include:
When choosing a 3PL provider, it is crucial to consider their fulfillment center locations and warehousing capabilities. The top 5 best 3PLs above have strategically located warehouses across the country, allowing for faster and more cost-effective shipping. These companies have invested in state-of-the-art warehousing facilities that prioritize efficiency, security, and scalability.
eCommerce businesses rely heavily on effective supply chain management to ensure timely order fulfillment. The top 5 best 3PL companies integrate seamlessly with popular eCommerce platforms such as Shopify, WooCommerce, and Amazon. They also support multiple sales channels, including marketplaces like eBay and social media platforms. By leveraging the capabilities of these 3PL providers, eCommerce businesses can enhance their customer experience and boost sales.
When selecting a 3PL provider, consider their track record of customer satisfaction. The top 5 best 3PL companies have a proven history of delivering a high level of service and exceeding customer expectations. They have earned positive reviews and testimonials from their clients, showcasing their commitment to excellence.
If you decide to partner with a 3PL provider, the onboarding process is generally straightforward. It typically involves:
By following these steps, you can start leveraging the benefits of 3PL services and optimizing your supply chain management.
While selecting a 3PL provider, avoid these common mistakes that can lead to poor service or unsatisfactory results:
By being aware of these common mistakes, you can make an informed decision and select a reliable and suitable 3PL provider.
The cost of 3PL services can vary depending on the volume of shipments, storage requirements, and the complexity of logistics operations. 3PL providers typically use a pricing structure that includes fixed costs like warehousing fees, and variable costs based on the services used. Carefully review the pricing details provided by potential 3PL providers so you know it aligns with your budget.
In conclusion, partnering with a reputable 3PL company can significantly optimize your supply chain and enhance your overall business operations. The top 5 best 3PL companies stand out due to their extensive networks, advanced technology, superior customer service, and customizable solutions. When choosing a 3PL provider, consider factors such as industry expertise, technology capabilities, and customer satisfaction. By avoiding common mistakes and understanding the pricing structure, you can make an informed decision and select the right 3PL provider for your business.
3PL stands for Third-Party Logistics. It refers to the outsourcing of logistics and distribution by companies to third-party firms that specialize in warehousing, transportation, and fulfillment services. These third-party providers manage all or a significant portion of a company's logistics functions, allowing businesses to focus on other areas without the need for extensive logistics infrastructure or expertise.
While it is not mandatory, utilizing a 3PL company can provide numerous benefits, particularly for businesses that require efficient supply chain management.
Consider factors such as reputation, industry expertise, technology capabilities, and customer satisfaction when selecting a 3PL provider. Additionally, ensure their services align with your specific business needs.
While your team is still walking aisles, your competitors are cutting pick times in half with automation. Guess who’s shipping faster and stealing market share?
Automation isn't the future anymore. It's the present. For growing eCommerce brands or fulfillment centers under pressure to deliver faster, cheaper, and more accurately, automated warehouse picking systems are no longer a luxury. They're a necessity.
In this guide, you'll learn how automated picking systems work, the types available, how to choose the right one, and how ShipHero can help you streamline fulfillment processes with confidence.
Automated warehouse picking systems use software, robotics, and real-time data to locate, retrieve, and prepare items for shipment, without relying solely on human labor. Instead of employees walking long distances and manually selecting items, automated systems bring items to workers or direct them with tools like lights, voice commands, or mobile robots.
For example, in the eCommerce space, brands use Goods-to-Person (GTP) systems to increase operational efficiency and efficiently handle large catalogs of SKUs. In retail, where seasonal order surges can overwhelm manual processes, automated solutions help companies double their picking speed and maintain consistent fulfillment even during peak demand.
The process is surprisingly seamless:
This flow is driven by smart software that integrates with warehouse management systems and supports key warehouse processes, including picking, packing, and tracking real-time inventory.
Want a deeper look at the tech behind it? Read this guide on warehouse automation software.
There’s no universal solution for warehouse automation. The best picking system depends on your space, order volume, and the variety of products you offer. Some work better for high-SKU, high-volume operations; others are ideal for smaller, more focused setups. Below, we break down the top systems and which warehouse types they’re best suited for.
