Tag: 3PL

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Fulfillment

What is a 3PL? What eCommerce Brands Need to Know Before They Outsource Fulfillment

woman scans apparel items at a 3PL shipping station

If your team is spending more time packing boxes than building your brand, it is likely time to take a serious look at third-party logistics. The term “3PL” gets used constantly in eCommerce circles, but what it actually means, and what a good 3PL relationship looks like in practice, is worth unpacking carefully. Here is what you need to know before you make that decision.

Key Takeaways

  • A 3PL, or third-party logistics provider, manages warehousing, order fulfillment, shipping, and returns on behalf of eCommerce brands.
  • A full-service 3PL can support receiving, inventory storage, pick and pack, carrier management, returns processing, and value-added services such as kitting, bundling, personalization, and subscription box assembly.
  • For many growing brands, outsourcing fulfillment can convert fixed warehouse, labor, and technology costs into a more variable operating model.
  • Warehouse location and network design are major factors in 3PL selection. The right footprint can reduce shipping zones, improve delivery speed, and lower transportation costs.
  • Key criteria for evaluating a 3PL include industry fit, technology, eCommerce integrations, demonstrated operational performance, pricing transparency, communication, and the ability to scale during peak season.

A 3PL Manages the Operational Work Between You and Your Customer

3PL stands for third-party logistics. When you work with a 3PL, you ship your inventory to their warehouse. From there, they handle everything downstream: receiving and storing your products, picking and packing individual orders, and shipping them directly to your customers.

Consider this. Every order your business ships requires warehouse space, trained staff, packaging materials, carrier accounts, and software to track it all. A 3PL handles all of these logistics for you, operating as an extension of your business.

You retain full visibility into your inventory and order status. The 3PL absorbs the infrastructure, the labor, and the carrier relationships. You focus on your product and your customers.

The Services a Full-Service 3PL Actually Provides

Not every provider offers the same scope of services, so it is worth knowing what to ask for. A full-service 3PL typically handles everything from inbound to outbound logistics:

  • Receiving and putaway: When your inventory arrives, the warehouse team unloads it, inspects it for accuracy and damage, and assigns it a storage location tracked in a warehouse management system (WMS). You can see exactly how many units you have and where they are at any time.
  • Pick and pack: When an order comes in through your eCommerce platform or marketplace, warehouse staff pull the correct items, package them according to your specifications, and prepare them for shipment. For brands that care about the unboxing experience, this step is where your 3PL either earns your trust or loses it.
  • Carrier management and shipping: The 3PL generates shipping labels, coordinates with carriers like UPS, FedEx, and USPS, and applies negotiated rates that benefit from their shipping volume. Because 3PLs aggregate shipping volume across multiple clients, they may be able to provide access to competitive carrier rates and a broader mix of shipping options than many brands can secure on their own.
  • Returns processing: Reverse logistics are handled on your behalf. A strong reverse-logistics process helps brands recover value by quickly inspecting returned products, determining disposition, refurbishing or repackaging when appropriate, and returning sellable inventory back to stock.
  • Kitting and assembly: Subscription boxes, product bundles, gift sets, promotional inserts, and custom assembly work can all be managed at scale. For brands running monthly subscription programs or seasonal gift campaigns, this is a meaningful differentiator.

The Economics Make More Sense Than Most Brands Expect

When you fulfill orders in-house, your costs are largely fixed. You pay for warehouse space, staff, and systems whether you ship 200 orders a month or 2,000. You carry those costs through slow months and then scramble to find additional capacity when volume spikes during peak season.

A 3PL converts most of those fixed costs into variable ones. You pay for the storage space you actually use, the orders that ship, and the labor involved in processing them. When volume is lower, your costs drop. When it spikes, the 3PL absorbs it without you having to hire seasonal staff or find temporary warehouse space on short notice.

For most eCommerce brands, the crossover point where a 3PL becomes more cost-effective than in-house fulfillment comes earlier than expected. Once you factor in the true cost of your own time, the overhead of a warehouse lease, the loaded cost of labor, and the carrying cost of inefficient inventory placement, a 3PL often wins on unit economics well before you hit high order volumes. For many brands, outsourcing starts to make economic sense once monthly order volume becomes consistent enough to justify a more formal fulfillment operation. Some brands begin evaluating 3PLs around a few hundred orders per month, but the right timing depends on order complexity, SKU count, storage needs, shipping profile, and internal labor constraints.

The real comparison is not just 3PL fees versus internal labor. Brands should compare the fully loaded cost of in-house fulfillment, including warehouse rent, labor, payroll burden, packaging, systems, equipment, management time, error costs, returns handling, and shipping.

The Signals That Tell You It Is Time to Make the Switch

There is no single right moment to bring in a 3PL partner. But a few signals tend to come up consistently:

  • You are shipping to customers across the country from a single location, and long transit times are hurting your customer satisfaction scores or conversion rate.
  • Your team is hitting capacity limits and peak seasons are creating genuine operational strain.
  • The cost of managing fulfillment in-house is climbing faster than your order volume.
  • You are launching on a new channel, such as Amazon, a retail wholesale program, or a subscription model, and your current setup cannot support it cleanly.
  • You want to expand internationally and need a partner with cross-border shipping experience.

Any one of these is a reasonable trigger. The combination of two or more usually means the window to act is now.

Location, Technology, and Communication Are What Separate Good 3PLs from Great Ones

A 3PL’s warehouse location directly affects your customers’ experience. The right 3PL footprint depends on your customer base, order profile, and inventory strategy. Some brands benefit from one strategically located facility near major parcel hubs. Others benefit from a distributed network that places inventory closer to customers and reduces average shipping zones.

Technology is equally important, and it is where many 3PLs fall short. Strong 3PLs maintain a strong WMS and client portal that provide visibility into:

  • Real-time inventory by SKU and location
  • Order status
  • Shipment tracking
  • Receiving status
  • Returns status
  • Inventory adjustments
  • Reporting by channel, SKU, order type, and exception

Your fulfillment partner should also integrate directly with your eCommerce platform, whether that is Shopify, BigCommerce, WooCommerce, Magento, or a marketplace like Amazon. Orders should flow automatically from your storefront to the warehouse floor. Technology development should be speedy and responsive to your pain points and needs.

Proactive communication and transparency are not optional features. They are the foundation of a working partnership. Ask any prospective 3PL how they handle exceptions, what their order accuracy rate is, and how they communicate when something goes wrong. The answers will tell you a great deal about whether the relationship will hold up at scale.

What Else to Evaluate Before You Commit

Beyond location and technology, a few other factors are worth weighing:

  • Industry fit: A 3PL that specializes in bulky industrial goods is not the right partner for a fashion or beauty brand. Look for a provider with demonstrated experience handling your product category, including any relevant compliance or handling requirements.
  • Scalability: Ask how the 3PL handles peak-season volume increases and what their capacity headroom looks like. A provider that is already operating near capacity is a risk. A partner that is equipped to scale with you is key.
  • Pricing transparency: Ask for a full rate card upfront, including storage fees, per-order fees, receiving fees, return processing fees, and any minimums. Hidden fees are one of the most common sources of frustration in 3PL relationships.
  • References: A reputable 3PL should be willing to connect you with current clients in a similar product category. A conversation with a brand that has worked with a provider for two or three years will tell you more than any sales presentation.
  • Client success and communication: Ask who will manage your account, how often you will review performance, how exceptions are escalated, and whether the support team is close enough to the operation to solve issues quickly.

Questions to Ask a 3PL

A strong 3PL eCommerce fulfillment partner should be ready and able to answer these questions:

  • Can you show us your WMS and client portal?
  • What performance metrics do you track and share with clients?
  • What are your order accuracy and on-time shipping rates?
  • How do you prepare for peak season?
  • What fees are not included in standard pick, pack, storage, and receiving charges?
  • How do you handle returns inspection, disposition, and restocking?
  • Who manages our account, and how are exceptions escalated?
  • What product categories do you specialize in?
  • Can you provide references from brands with similar order profiles or SKU complexity?

We Built Boxzooka Around the Brands That Need This Most

At Boxzooka, we work with growth-stage fashion, beauty, and lifestyle brands that need more than a generic fulfillment house. Our fulfillment centers span coast to coast, so we can position your inventory closer to your customers and shrink the average shipping zone across your order base. For most of our clients, that translates directly into lower shipping costs and faster delivery times.

Our technology-enabled platform integrates seamlessly with Shopify, BigCommerce, WooCommerce, Magento, and other major platforms, so orders flow from your storefront to our warehouse floor automatically. Through our Client Experience Portal (CXP), you get real-time visibility into every unit in storage and every order in process, plus the reporting you need to make decisions with confidence.