GTP systems deliver inventory directly to a stationary picker, eliminating walking marathons. This setup enhances inventory management, reduces physical strain on workers, and improves worker safety.
It also optimizes order accuracy by minimizing human error. By minimizing walking time and keeping pickers in one place, GTP systems significantly boost pick rates while also cutting down on labor fatigue.
Pick-to-Light is an automated solution that uses LED light bars to guide workers to the right location for picking items, enhancing accuracy, speed, and efficiency while reducing errors.
When paired with Pack-to-Light and Receive-to-Light, your entire workflow is streamlined. Pack-to-Light ensures precise packing, while Receive-to-Light optimizes inventory storage and retrieval. Together, these technologies simplify inventory management, reduce labor costs, and accelerate fulfillment.
At ShipHero, we offer all three solutions, Pick-to-Light, Pack-to-Light, and Receive-to-Light, under one roof, seamlessly integrating with your existing systems to optimize warehouse operations. The combination can help boost efficiency by 20% while also cutting costs by up to 30% for batches of 10 to 30 orders.
Pickers wear headsets and follow voice commands to locate items, like a GPS for your warehouse. This hands-free approach automates repetitive tasks, shortens training time, and reduces picking errors, even in noisy environments. It also improves accuracy, even in noisy environments where traditional methods might fall short.
AMRs, or autonomous mobile robots, navigate the warehouse floor independently, delivering items or bins to human workers or packing stations.
Unlike fixed systems, AMRs offer greater flexibility and adapt to varying warehouse sizes, support scalable operations, and offer the flexibility to grow without major infrastructure changes. They’re also highly scalable, which makes them a smart choice for warehouses looking to grow or adjust operations without major infrastructure changes.
These are high-tech racking systems equipped with robotic cranes or shuttles that automatically store and retrieve inventory. They’re especially well-suited for large warehouses with high inventory turnover, where speed and space efficiency are critical.
Businesses that need to maximize vertical storage find these systems invaluable, and industries such as pharmaceuticals, automotive, and electronics often benefit the most from their precision and scalability.
Still not convinced? The real-world benefits speak for themselves. Automation significantly reduces human error, particularly in fast-paced warehouse environments where accuracy is crucial. It also speeds up fulfillment, often cutting pick times in half or more.
By streamlining operations, businesses can lower labor costs by either reducing headcount or reassigning team members to more valuable tasks.
By transitioning to automation, companies often see dramatic improvements in efficiency and cost savings. For example, automation can reduce warehouse labor costs by up to 60%, allowing businesses to reallocate resources and scale more effectively.
It’s not always smooth sailing when implementing automated picking systems. One of the biggest hurdles is the high initial investment, as hardware, software, and integration can come with a steep upfront cost.
Staff training is another challenge, as teams need time to learn how to use the new technology effectively. There can also be short-term disruption; installation and onboarding may temporarily slow down operations. But the long-term gains are often worth it.
For example, James Enterprise struggled with paper-based picking and processing delays before switching to ShipHero’s Warehouse Management System.
The transition required workflow changes and staff training, but with proper planning, such as going paperless, reorganizing their layout, and utilizing smart pick paths, they boosted productivity by 38%. New hires cut their pick time from 55 to 34 seconds in just five days, proving that smart automation pays off.
Finding the right automated picking system starts with understanding your specific needs. Warehouse size plays a big role, as larger spaces often benefit most from solutions like AMRs or AS/RS that can cover more ground efficiently. If your business manages a high variety of SKUs, systems like GTP or voice picking can offer the flexibility and accuracy you need.
For those working with tighter budgets, starting with light-based or voice-guided systems can provide a solid foundation without breaking the bank. Regardless of your starting point, scalability is crucial; your system should be able to grow in tandem with your business. Partnering with ShipHero ensures you get expert, customized guidance and future-proof solutions designed specifically for your operation.
Implementing warehouse picking automation isn’t just about installing new tech; it’s about doing it strategically. To get the most out of your investment and avoid common pitfalls, follow these proven best practices:
Best Practices for Successful Warehouse Picking Automation
For example, Black Wolf Nation and its 3PL arm, ONE23 Fulfillment, partnered with ShipHero to scale their operations. By adopting ShipHero's warehouse management software, they increased their order volume from 10,000 to over 25,000 per month in less than a year. This strategic implementation allowed them to efficiently manage growth and expand into the 3PL space.
Most companies see a return on investment within 12 to 24 months, depending on the system and order volume.
Yes. Many automated systems are designed to be scalable and cost-effective, which makes them ideal for small warehouses. Solutions like Pick-to-Light and voice picking can start small and expand as your operation grows.
Yes. Advanced systems feature adjustable grippers, sensors, and packaging logic to safely handle delicate or irregularly shaped products.
Warehouse management systems make daily warehouse operations efficient. And wave planning is at the heart of it.
As part of the supply chain industry where efficiency is of utmost importance, the fast-paced environment of warehouse management requires every aspect of operations to work on schedule. This is where wave planning comes into play and brings efficiency to the table.
It integrates with warehouse management systems and streamlines end-to-end warehouse operations to meet customer expectations of fast shipping and real-time updates.
Wave planning batches orders for optimized picking routes, shipping, and priority. It supports operational workflows and integrates with warehouse wave picking strategies to maximize productivity, reduce errors, and improve overall daily warehouse output.
This turns warehouse operations into an organized process of handling and systematizing hundreds of orders a day.
Applying the best practices for wave management allows for maximum efficiency in managing daily warehouse operations. Start with these:
Not all orders need to be shipped at the same time. Some can wait, others can’t. Strategic planning means prioritizing orders based on shipping deadlines to ensure they are shipped out and delivered on time. This increases customer satisfaction and overall operational efficiency. To better understand the core workflows that make this strategy effective, explore how we have explained the six key warehouse processes.
Accessing real-time data allows you to monitor every wave that’s happening, from orders getting picked up to those that are delayed. This lets you take action accordingly, especially when spotting issues as they are happening.
Downtimes are red flags in wave management. They are equal to unproductivity and possible shipment delays, both affecting operations to meet quotas and customer satisfaction.
Reduce idle time in operations with these methods:
High-demand periods like holidays, promotions, and occasional spikes can cause chaos, especially if you don’t have a plan in place. That chaos can overwhelm your normal operations and lead to delays and unsatisfied customers.
Avoid this by ensuring scalability for peak periods with effective wave planning:
If you’re preparing your warehouse for high-volume fulfillment, it may be worth exploring how automated warehouse picking systems can make wave execution more efficient and adaptable.
Warehouses have different zones to which pickers are assigned.
Having specific picking zones gives structure to the picking process, making it easier to execute even through high-volume orders.Having defined picking zones helps:
Wave management gives you the flexibility to adapt quickly when an unexpected change occurs during operations.
A common issue often faced in wave management is the sudden changes in order volume. This disrupts the flow of current waves and may have an avalanche effect on the whole operation if not solved immediately.
Here’s how wave management adjusts operations to meet demand fluctuations:
A warehouse management system creates an overall plan that controls the flow of a warehouse's production. Using tools and automation, a WMS simplifies and streamlines wave management to execute warehouse operations from fulfillment to packing and delivery.
The main difference between wave planning and wave management is that the former is where the strategizing happens, while the latter is the execution and overseeing that the plan takes place.
Wave planning is the strategic part of grouping what orders should be fulfilled together, setting the time for wave releases, and adjusting them based on warehouse capacity and labor availability.
Wave management is the main operational part where the production happens. It tracks the real-time progress of wave execution to ensure things are running smoothly according to plan.
The main difference between digital and wholesale waves lies in their order size, wave planning, and operational goal. Due to their differences, each wave type requires different planning and strategy.
Digital waves service the B2C channel, are high in volume, and often have small, single-item orders that require urgent or same-day deliveries. The wave strategy used is frequent and short for flexibility. For this wave type, warehouse managers use WMS-integrated mobile devices for tech support
Meanwhile, wholesale waves are for bulk orders, often for retail distribution, resellers, or B2B supply chains. Wholesale waves have a lower order volume with large shipments and more flexible timelines.