As a boutique, high-touch 3PL, we handle the full range of eCommerce fulfillment: kitting and assembly, subscription box programs, branded and custom packaging, personalization, returns management, and cross-border shipping. We are also built for complexity, whether that means deep SKU profiles, wholesale and retail orders running alongside your DTC channel, or specialized handling for premium products. Because we built our operation around eCommerce from day one, our team understands what it takes to protect your brand at every touchpoint.

What sets us apart is simple: we shape our operation around your business, not the other way around. Many providers force brands into a one-size-fits-all model, and we do the opposite, building flexible workflows that fit how you actually sell. Our goal is to be the best, not the biggest, so we are selective about the clients we take on and genuinely invested in helping each one scale and thrive. When our clients grow, we grow, and that alignment drives everything we do.

Let’s Talk About Your Operation

Whether you are actively evaluating 3PL partners or just beginning to assess whether outsourcing makes sense, Boxzooka can help you understand your current fulfillment model, identify cost and service opportunities, and determine what the right next step looks like. Contact us today and let’s get started.

Categories
Fulfillment

How to Outsource Order Fulfillment in Seattle

Man holding wooden blocks sees word: FULFILLMENT. Order Fulfillment E-commerce Business Warehouse Distribution concept. Order Fulfillment Management and Delivery Service

Fulfillment is one of the most crucial and complex aspects of any eCommerce business model. In 2024, global warehouse management and order fulfillment generated a $1,868.8 million revenue, and is expected to reach $3,415.4 million by 2030. North America remains the largest revenue generator in the world, and Seattle is fast becoming a strategic West Coast fulfillment hub due to its proximity to ports, access to customers, and tech-forward ecosystem. 

The Seattle metropolitan area offers unique advantages for eCommerce fulfillment, including access to Sea-Tac International Airport for expedited air freight and the Port of Seattle, which handles over 3.3 million TEUs (twenty-foot equivalent units) annually. The region’s robust infrastructure supports seamless connections to major West Coast markets, while its thriving tech sector provides access to cutting-edge logistics innovations and skilled workforce talent.

Many eCommerce businesses find they need to outsource order fulfillment as they grow, reducing overheads and expediting deliveries. In a world where 38% of shoppers will abandon their order if their delivery time is longer than a week, choosing a Seattle fulfillment service provider is an essential step to enable brand growth. 

What Does It Mean to Outsource Order Fulfillment?

When you outsource order fulfillment, you hire a third-party logistics provider (3PL) to manage some, or all, of your fulfillment process. Their responsibilities depend on your unique arrangement, but the typical 3PL process includes: 

  • Receiving and storing inventory: Outsourcing order fulfillment in Seattle means your 3PL fulfillment partner will store and manage your inventory from their own strategic hubs. 
  • Picking and packing: They follow a pick list and retrieve items from the warehouse and pack them for delivery to the end user. 
  • Deliveries and returns: Your Seattle 3PL will schedule and oversee deliveries and facilitate the returns process on your behalf. 

Outsourced fulfillment comes with its own challenges, but when you choose the right provider, you gain an authentic partner, invested in your business success. Premier Seattle 3PLs offer innovative technology, like a warehouse management system (WMS) and integrations with popular eCommerce platforms. 

Outsourcing fulfillment means you can avoid the financial impact of storage space, and the logistical responsibilities of running a warehouse. You can scale with a focus on business growth, generate sales, and build brand awareness free from fulfillment-related tasks. In addition, you have 3PL expertise at your fingertips, helping you boost customer satisfaction while reducing delivery costs. 

Outsourced fulfillment vs. In-House Fulfillment

As an eCommerce business, you have two principal choices for order fulfillment — in-house and outsourced. Each approach has benefits and drawbacks, including:

 

In-House Fulfillment Outsourced Fulfillment
Strategy You manage your order fulfillment internally, including stocking, deliveries and returns.  You outsource a trusted Seattle 3PL to handle various aspects of your fulfillment process. 
Benefits Complete control over fulfillment operations. Freedom to focus on business growth, reduced costs, and fulfillment expertise. 
Drawbacks You need enough space to store inventory and packing materials. You also need the in-house labor and time to pack, ship, and handle returns. Finding a reliable 3PL can be challenging. 

Why Brands Are Choosing Seattle for Outsourced Fulfillment

Amid the uncertainty of recent tariffs, many eCommerce brands are exploring U.S. distribution centers to cut costs and boost customer satisfaction. Seattle is quickly emerging as a premium solution. Access to international import lanes, ports, and proximity to tech-forward eCommerce operations all offer significant distribution advantages for West-Coast and Northwest markets. 

Seattle’s strategic location enables brands to reach West Coast customers within two days, while maintaining competitive deliveries rates through established carrier networks. The city’s position as a gateway to Asian markets also facilitates efficient international expansion, with direct shipping routes to key Pacific Rim countries. Washington State’s business-friendly tax structure, with no state income tax, creates additional cost advantages for brands establishing fulfillment operations in the region.

One of the best things about outsourcing fulfillment is you can look beyond 3PL warehouses in Seattle alone. Instead, you can shift your focus to nationwide reach and faster turnaround times. Seattle also boasts a growing business ecosystem, creating high-demand for frictionless order fulfillment across Direct-to-Consumer (DTC), subscription box fulfillment, and more. 

Key Features to Look for in a Seattle 3PL Partner

Choosing the right 3PL partner is one of your most critical decisions when you outsource order fulfillment in Seattle. Conduct extensive due diligence to ensure your chosen 3PL can handle your business volume and customer expectations. Some of the most important features to look for in your 3PL partner include:

Proprietary Technology and Real-Time Visibility

When you outsource deliveries and fulfillment, it’s natural to want to know where orders are and how soon they will reach your customers. Look for a 3PL partner with a proven WMS that integrates with eCommerce platforms like Amazon, Shopify, and Netsuite. They should provide clear, real-time insight into inventory management, order status, and delivery metrics from a unified, intuitive dashboard.

Flexible Fulfillment for Multiple Sales Channels

Your 3PL should adjust to changing demands in your business model. Look for a partner who can minimize service disruptions whether you’re handling DTC orders, wholesale deliveries, or international shipments. 

Custom Packaging and Brand Protection

Unboxing videos became an overnight sensation in 2005, and their popularity persists today. A massive 52% of consumers are likely to make repeat purchases if their order arrives in premium packaging, meaning you need a partner who understands your brand’s unboxing goals. Looking for a Seattle 3PL that takes steps to safeguard your product quality at every stage of fulfillment. 

Transparent Service-Level Agreements (SLAs)

Outsourced fulfillment partners should always publish clear SLAs outlining:

  • Pick and pack accuracy rates
  • Ship times
  • Returns processing commitments

A clear SLA is a sign of professionalism and ensures you always know what to expect. 

Effective Transportation Management

A 3PL with robust regional carrier relationships can help you secure competitive delivery rates. Outsource Seattle fulfillment to one with a tech-driven transportation management system (TMS) to compare and manage delivery costs. You should have complete inventory visibility and control, including the ability to update orders, manage refunds, and create deliveries labels. 

Returns Management Capabilities

Returns are an inevitable part of eCommerce. With the right Seattle 3PL partner, you can turn them from a pain point into an opportunity. Choose a 3PL that offers efficient returns processing, from inspection to restocking. Your partner must also keep your customers informed throughout the process, boosting satisfaction and increasing repeat purchases. 

Scalable Fulfillment Services

Your chosen 3PL should easily scale warehouse, space and labor to meet changing business demands. Look for a partner that can protect your brand reputation throughout seasonal spikes and rapid growth without disruption. 

Data-Driven Performance Monitoring

Seattle’s competitive eCommerce market means you need to make decisions based on real-time data. Look for a 3PL that offers detailed reporting on fulfillment accuracy, delivery times, order volumes, and seasonal spike performance. 

Access to accurate 3PL metrics allows you to identify trends and continuously improve your operations. Your chosen 3PL should prioritize transparency and provide actionable insights to improve operational efficiency and boost customer satisfaction. 

Experience in Your Product Vertical

Every product vertical has fulfillment challenges. A 3PL with proven experience in your industry understands beauty, apparel, and consumer electronics nuances. They can tailor their processes to meet industry requirements, including specialized packaging, environmental controls, or kitting requirements. 

Look for a Seattle 3PL that knows your product inside out. They should have the vertical-specific expertise to reduce errors and speed up fulfillment processes. 

6 Common Mistakes to Avoid When Outsourcing Fulfillment

You have several choices when you outsource order fulfillment in Seattle, and it’s easy to overlook critical aspects of your decision. Avoid these common mistakes to ensure you make the right choice for your business: 

1. Being Unclear About Your Fulfillment Needs

Outsourced fulfillment is a partnership, and both parties need to understand the nature of the relationship. Map out your logistics process clearly for your 3PL, including the type of products you deliver, how often, and delivery turnaround times. 

Define your expectations from the outset in terms of inventory storage, management, and returns processing. The more your Seattle fulfillment partner knows about your business and requirements, the better they can streamline your operations. 

2. Focusing Solely on Pricing

3P fulfillment service costs vary in Seattle, but basing your choice entirely on the lowest price can add unnecessary risk. Instead, evaluate pricing in conjunction with other factors, like scalability, technology, and returns processing policies. Low prices could mean hidden fees or limited capabilities, damaging your business in the long term. 

3. Overlooking Technology Integrations

Technology is the beating heart of modern Seattle fulfillment, and one of the most important considerations when choosing a 3PL partner. Establish whether your inventory system will integrate with their WMS to avoid data errors and inventory challenges. 

Your chosen partner should have a robust technology infrastructure. In addition, their software should give you real-time visibility into your deliveries, inventory, and performance metrics. 

4. Underestimating the Value of Scalable Fulfillment Solutions

When you outsource order fulfillment in Seattle, think about future business growth. Instead of selecting a 3PL that can only help you in the present, look for one equipped to support your expansion. They should be able to scale with your business, offering the warehouse space, staff, and infrastructure to support your changing operations. 

Your 3PL must also be flexible, streamlining sales through multiple channels and accommodating seasonal demands. 

5. Prioritizing Operations Over Customer Satisfaction

Your customers are the backbone of your business, and 16% of respondents in a recent survey said they would abandon shopping with a retailer if they receive an incorrect delivery, even once. Another 14% said they would not shop with a brand again if they receive a single late delivery. 

With consumer expectations becoming increasingly stringent, one of the most costly mistakes you can make is choosing a Seattle 3PL that neglects their experience. Your 3PL is an extension of your business, and they should care about your customers. Look for a partner that understands your brand values and customer service expectations to ensure complete alignment. 

6. Skimming Through the Paperwork

Outsourcing order fulfillment in Seattle is about partnership instead of shifting the load. Your relationship requires constant, open communication from the moment you receive your contract. Many businesses sign their contracts and SLAs while missing critical terms about cost, responsibilities and performance goals. 

Examine your contract in detail and choose 3PL that encourages questions. Look for hidden fees, and ask how they will measure performance. Set up regular meetings with your account manager so you can adjust your strategy when needed.

Why Boxzooka Is a Smart Partner for Seattle Fulfillment

Boxzooka offers Seattle brands the scale, technology, and expertise to take your operations to the next level. Our nationwide network includes strategic West Coast reach, so you can serve customers quickly across the country. Whether you’re preparing for seasonal spikes, expanding into wholesale, or launching in new markets, our flexible warehouse solutions are built to adapt alongside your growth.

Our proprietary WMS integrates in real time with platforms like Amazon, Shopify, and Netsuite, giving you complete visibility into inventory and delivery performance. The Boxzooka onboarding process is seamless, supported by a dedicated client success manager who streamlines your operations from day one. 

Boxzooka has grown 194% since 2019 — a testament to our ability to assist high-growth brands scale their operations. Our combination of advanced technology, operational flexibility, and high-touch customer services makes us an ideal partner for Seattle-based fulfillment. We’re ready to help your brand deliver faster, protect quality, and create exceptional customer experiences.

Find the Best Way to Outsource Order Fulfillment in Seattle With Boxzooka

Outsourcing fulfillment in Seattle offers clear advantages—cost savings from optimized operations, the ability to scale quickly without adding internal overhead, and faster deliveries that keep customers coming back. With the right 3PL partner, fulfillment isn’t just a logistical necessity—it becomes a true growth engine for your business, freeing you to focus on product development, marketing, and customer relationships instead of warehouse management.

Boxzooka combines nationwide coverage with strong West Coast reach, flexible warehouse solutions, real-time WMS integrations, and high-touch client service to help Seattle-based brands grow with confidence. From handling seasonal spikes to expanding into new markets, we adapt to your business needs without sacrificing speed, accuracy, or quality.

If you’re ready to transform your fulfillment from a bottleneck into a competitive advantage, contact the Boxzooka team today to explore custom Seattle fulfillment support tailored to your brand. Together, we’ll design a solution that delivers faster, protects your brand, and gives you the operational freedom to scale.

 

Categories
Apparel Fulfillment

7 Tips for Packaging Apparel for Shipping

Wardrobe boxes with clothes on grey background

Consumers continue to move from in-store to online fashion shopping. By 2030, the global apparel market is estimated to reach $2.26 trillion, and 51% of families are shopping early to avoid rising prices due to tariffs. A clear trend exists in the need for more efficient apparel shipping.

An effective fulfillment plan is essential for retailers to navigate this market successfully. Thoughtful strategy can help you meet your customers’ demands, even when those expectations include same-day delivery. A strong strategy will result in fewer returns, better branding, and more loyalty. These seven tips for packaging apparel for shipping can help boost your fulfillment and grow your brand.

1. Choose the Right Packaging Materials for Fashion SKUs

Choosing the right packaging material is an excellent way to enhance your customers’ retail experience. Consider the following for selecting the best packaging materials:

  • Prioritizing brand identity: Packaging has a significant impact on the consumer’s impression of your brand. By using the right colors, logos, and designs, you can attract your ideal customer by addressing consumer preferences and market trends.
  • Choosing sustainable materials: Sustainable materials are a priority for consumers who are mindful of the environment. An increasingly greater number of consumers are willing to pay more for sustainable packaging. 
  • Protecting the product: While being lightweight and easy-to-ship are major requirements, it shouldn’t come at the expense of protecting the product. Choose materials that are durable and weather-resistant. 
  • Choosing the tight-size packaging: Excessive packaging can impact your operations and your consumers. From a business perspective, it’s more costly. For consumers, it’s challenging to dispose of. 
  • Enhance the unboxing experience: The unboxing experience helps you connect with your customer. It’s their first tangible experience with your brand, so it is best to make it memorable. 

2. Protect Delicate Fabrics

Knowing how to ship delicate fabrics is vital in fashion fulfillment. It also addresses some of the pain points that both you and your customers may experience. 

  • Damage during transit: Fragile fabrics are prone to snag, tear, or crease. To ensure they reach their destination in the best condition, fulfillment service providers recommend using padded mailers, tissue, and rigid outer boxes.
  • Moisture and humidity exposure: Moisture-prone areas or longer shipping distances may result in high humidity, which could lead to mold, stains, or odor. Some mailers are excellent for protection from handling, including inner moisture protection is advisable. This simple addition can save you time, effort, and refund costs.
  • Inconsistent brand presentation: Perception is key in branding, especially if you are establishing a boutique or high-end brand. Delicates often fall into these categories, and if the packaging is wrong, damaged, or the cause of a wrinkled garment, the entire brand image can be affected.

3PL fulfillment service providers like Boxzooka offer their customers packaging solutions that protect delicate garments. These solutions may include: 

  • Using void fill and a biodegradable bubble wrap for padding 
  • Wrapping the inner contents with cellulose for visibility and protection 
  • Making custom packaging adjustments based on stock keeping unit (SKU) sensitivity — for instance, shipping lace or silk

3. Fold and Present Like It’s On a Shelf

Unboxing is a social media trend often found on YouTube, TikTok, and Instagram. One of the first things viewers notice is the presentation of the packaged goods. One survey showed that 40% of consumers would share products online because of how it was packaged.

Reasons why you should fold apparel neatly when shipping it include: 

  • You reduce the chances of the product creasing excessively 
  • Your customer has a positive retail experience  
  • It offers an efficient use of the packing space 
  • It presents your brand as professional 
  • Neatly folding the item might prevent returns, especially for items such as wedding dresses or expensive suits that require specialized care to remove creases 

Some tips for packaging apparel for shipping this way are: 

  • Fold neatly and consider the natural crease lines for the garment 
  • Try to reduce tag visibility 
  • Use presentation inserts to enhance the appearance of the packaged goods 

4. Label Accurately

Accurate shipping labels help ensure the safety of your packages and make deliveries quicker and more efficient. The accuracy of your shipping labels will determine whether your apparel fulfillment service can deliver on the promise you made to your customer.  