Yes, it can be used if they have large volumes of orders per day, orders with time-blocked pickups, or group orders with shipping deadlines.
Yes. eCommerce and retail, grocery and food distribution, healthcare and pharmaceutical, industrial supply, and consumer packaged goods industries are industries that benefit from wave planning. These are industries with high order volume, delivery sensitivity, and high operational complexity.
Yes, wave management is designed to make warehouse operations, including same-day shipping, possible. Wave management creates a structure that speeds up the order fulfillment, speeding up the process for all warehouse operations, such as same-day shipping.
Your warehouse isn’t slow because your team isn’t working hard. It’s slow because they’re working inefficiently. When every picker is chasing orders in random directions, you lose time, increase errors, and risk customer satisfaction.
Wave picking fixes that by turning chaos into coordination. By grouping orders for optimized picking routes and releasing them in scheduled “waves,” you can streamline picking, reduce walking time, and enhance picking speed, especially in high-volume eCommerce environments.
In this guide, we’ll explain what wave picking is, how it works, and how to use it to run a faster, leaner, and more accurate warehouse.
Wave picking is a warehouse picking strategy where orders are grouped and released in scheduled “waves” throughout the day. Each wave organizes orders based on factors like delivery time, product type, or warehouse zone, to help your team pick faster, move smarter, and stay organized. When paired with automated warehouse picking systems, wave picking becomes even more powerful, and minimizes manual effort while maximizing speed and accuracy.
For example, a warehouse might group all orders that need same-day shipping into a morning wave, while standard shipping orders are picked in the afternoon. This keeps the flow structured and reduces chaos on the floor.
Brands using wave picking have seen measurable results. A study published in Acta Logistica found that accurately batching and releasing orders in structured waves reduced cycle times by more than 13% compared to unplanned methods, proving how it standardizes warehouse processes and improves resource utilization. This demonstrates how even modest changes in picking structure can lead to significant gains in warehouse efficiency.
Wave picking operates through a structured, three-phase process: pre-wave, wave, and post-wave.
Each stage plays a critical role in coordinating order fulfillment, from organizing batches of orders to guiding pickers efficiently through the warehouse and ensuring fast, accurate packing and shipping. Understanding how each phase works is key to unlocking the full efficiency potential of wave picking.
Before picking begins, the warehouse management system (WMS) organizes inventory for efficiency by grouping orders into waves based on factors like shipping deadlines, SKU type, or zone. It then generates batch pick lists, allocates resources, and ensures that equipment and carts are ready, laying the groundwork for a smooth picking process using proven picking strategies.
Good Company, a 3PL provider, exemplified this by leveraging ShipHero's multi-item batch feature. This streamlined their pre-wave setup, enabling them to group multiple orders with shared items into single picking runs. This drastically reduced picker travel, and as they scaled from 500-600 to 6,000-10,000 units daily within 18 months, allowed them to halve their pick time. This demonstrates the immense power of an optimized pre-wave process.
Once a wave begins, pickers follow optimized routes through the warehouse to collect items. The goal is to reduce backtracking and congestion by assigning pickers to specific zones or paths.
E-Commerce Xpress, an eCommerce fulfillment provider, has significantly streamlined its picking process by adopting ShipHero's Warehouse Management System (WMS). Their previous manual methods caused inefficiencies and excessive picker travel. By using ShipHero's multi-batch order feature, they transformed their picking phase. This technology groups multiple orders into single runs, creating highly optimized routes and eliminating unnecessary trips. The result was profound: E-Commerce Xpress could fulfill 200 orders in just 2 hours with one person, a task that previously required four staff members 4-5 hours. This showcases how wave picking handles peak operational loads and supports multi-order fulfillment with ease.
After items are picked, they move to packing and shipping. This phase includes labeling, verifying accuracy, and dispatching the final product. A well-organized post-wave process ensures orders are completed on time and without mistakes.Consider Vareya, a 3PL and fulfillment company, which dramatically improved its post-wave efficiency and client satisfaction by adopting ShipHero's Warehouse Management System (WMS). Previously, Vareya struggled with disconnected systems, resulting in significant errors and excessive paperwork. By migrating to ShipHero, they automated workflows and shipping labels, ensuring efficiency and accuracy in packing and dispatch. This allowed them to triple business volume and meet customer service levels consistently.