Some of the reasons why you should improve your label accuracy include: 

    • The correct delivery: Your packages end up where they should, which reduces delivery returns.
    • Faster delivery times: Correct labels simplify the sorting and routing process, which reduces the need to intervene or reprocess manually. 
  • Cost efficiency: a smooth, on-time delivery means you don’t have to worry about re-shipping fees, return shipping, or refund processing. The correct label reduces the time customer service has to spend resolving label-related issues.
  • Reduced risk of lost packages: When packages get lost, both the business and the consumer lose, especially when you’re on a tight timeline, like delivering back-to-school apparel. A precise label ensures traceability throughout the entire supply chain process, especially when it includes additional features such as barcodes, packing slips, SKUs, or smart trackers. 
  • Legal and customs compliance: If your shipments are going across the border, your shipment labels need to be in the right format and include customs details. If not, customs on either side can fine you, or hold or confiscate the goods.
  • Inventory and fulfillment accuracy: A good shipping label helps your business through the most intensive and expensive part of the fulfillment process, also known as the supply chain last mile. The last mile involves getting the goods from the warehouse to the consumer and involves several logistics hurdles to jump through. Your shipping label acts as a wayfinder to get your package to the right destination.

5. Plan for Returns

Returns are a natural order of business, and even the trendiest brands have a consumer-centered returns policy. Having a good return policy is essential, as it deeply impacts consumer decision-making. Naturally, tips for packaging apparel for shipping should include an easy way to return those goods, for instance, include resealable packaging and clear return instructions. 

A frictionless process boosts customer satisfaction and reduces the load on your customer service team. An easy-to-execute returns process allows consumers to take charge without feeling frustrated. A clear policy gives your service team the autonomy they need to make decisions about the returns. 

6. Consider Climate and Transit

Not all your packages are going to handle the shipping process the same way. Two of the reasons products need tailored packaging solutions are climate and transit. For instance, one of your products could be heat sensitive and travel a short distance in an arid, hot region. Another could be delicate and have a long and challenging haul to its destination. 

Consider all the elements that might affect your packaging, and adjust to accommodate these. For instance, add moisture barriers or protective sleeves. 

Transit considerations are not only weather-related. You also need to factor in whether there are several hand-off points in the process. Solutions for these instances can include durable packaging and tamper-evident seals.

7. Work With a Fashion 3PL

Consumers are turning to e-commerce businesses to fulfil their fashion needs, and as such, the apparel logistics market size is expected to grow at a CAGR of 6.5% from 2024 to 2030. Efficient deliveries are a priority, and that’s where a specialized fashion 3PL service steps in. It offers expertise and infrastructure tailored to the unique needs of clothing and accessories. 

More than just warehousing and shipping, a fashion 3PL like Boxzooka brings precision, flexibility, and brand protection to every step of the fulfillment process. Here’s how a fashion 3PL delivers added value.

Inventory Accuracy Built for Fashion

Fashion SKUs move fast, change frequently, and require meticulous organization. An apparel fulfillment partner like Boxzooka uses item-level barcode scanning, multi-SKU bundling, and real-time inventory tracking to ensure 99.9% fulfilment accuracy.

Packing That Protects the Brand

In fashion, packaging is part of the product experience. A top-tier 3PL service offers on-brand, flexible packing options: from eco-friendly polybags to branded tissue and custom kitting. A good 3PL will also prioritize solutions like climate-controlled packaging and the ability to split or combine orders with minimal touchpoints.

Compliance With Retailer Requirements

Big-box retailers and marketplaces each have strict compliance rules: carton labeling, ASN timing, EDI integration, and more. If you’re working with a fashion brand and you don’t meet these requirements, you risk chargebacks and penalties.

Boxzooka’s apparel fulfillment services include pre-configured routing guides for major retailers, EDI mapping, and automated compliance checks. That means your products land on shelves, or at customers’ doorsteps, without friction.

Take the Next Step in Smarter Apparel Shipping

Smarter apparel shipping that delights your customers and increases the likelihood of return business starts with smart tips for packaging apparel for shipping. Proper packaging does more than protect your products; it safeguards your brand, enhances the unboxing experience, and reduces costly returns. 

When you work with a fashion-focused 3PL like Boxzooka, you gain access to precise inventory control, retailer-ready compliance, and flexible packing solutions designed specifically for the apparel industry.

Now is the perfect time to review your current fulfillment and packaging setup. Is it scalable? Is it brand-consistent? Is it protecting your margins as well as your merchandise? Explore our apparel fulfillment services and see how Boxzooka can elevate your logistics game. 

Categories
Apparel Fulfillment

How a 3PL Improves Apparel Fulfillment

Female business owner examining a white garment for quality before packaging, working in a fashion e-commerce setting

Fashion eCommerce keeps growing, reaching trillions of U.S. dollars globally. The uptick in trends boosts the market but also makes fulfillment more challenging to manage. Increased product variations, faster delivery expectations, and high return rates make shipping accuracy and speed a priority for apparel brands.

A reliable 3PL company helps simplify your apparel fulfillment. It gives your growing team the structure, support, and visibility needed to stay consistent at scale. By partnering with the right 3PL, you can receive shipping coverage across the US and have a platform that keeps you in control of your inventory.

Apparel Fulfillment Challenges for Growing Brands

Scaling a fashion brand brings fulfillment challenges that are tough to manage in-house. 

  • SKU variability: One of the biggest issues is high stock-keeping unit (SKU) variability. A single shirt may come in six sizes, four colors, and seasonal prints. That multiplies inventory counts quickly, making storage and picking more difficult.
  • Fast cycles: Fashion cycles also move fast. New drops, limited runs, and trend shifts mean short product life cycles and unpredictable order patterns. Brands need systems that can adapt on the fly without causing stockouts or delays.
  • Frequent returns: Returns are another pressure point. Clothing and accessories remain one of the most frequently returned categories in eCommerce. Without clear processes, managing returns can slow operations and drain revenue.
  • High labor intensity: Apparel fulfillment often requires labor-intensive order processing. Folding, tagging, kitting, and packaging must be done with care to protect garments and deliver a branded customer experience. High levels of manual work increase costs and introduce room for error, particularly during seasonal surges. 

What Is an Apparel 3PL?

An apparel 3PL, or third-party logistics provider, specializes in the fulfillment needs of fashion and clothing brands. Unlike general 3PLs, these partners manage the fast-paced, high-variability, and presentation demands that come with fashion eCommerce fulfillment.

The ability to support detailed operations at scale sets fashion 3PLs apart. Apparel 3PLs specialize in accurate pick-and-pack methods, real-time inventory tracking, custom kitting for multi-item orders, and efficient returns handling. Apparel 3PLs prioritize the crucial services that help maintain speed and reduce errors.

They also run warehouse management systems (WMS) designed specifically for apparel logistics. These platforms cater to fragile fabrics, branded packaging, and the rapid inventory turnover characteristic of fashion retail.

Additionally, fragile fabrics require careful folding and packing. Branded packaging needs consistency across thousands of orders. With frequent product drops and high turnover, your inventory systems must be built to handle fast-paced changes without compromising accuracy.

Key Ways 3PLs Improve Apparel Fulfillment

Apparel brands need reliable operations to keep up with growth, and every step matters, from inventory to shipping. A strong 3PL helps manage the challenges of each step in the fulfilment process. With support from a trusted eCommerce fulfillment service, teams can focus less on logistics and more on brand growth.

Here are five ways 3PLs help improve apparel fulfillment:

1. Faster, More Accurate Order Processing

A 3PLS services, technologies, and resources make order processing more accurate in several ways:

  • Barcode scanning: Barcode scanning reduces fulfillment mistakes. Each item is scanned during picking and packing to verify size, color, and SKU. These checks help prevent mis-picks and incorrect shipments, which are common in fashion due to high product variation.
  • Smart packing and automation: Automation speeds up the packing process. Many apparel third-party providers use conveyor-based systems or smart packing stations to move orders quickly through each fulfillment stage, reducing manual labor and enabling teams to ship more orders per day.
  • Accurate processing: Accurate processing improves the return rate. Fewer errors in picking and packing mean fewer customers requesting exchanges or refunds.
  • Specialized SOPs: Structured workflows support growth. A well-designed 3PL setup for apparel includes standard operating procedures that maintain processing speed as brands expand.
  • Fulfilment tools: A specialized 3PL has fulfillment tools that cater to fashion logistics. The best providers use item-level scanning, digital audits, and SKU sorting tailored to garments.

2. Efficient Inventory Management

Real-time inventory tracking supports product availability. Apparel brands often carry dozens of styles with multiple SKUs. Live updates on stock levels enable teams to respond quickly to shifts in demand and prevent missing sales due to stockouts.

Specialized apparel inventory tools also help reduce costly overstocking. Without clear insight into sales, brands risk holding excess items that fall out of season. Smart tracking systems help phase out slow-moving SKUs early.

One of the greatest advantages of efficient inventory management is understanding seasonal forecasting, which streamlines inventory. Fashion eCommerce fulfillment partners often use historical sales data and trend cycles to adjust storage levels ahead of time, preventing excess during slow seasons and shortages during peak demand. 

Additionally, 3PL companies will prioritize transparent reporting that improves decision-making. Access to clean, real-time inventory data helps brands time new product launches, restocks, and markdowns with greater precision.

3. Custom Packaging and Presentation

Premium packaging reinforces brand identity. Customers associate a high-quality unboxing experience with product value. Consistent packaging builds customer trust. Using the same branding elements across every order helps customers recognize and remember the brand. This strengthens perception and increases repeat purchases.

A fashion 3PL uses custom boxes, branded tape, and inserts to match each brand’s aesthetic. They also use protective materials to preserve garment condition. Tissue paper, wrapping sleeves, and garment bags help prevent wrinkling, scuffs, or moisture damage during transit, especially for delicate or high-end fabrics.

Add-ons elevate presentation without slowing fulfillment. Fashion 3PL providers often integrate tagging, folding, or ribbon wrapping directly into the pick-and-pack process, so presentation doesn’t delay order speed.

Add-ons can also be seasonal, and promotional kits drive engagement. A fashion 3PL can assemble special packaging for holiday drops, new collection launches, or influencer campaigns using coordinated materials like lookbooks, discount cards, and branded inserts.  

4. Streamlined Returns Handling

Streamlined returns handling is one of the most crucial elements of optimized fulfilments. Returns are a major pressure point in fashion fulfillment. Returns topped $890 billion in 2024, with clothing accounting for a large portion of that total. For growing apparel brands, unorganized returns can drain resources, slow down warehouse operations, and frustrate shoppers who expect quick resolutions.

A structured system for returns is crucial for preventing bottlenecks, especially during seasonal surges. Apparel fulfillment partners design workflows for reverse logistics. Returned items are scanned, inspected, and sorted immediately, preventing overflow, accelerating restocking, and maintaining accurate inventory counts. Other benefits of an optimized return system include:

  • Quicker turn-around times: Refund timelines shrink with faster restocking. Prompt return handling leads to quicker refunds. Quick returns also reduce chargeback risks and protect customer relationships.
  • Fewer supply chain disruptions: A fashion 3PL prevents fulfillment disruption. Instead of using internal teams, returns are handled by outsourced staff who follow established protocols to maintain smooth operations during both busy and off-peak seasons.
  • Increased customer loyalty: Transparent return processes build loyalty. When returns are simple, customers feel more confident buying again. That trust encourages better reviews, more repeat purchases, and greater long-term value.

5. Scalability During Surges 

Seasonal demand spikes can overwhelm in-house teams. Events like Black Friday, spring launches, or the back-to-school season often cause unpredictable surges in orders. Without a scalable infrastructure, these surges can overwhelm teams, lead to fulfillment delays, cause customer dissatisfaction, and create operational inefficiencies. 

A fashion-focused third-party logistics (3PL) partner offers the flexibility and resources to scale operations swiftly and seamlessly during these critical moments:

  • Warehouse labor solutions: Apparel 3PLs offer flexible warehouse space and labor solutions. Experienced providers anticipate peak periods by adjusting floor plans, shift schedules, or temporary racking to handle inventory influxes, preventing last-minute bottlenecks.
  • Skilled teams: Instead of having to onboard short-term workers internally, you can rely on the fashion skilled teams. Their experience in apparel fulfillment enables a faster ramp-up and fewer errors.
  • Proven workflows: Fashion eCommerce fulfillment demands precision under pressure. Sales surges can’t compromise branding or accuracy. Fulfillment partners rely on proven workflows to manage high-volume fashion SKUs without delays or mistakes.

Why a Fashion-Focused 3PL Partner Matters

Fashion brands operate in a space where speed, presentation, and customer experience must all work together. Generic 3PL providers may cover the basics, but they often fall short when it comes to the complexity of apparel fulfillment. High SKU variability, fragile products, and rapid inventory turnover demand a specialized approach.

The changing industry relies on fulfillment partners who can adapt quickly, protecting brand value, and stay on trend with how eCommerce is evolving. This is especially true for fashion brands, where a missed delivery window or damaged product can cost customer trust.

That’s where Boxzooka stands out. With a flexible tech stack, global reach, and services built around branded packaging, real-time tracking, and customizable workflows, Boxzooka supports apparel brands with strategies tailored for fashion.

Choose a 3PL to Improve Apparel Fulfillment With Streamlined Services 

Apparel fulfillment requires speed, meticulous packaging, and the ability to scale quickly. A fashion-focused 3PL offers the tools and expertise to handle these demands without compromising quality. 

If you’re ready to streamline your operations, Boxzooka’s apparel fulfillment services offer flexible, scalable support tailored to fashion. From handling seasonal spikes to enhancing unboxing experiences, they bring real value to apparel brands at every stage of growth.

At Boxzooka, we work with fashion brands to get orders out quickly and accurately. Our proprietary warehouse management system tracks every item in real time, while our onboarding process helps operations run smoothly from day one. Need help planning your fulfillment strategy? Contact us now to get a quote or learn more. 

 

Categories
Fulfillment Guides

3PL Vs. 4PL in Los Angeles: What’s the Difference

Logistic management concept. The complex process of planning, organizing and controlling resources to meet the needs of customers.

Picture a scenario where your eCommerce brand just secured a major retail partnership, and order volume has tripled overnight. Your current warehouse operation is stretched beyond capacity, and fulfillment delays are starting to impact customer satisfaction. A case like this represents a critical inflection point for growing Los Angeles businesses: the moment when internal logistics capabilities become a constraint on growth rather than a competitive advantage.

Los Angeles serves as a crucial nexus in global commerce, where Pacific trade routes converge with North American distribution networks. The twin ports of Los Angeles and Long Beach handle approximately 40% of all U.S. container imports, making the region America’s premier gateway for Trans-Pacific trade. Understanding the fundamental differences between third-party logistics (3PL) and fourth-party logistics (4PL) providers has become essential for companies navigating this complex market, especially as delivery expectations continue to intensify.

Examining the distinct characteristics, benefits, and applications of each model to help business leaders make informed decisions about their logistics strategy. A solid logistics model is vital in one of the world’s most demanding markets.

What Is a 3PL?

A third-party logistics provider functions as an operational extension of your business, managing the physical aspects of order fulfillment and distribution. These companies specialize in executing logistics operations with precision and efficiency, enabling businesses to focus on core competencies while maintaining the fast, accurate, and reliable service that modern consumers demand.

For local success, 3PL companies in Los Angeles typically offer comprehensive services, including:

  • Warehousing in strategically located, climate-controlled facilities with advanced security
  • Inventory management with real-time tracking and automated replenishment alerts
  • Order fulfillment including pick, pack, and quality control processes
  • Transportation management leveraging relationships with USPS, UPS, FedEx, and regional carriers
  • Returns processing and reverse logistics that protect brand reputation
  • Technology integration with popular eCommerce brands

The value proposition of 3PL providers extends beyond simple outsourcing. These organizations invest heavily in operational excellence, employing logistics professionals who understand that in the fashion and beauty sectors, presentation matters as much as punctuality. Their expertise translates into optimized warehouse layouts, refined packing processes that protect delicate items, and volume-based shipping rates that typically offer significant savings compared to individual business rates.

For businesses experiencing rapid growth or seasonal fluctuations, 3PL partnerships provide scalability without the capital investment required for warehouse expansion or proprietary technology infrastructure. Modern 3PLs also emphasize automation technologies that improve accuracy while reducing costs.

What Is a 4PL?

A Fourth-Party Logistics provider operates at a strategic level, serving as an architect and coordinator of comprehensive supply chain solutions. Rather than executing physical logistics operations, 4PLs design and manage complex networks that may involve multiple 3PL providers, carriers, and technology platforms across global markets.

The 4PL model emerged in response to increasingly complex global supply chains that require coordination across multiple stakeholders and geographies. These providers typically offer:

  • Supply chain design and network optimization using advanced analytics
  • Vendor management across multiple 3PL and carrier relationships globally
  • Technology integration creating unified visibility across disparate systems
  • Performance analytics and continuous improvement programs
  • Risk management and contingency planning for supply chain disruptions
  • Strategic consulting on market entry and supply chain transformation

Consider, for example, a consumer electronics company that manufactures in Asia, stores inventory in multiple U.S. regions, and distributes through major retailers and their own DTC channel. A 4PL would orchestrate this entire network, balancing inventory levels, coordinating transportation modes, and providing executive-level visibility into performance metrics.