To get the full benefits of wave picking, it’s essential to follow proven best practices that align your people, tools, and workflows. From using the right technology to organizing pick paths and handling carts efficiently, these core strategies—like those in our warehouse picking strategies guide—will help you maximize speed, accuracy, and productivity in every wave.
A powerful WMS like ShipHero automates wave creation, drives real-time decision-making, and optimizes paths. It ensures every wave is precisely executed and synced with inventory.
Calculating optimal picking routes is one of the most effective ways to reduce travel time on the warehouse floor, a major contributor to inefficiency. By using route optimization software, pickers follow the shortest and most logical paths through the facility, thereby avoiding unnecessary backtracking and congestion. This not only speeds up fulfillment but also reduces fatigue and boosts overall productivity, especially in high-volume environments where every second counts.
Efficient cart handling is key to successful wave picking. Organizing carts by order, zone, or SKU reduces sorting time and speeds up packing. This keeps the workflow smooth, reduces errors, and enhances overall fulfillment efficiency.
Wave picking comes in different forms, each suited to specific warehouse needs. Whether you’re handling large SKU volumes, urgent orders, or multiple zones, choosing the right strategy can boost speed, accuracy, and efficiency.
Organizing wave picking by product type allows warehouses to group similar SKUs into the same wave. This reduces picker travel time, as items are often stored near each other, and enables faster, more efficient picking by creating consistent, repeatable paths through the warehouse. It’s especially useful for high-assortment operations where grouping like products streamlines the process.
Wave picking by order priority ensures that urgent orders, such as express shipments or VIP customers, are grouped and processed first. By releasing these high-priority orders in the earliest waves, warehouses can ensure faster turnaround times and meet strict delivery deadlines, thereby maintaining high customer satisfaction and consistent service levels.
Dividing the warehouse into picking zones allows each wave to focus on a specific area, reducing unnecessary movement and streamlining the picking process. Assigning pickers to dedicated zones allows waves to run simultaneously in different zones, reducing congestion and enabling scalability in operations.
Wave picking is a fulfillment strategy designed to group orders into scheduled "waves" based on factors like shipping deadlines, product locations, or customer types.
This method is especially valuable in high-volume or time-sensitive operations where precision and speed are critical. Below are four key benefits of using wave picking in your warehouse:
Wave picking keeps operations structured, which allows you to process more orders per shift without expanding your physical footprint.
By reducing idle time and unnecessary movement, wave picking streamlines the entire fulfillment process. After adopting ShipHero’s WMS, American Tall saw a 275% increase in picking efficiency and cut fulfillment errors by 50%, allowing them to scale operations by 400%—clear proof of how structured picking methods lead to faster, more reliable order delivery.
With batch pick lists, scanning, and real-time tracking, wave picking drastically reduces errors in item selection and order completion.
Fewer errors, faster picks, and optimized labor use = lower costs. Wave picking helps you do more with fewer resources.
The main difference between wave picking and batch picking lies in their timing and level of structure. Wave picking organizes and releases orders at scheduled times throughout the day, which is ideal for high-volume warehouses where precise timing and a smooth workflow are essential. This method offers a structured approach that reduces errors and supports scalability, but it requires more upfront planning and a reliable warehouse management system.
In contrast, batch picking allows warehouse staff to pick multiple orders in a single trip without being tied to a specific schedule. It’s a simpler, more flexible method that’s well-suited for smaller operations with lower order complexity.
While batch picking is easy to implement and has a lower barrier to entry, it becomes less efficient when dealing with large volumes or time-sensitive orders. Choosing the right approach depends on your warehouse size, order volume, and fulfillment goals.
Yes. Wave picking can scale down for smaller operations to help them improve organization, reduce picker confusion, and streamline fulfillment.
No. Only certain WMS platforms, such as ShipHero, offer full wave picking functionality, including automated order grouping, routing, and inventory syncing.
Absolutely. Wave picking was designed for fast-paced, high-volume environments where timing, accuracy, and scalability are critical.
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