Key Differences Between 3PL and 4PL

Understanding the operational and strategic differences between these models proves crucial for selecting the appropriate partner, especially in Los Angeles where industrial real estate remains highly competitive:

Comprehensive Comparison

Below shows a detailed comparison between the two models for evaluation criteria:

Evaluation Criteria 3PL Model 4PL Model
Core Function Executes logistics operations Designs and manages supply chain strategy
Asset Investment Owns/operates warehouses and equipment Primarily non-asset based
Client Interface Direct operational partnership Strategic advisory relationship
Technology Focus Proprietary WMS and order management Supply chain visibility platforms
Pricing Structure Activity-based (per order + storage) Management fee plus pass-through costs
Ideal Client Size Small to middle-market Large-scale
Geographic Scope Regional to national coverage Global network orchestration
Implementation Faster onboarding Longer strategic planning
Brand Protection Direct control over packaging/experience 4PLs have less direct control over packaging CX unless intentionally involved in these strategies

Operational Control

The degree of operational control is an important factor for determining the right fulfillment model, especially in fast-paced industries like beauty and fashion.

3PL Model: Provides direct operational control with immediate responsiveness to changing requirements. When a beauty brand needs to add a sample to orders during a social media campaign, or a fashion retailer requires special gift wrapping for holiday orders, communication flows directly to the fulfillment team. This immediacy proves invaluable in trend-driven markets.

4PL Model: Operates through a management layer coordinating multiple service providers. While reducing operational burden, this structure can introduce complexity when rapid changes are needed. Rush orders or special requests might require multiple approvals that don’t align with fast-paced market demands.

Technology and Data Management

Technology capabilities differ significantly between models, impacting the speed and application of operational data.

3PL Model: At Boxzooka, we invest in proprietary warehouse management systems offering real-time inventory visibility, predictive analytics, and mobile dashboards. These platforms integrate seamlessly with eCommerce tools, providing granular data from SKU velocity to carrier performance, enabling data-driven decisions that improve operational efficiency.

4PL Model: Emphasizes enterprise-level analytics aggregating data from multiple sources. While providing strategic insights for executive decisions, these platforms often lack the operational immediacy required for daily fulfillment management in fast-moving consumer goods sectors.

Cost Considerations

The pricing structures of 3PL and 4PL models differ in complexity and alignment with scaling businesses.

3PL Model: Transparent activity-based pricing correlates directly with business growth. Storage fees, pick-and-pack charges, and shipping costs scale predictably with volume. This transparency enables accurate unit economics crucial for maintaining healthy margins in competitive markets.

4PL Model: Adds management fees typically ranging from 10-20% above underlying service costs. While promising savings through network optimization, these benefits generally require significant scale to offset the additional management layer costs.

Which Is Right for Your Los Angeles Business?

The Los Angeles market presents unique logistics considerations. As one of the nation’s most congested metro areas, strategic warehouse placement and efficient route planning become critical for meeting delivery expectations — especially concerning last-mile delivery. The region’s diverse consumer base expects rapid fulfillment while demanding sustainable practices increasingly important to California consumers.

3PL Model Indicators

Your business aligns with the 3PL model if these characteristics apply to you:

  • Your primary channel focuses on DTC, or major online retailers and eCommerce platforms.
  • Your monthly volume ranges from hundreds to tens of thousands of orders.
  • Your product categories include fashion, beauty, or lifestyle items requiring careful handling.
  • The business’s growth trajectory demands flexibility for promotions and seasonal peaks.
  • Operational needs require customization like kitting, gift messages, or special packaging.
  • Geographic focus primarily serves North American markets with fast shipping expectations.

4PL Model Indicators

Consider the 4PL approach if your organization exhibits these traits:

  • The supply chain spans multiple continents with varying regulatory requirements.
  • Your channel complexity includes wholesale, retail, marketplace, and DTC operations.
  • Your existing infrastructure involves managing three or more logistics providers.
  • The annual logistics spend exceeds $10 million across all channels.
  • Strategic initiatives prioritize supply chain transformation over operational excellence.
  • Resource availability allows you to delegate the entire supply chain strategy.

Making Your Logistics Decision

The distinction between 3PL and 4PL providers extends beyond operational differences to fundamental questions about control, strategy, and growth. Los Angeles businesses must evaluate not only current needs but also the flexibility to capture unexpected opportunities, whether responding to viral social media moments or seasonal demand spikes.

For organizations prioritizing customer experience, operational flexibility, and direct control over brand presentation, the 3PL model offers compelling advantages. These providers combine professional expertise with the responsiveness that modern commerce demands, enabling businesses to scale efficiently while maintaining service excellence that builds customer loyalty.

Strategic Implementation for LA Success

Los Angeles businesses face unique challenges requiring specialized solutions. The region’s position as an entertainment and fashion capital creates demand for high-touch fulfillment that protects brand image. Environmental consciousness among California consumers makes sustainable packaging and responsible logistics practices increasingly important differentiators.

At Boxzooka, we understand these challenges intimately. Our proprietary platform provides the transparency brands need while maintaining flexibility to scale. We offer strategic coverage that enables efficient nationwide distribution. Our focus on fashion, beauty, and lifestyle brands, combined with our values emphasizing accountability and servanthood, ensures we understand that fulfillment extends beyond moving boxes to delivering exceptional customer experiences.

We’ve built our 3PL services around the principle that your success is our success, and our fast onboarding process means you can start shipping within weeks, not months. Our technology gives you complete visibility into your inventory and orders, while our team becomes an extension of yours, dedicated to protecting your brand with every shipment.

Elevate Your Logistics Operations With Boxzooka

In a market where competition ranges from local boutiques to global corporations, choosing the right logistics partner becomes a strategic differentiator. The best choice empowers you to compete on customer experience rather than just price, transforming fulfillment from a necessary cost into a competitive advantage that drives growth.

Ready to elevate your logistics operations? Boxzooka’s 3PL services and 3PL technologies equip your logistical growth. Contact us to discover how our technology-driven 3PL services can accelerate your business growth while delivering the exceptional experiences your customers deserve. You can also request a quote and learn more about how our fulfillment services help brands thrive in today’s competitive landscape. 

Categories
eCommerce Guides

How Retailers Can Keep Growing Returns Costs in Check

This images show someone returning a package.

While most retailers have recently recorded a decline in returns, the cost burden is still big, and many retailers are increasingly looking for ways to reverse course even further.

It’s retail’s unavoidable story, especially e-commerce: For each percentage of growth in sales comes more returned items from customers. It’s the double-edged sword that keeps getting sharper, year after year.

And while to some, the 2023 holiday retail season may seem already far away in the rear-view mirror, the true picture of the most recent season of holiday returns is only now becoming clear. The end of January marks the unofficial close of the preceding holiday retail season with the final act of returns. 

The National Retail Federation (NRF) expected holiday returns for 2023 in the U.S. to total around $148 billion compared to $171 billion for the 2022 holiday season, $151 billion during the 2021 holiday season, $101 billion in 2020, and about the same $100 billion for the 2019 holiday season.

While the rate of holiday returns year-to-year may be on the decline for the first year since the pandemic, these numbers fail to tell the whole story. In 2019, before COVID-19 upended consumer buying habits, retail returns for the entire year stood around $309 billion, or 8.1% of total retail sales. They peaked in 2022, more than double that 2019 figure, at $816 billion for the year or 16.5% of sales. In 2023, the total returns declined for the first time in years, at $732 billion or 14.5% of total retail sales.

So, while most retailers have recently recorded a decline in returns, the cost burden is still big, and many retailers are increasingly looking for ways to reverse course even further.

How pandemic changed returns game

It’s hard to believe that it’s been a little over four years since the pandemic changed things forever. Back then, lockdowns and distancing turned ecommerce into the next best option to in-person shopping. From there things took off. According to the NRF, before the pandemic retail growth in 2019 the year-over-year growth in e-commerce was at 3.5%; then in 2020 it jumped to 7.6%, then to 14.4% in 2021, and back to 7% in 2022. Growth in 2023 was expected to drop again to somewhere between 4% and 6%.

COVID’s enduring change to retail is reflected the most on the e-commerce side. It drove millions of consumers to online shopping, who would have otherwise hit up bricks and mortar shops. And while the rate of year-to-year growth may be slowing, there’s a huge new contingent of loyal e-commerce shoppers that won’t give up the new-found ease of digital shopping any time soon.

E-commerce has always been saddled by the returns problem. The more people shop virtually, the more likely they are to return items they couldn’t try on or “test” out before making the purchase. With the new pandemic “crop” of e-commerce consumers, returns will only become more problematic for those retailers that fail to optimize this side of their business.

It’s no longer a seasonal chore where the biggest hit comes during the holidays. Today, for a thriving e-commerce business, returns must be viewed as a year-round, always-on business strategy.

High costs = more restrictive policies

In 2022, for every $1 billion in sales the average retailer lost $165 million in returns, a number that gets bigger and bigger with each passing year. The pandemic saw a lot of returns policies eased, but as the emergency faded, retailers have increasingly looked for more ways to reduce their burden.

The expenses associated with accepting a returned item can oftentimes exceed the item’s resale potential, with shipping costs eating up a huge chunk of that value. Add on top of that the cost of manpower for processing and other key actions within the returns pipeline, it’s no wonder retailers are looking for better options.

Some have implemented fees for returning items while 58% of retailers went to “returnless” or “keep it” returns protocols in 2023. Others are offering store credit in lieu of refunds and some are encouraging shoppers to bring unwanted items back to the physical store. It’s a tricky balance, keeping customer loyalty front and center while putting stronger policies in place to right size the business. Thankfully in the world of retail, customer loyalty isn’t exclusive of a restrictive returns policy.

So how do we balance these business needs while maintaining strong customer relationships?

Maximizing returns at crunch time

For all the tips that can be covered in this context, one thing stands out: Getting returned merchandise through the system quickly and back to stock for potential resale is paramount. For this reason, returns need to be treated with the same urgency as outbound orders.

Focusing on “forward fulfillment” is the key to achieving this velocity, especially when it comes to the annual crush of holiday returns. This means having a strong third-party logistics (3PL) partner that can help manage returned goods, redirecting them to a new destination for processing, repackaging, and resale. Streamlining the returns process in this way, reducing transportation costs, and speeding up the return-to-market cycle, is the end game. Certainly, retailers can achieve this on their own, but a strong 3PL eliminates the hassle and gets it there quicker.

There are other things retailers can do, too: 

     

      • Be prepared: Preparation is key for success during the hefty return season after the holidays. Planning for an influx is critically important. This means having a clear and efficient returns process, which includes a dedicated team to handle returns, a clear returns policy, and a streamlined system for processing returns. 

      • Analyze the data: It’s essential to understand why the product is being returned in the first place. Analyze the data on returns to identify patterns and trends. This can help businesses understand the reasons for returns and take additional steps to address them. 

      • Communicate with customers: Communication is key when it comes to handling returns. Shoppers expect transparency during the returns process and to be kept informed. Communication builds trust and loyalty, giving customers confidence that your business will take good care of them. Having the proper tools and a robust returns plan will alleviate future problems. Make sure customers know what to expect.

      • Automate where possible: Automation helps streamline the returns process and can reduce the burden on staff. Simple tools can include using barcode scanning or RFID technology to track returns, automated emails or SMS texts to keep customers informed, and analytics tools to identify return trends and patterns. 

      • Look for opportunities: Businesses constantly evolve to improve the customer experience. In December 2023, DoorDash and Uber announced a new service: a return Package Pickup service that lets a driver pick up one to five packages from the customer’s doorstep and drop them off at a FedEx, UPS, or USPS location for them. Ensure your customer knows every convenience imaginable to guarantee you’re providing the best customer service possible. 

    While returns remain a significant challenge for online shoppers and stores alike, they can also be an opportunity with the right approach that addresses returns all year round. By being prepared, analyzing the data, communicating with customers, looking for opportunities, and automating where possible, online retailers and stores can handle returns efficiently. More importantly, focus on the relationship you’re building with your warehouse fulfillment center or 3PL. They’re your secret weapon in handling returns easily while building customer trust and loyalty. 

    In just a few short months, the ramp up to the 2024 holiday season will begin. Now is the time to review your returns protocols, take a deep dive into the 2023 season’s data, and build a more efficient system for the season ahead.

    By Tom Behnke

    Categories
    Guides News

    Avoid Supply Chain Dominos by Navigating the Disruption Du Jour

    Shipping Containers

    By Tom Behnke, Total Retail

    It can feel, at times, like a game of dominos. When there’s a global supply chain disruption, like those we’ve been seeing in recent months on the Red Sea and the Panama Canal, e-commerce companies and, ultimately, consumers feel the downstream ripples.

    For those working on the inside, it’s nothing new. There have been plenty of similar events in recent years. During the pandemic, which had its own challenges for supply chains, events like the running aground of the large container ship “Ever Given” in the Suez Canal provide one of the best examples of how one event can add “insult to injury.”

    Another occurred not long after Ever Given — severe labor shortages at vital ports like the one in Long Beach started to inject another complication.

    The period during the pandemic truly was a perfect storm for supply chains. It gave a real-world case study on how seemingly separate and, on their own, manageable snags can combine to upend supply chains from the plant all the way to the customer’s door and how difficult it can be to unwind once started.

    Today the pandemic’s worst effects have passed and now, as the world becomes an increasingly complicated place to do business, we’re seeing yet again how an “isolated” problem in one corner of the world can have an effect on billions.

    ‘Floating’ Economy at Risk in Turbulent World

    A staggering 90 percent of the world’s trade is transported by ship, so the effects can be quite dramatic whenever a “choke point” becomes congested or there’s some other interruption on the “high seas.” For consumers, sometimes it’s noticeable in the lack of inventory in a particular category. Almost always, there’s an added cost from the delay, which is absorbed by the merchant and often passed to the customer.

    As global trade grows, more ships burn more fuel and pay their crews more to be out at sea longer. This alone brings increased costs, but add in disruptions such as we’re seeing in the Red Sea region and it means those increased costs are unavoidable.

    On top of this is growing uncertainty about the future of trade on the “high seas,” a notion that has propelled maritime traders for centuries. Today, as seen in the Red Sea area, forcing carriers away from the Suez Canal and instead around Africa’s Cape of Good Hope, terrorists are challenging free trade in their backyard and affecting consumers downstream.

    Higher Costs Trickling Down

    Last year saw relatively inexpensive ocean freight. Believing that pandemic volumes would carry into 2023, carriers bought bigger ships. As it turns out, this actually had the opposite effect. It resulted in too much supply, coupled with lower demand; the resulting cost of a 40-foot container from Shanghai to Long Beach stayed below $2,000.

    As these latest snags throw yet more wrenches into the mix, container prices in the first month of 2024 doubled and in some cases even tripled. The world container index most recently had the price of a 40-foot container pushing $4,000.

    The primary trade route between East Asia and North America has been especially challenged recently. As China prepared to shut down for the Lunar New Year, there was a rush to get products loaded and shipped. Then there’s the Red Sea. Some carrier traffic is being diverted through the Suez to avoid the Panama Canal, where drought has caused lower water levels. Others are going around the tip of Africa to avoid the threat of attacks and piracy. Suddenly a lot of vessels are taking more time to complete their cycles.

    Be Supply Chain Aware 

    As the world’s carriers work around disruptions, it’s important that any company working within the supply chain stays on top of it every minute of every day.

    Visibility and Communication

    Being in the know, understanding the situation and knowing how it may impact operations and product availability is key. Follow disruptions and understand their residual impact. If you can’t figure it out, reach out to your suppliers and ask questions. The more quickly action is taken the more effectively disruptions can be worked around.

    Reimagine Warehouse Operations

    Consider moving away from major distribution sites in metropolitan cities to several large hubs served by strategically located distribution centers. Having several major hubs within a two- to three-day delivery time of 95 percent of American households is the model that’s cost effective and service-oriented. This allows retailers to make up for lost time once delayed ships make it to port and product finally starts closing in on its final destination.

    Find a Strong Partner

    A third-party logistics (3PL) provider can be a strong solution for those with the resources. A true 3PL partner offers turnkey solutions and advice around warehousing, inventory efficiencies, SKU depth, and velocity, purchase planning, and other vital operations. Hire a 3PL with its finger on the pulse of the entire supply chain.

    Technology is Your Friend

    Technology is evolving all the time, and adapting to the latest warehouse management systems (WMS) technology is paramount. The upgrades can be daunting and pricey, but that shouldn’t deter any company working within the supply chain. A worthwhile WMS must help you grow your business and keep issues within your supply chain visible at all times.

    If anything has been learned since 2020, it’s just how intricate our supply chains are and how one seemingly “unconcerning” issue in a faraway corner of the world can have a major impact down the chain on the other side of the globe, especially as additional disruptions arise.

    No matter the supply chain sector we work in, being experts on the supply chain at any moment in time is critical in overcoming the hurdles that are thrown our way each and every day.

    Tom Behnke is an advisor for Boxzooka, a cloud-based warehouse management software platform and fulfillment distribution center, and vice president of sales and marketing.

    To see the original article, click here.

    Categories
    Fulfillment

    Optimizing Warehouses – Blend of Art, Science, and Humans

    A picture of a large warehouse fulfillment center.

    Today, warehouses in the supply chain are more complicated than ever, from meeting constant and growing customer demand, especially in the e-commerce sector, to an ever-growing selection of products and even globalization. Warehouse operations that are in tip-top shape have never been more important.

    An inefficient warehouse will negatively impact every other part of the business, from sales to customer service and daily operations. Naturally, a highly optimized warehouse provides benefits and profits to the business as well as a “positive halo effect” across the entire supply chain.  

    Warehouse optimization refers to the process of improving the efficiency and effectiveness of a warehouse’s operations, layout, and processes to maximize productivity while minimizing costs. The primary goal is to streamline the flow of goods through the warehouse, enhance order fulfillment speed, reduce errors, and utilize resources more effectively.

    This has become a hot topic in light of the explosion of AI, Artificial Intelligence, software, and other innovative new tools. Machine learning and robotics, in particular, are changing the landscape for the future of material handling. If you scan the agendas at industry events like Modex, Manifest, and ShopTalk you’ll find dozens of speakers and hundreds of companies leveraging the remarkable possibilities. Not surprisingly, SDCE references AI almost 5,000 times when you search the publication’s website. 

    At the same time, we may be in the “too much, too fast” segment of AI product development when it comes to logistics. The best warehouse operations also value the insight and expertise of human beings, who should always be the backbone of a successful model.

    “A tech-only layer on top of the current logistics industry just doesn’t work.,” Ryan Peterson, CEO, Flexport, Wall Street Journal, December 2023. “I still think at the end of the day, there’s a strong role for people with a lot of expertise.” 

    Compliance is an important area that must remain on the radar because it’s not one where AI can be fully trusted. This requires 100% accuracy, something only a real expert can understand and back up.

    Given this landscape, let’s consider the foundational aspects of warehouse optimization. This means an eye for innovation that supports the business and is sensitive to not bankrupting the company. As you build your plan to optimize your warehouse(s), it is prudent to incorporate a blend of automation, technology, and human interdependencies to create process efficiencies.  

    Best Practices for B2B and B2C Commerce.  

    Efficient Layout 

    Warehouse optimization starts with an efficient layout that meets your needs now, with plans for future growth. Do you have a clear highway for material handling equipment that is safe and effective? Map the flow of inbound inventory and products for efficient staging and put away. Storage areas should be designed with SKU velocity in mind with automation tools that have predetermined the slotting strategy, bin sizes, and replenishment cycles. Be mindful of the human traffic and number of footsteps to access production/assembly areas. At the heart of the layout should be a detailed inventory management plan managed with a WMS. 

    5S – “The Toyota Way”

    It’s not old school, it’s ‘the’ school. Sort, Streamline, Shine, Standardize, Strive, and the 6th S is Safety. These principles of LEAN Six Sigma manufacturing can be quickly incorporated into your existing warehouse operations. In fact, these tasks should become cultural, with every employee in sync with the processes that create efficiency. Standardization is an area that lends itself to machine learning and automation tools. 

    Know Your Staffing Requirements

    Labor management planning is essential for productivity and cost management. Warehouse managers are better equipped when they have specific productivity, quality, and throughput targets that are measured and monitored daily. Labor management is a data-driven exercise that requires effective leadership techniques and communication channels.  

    Technology Gaps and Automation Strategies

    Identify the gaps in your current technologies for warehouse management with an eye toward automation. 

    “There’s a time and a place for automation when a business reaches a certain scale that requires it, especially to try to eliminate repetitive, non-value-added activities.” Suggests Nick Pellegrino, COO, Boxzooka, Multichannel Merchant.

    The time, cost, and effort of implementing new technologies and new processes to optimize your warehouse can deter you from moving ahead. A roadmap with a budget and an ROI will take some of the risk out of implementing new tools. 3PLs with multi-client facilities are constantly examining new tools for more efficient store, pick, pack, and ship processes. We’re 30 years into barcoding and scanning for accuracy, and there is a long list of choices for put to light, pick to light, voice picking, robots that follow pickers, goods-to-person robotics, and automated storage retrieval systems, to name a few.   

    Data-Driven Decision Making

    “In God We Trust, All Others Bring Data.”  

    Supervisors, managers, leaders, and all employees need data to support their suggestions and plans for optimization. The days of “gut feel” decision-making and “we’ve always done it that way” attitudes are not productive management tools. Consider the large number of tools that might help you manage your facilities. Inventory management tools, WMS, TMS, labor planning tools, forecasting tools, intelligent slotting tools, quality assurance processes, regional distribution analyses, space allocation tools, and inventory density monitors – with so many choices, management teams need to be disciplined in choosing and using the best tools for their shop. 

    Supply Side Strategies

    Finally, do you have a handle on the supply-side equation and the flow of products into your building? Being active in these upstream activities with vendors, transportation providers, clients, and suppliers is equally important to keeping your warehouse efficient. The sequencing of inbound materials to be able to store, stage, and assemble outbound products is essential. Warehouse optimization is the essential link between supply and demand in your business.    

    Conclusions

    We’ve highlighted a handful of techniques to help optimize warehouses. As the industry becomes more integrated with new forms of technology and automation tools, warehouse management experts will keep finding more efficient means to operate their facilities. Having the right blend of human-integrated automation systems is ultimately the quest for improving customer satisfaction and maintaining a competitive edge in the marketplace.  

    By Tom Behnke

    Categories
    Fulfillment

    Making Sure Your Fulfillment Partnership Doesn’t End in Divorce

    A man and woman are unhappy.

    In the logistics industry, we have a saying, “you date your transportation partners, but you marry your 3PL fulfillment partner.” There’s a lot of truth in this analogy. Perhaps we can humor you with the many ways that finding a 3PL is similar to heading to the altar – metaphorically. 

    The dating process involves researching, screening, and talking with different potential partners, with Google being the Hinge or Bumble equivalent, right? Search for the top ten 3PLs or the fulfillment companies in your neighborhood. How’s their website? Do they have positive reviews? Do any of your friends know them? Can you get a referral, or is it going to be a blind date? 

    Now you’re ready to reach out, make contact, fill out the web form, and wait for it, boom! You get a canned email, a voicemail – or five, and the dating game begins. Who makes the best first impression? Do they care about your business? Are you also being screened or qualified? Are they too sales-y? Have you checked their LinkedIn profiles and determined if they’re mature or inexperienced? And the ones that don’t contact you, was it something you said (or something you didn’t explain clearly about your business?) 

    How’s the analogy so far? Bear with us. 

    After a few days of back and forth, it’s time for the first date. This is the test now. Face to face (or zoom to zoom). Are you meeting with the people you started with? How’s the neighborhood? Do they keep a clean (ware)house? What about the folks who will be doing the work? Can you visualize a future together? There are so many questions, and at some level, you need to have a good gut feeling about this relationship. You need a partner who cares but who can also manage the challenges that will present themselves. Fulfillment naturally has its challenges.  

    There’s no doubt you have put together a roster of potential suitors, so now it’s time to boil it down to your favorite partners and create a scorecard. Financially stable? Check. Good people? Check. Champagne pricing for your beer budget? Will they take good care of the rest of your family (employees)? This is an important decision. Let the negotiation (aka the first fight) begin. We’re officially dating now.  

    Time for the prenuptial agreement, rather, the contract. Are these terms reasonable? There’s a lot of expense for this marriage ceremony, and we can’t afford to have it go south. Can we finalize the marriage without missing a day of work? Of course we can; everything is going to be great together!

    Let the honeymoon begin, starting with the reception (the kick-off meetings.)  

    We’re getting started on the right foot and getting along, right? Any signs of cold feet? Are we having problems already, or so far, so good? And our hopes are high for a stable, mutually gratifying relationship for years to come (forever, maybe?)

    And then we have a bump in the road. We never knew that your team was (fill in the blank) not available on weekends. Can we work through these issues together? Where’s that great dashboard we were promised? Where are my B2B orders? Why is this stock not available? Are you not processing returns? Do we need to escalate these problems, or do we need counseling or mediation?  

    We’re learning things about each other that we didn’t see when we first met. We hoped to grow old together (at least for five years) and feel content. We thought we would be in tune with each other’s needs. Our relationship may be boring, but is it effective? 

    OK. Let’s pull out the agreement and talk about the “D” word. It’s time to separate. Who negotiated these terms? Let’s not make this any harder than it already is.  

    Hard to believe we’re going to need to “get out there again” and start dating other 3PLs. But we can’t give notice until we’ve got our next partner lined up.  

    Time to formally give notice.  

    Whew, we killed that analogy but with the intent of dramatizing some of the things that can go wrong in relationships with fulfillment providers. Picking a new 3PL for your e-commerce fulfillment needs is important and should be treated with respect for the realities of life in the logistics arena.  

    To make sure the next relationship with a 3PL fulfillment provider doesn’t end in an ugly and premature breakup, it’s important to know extremely well (i.e., your own business), be able to clearly articulate the needs of your business, and properly vet the 3PL’s ability to fulfill those needs. Consider a checklist of your requirements and ensure those requirements are not only addressed in the negotiations but also in the ultimate agreement or a written statement of work signed off on by both parties to ensure everyone’s on the same page. 

    By Tom Behnke

    Categories
    eCommerce

    Ecommerce Quandary, Fixing the Returns Problem

    Someone hands packages to be returned to a worker.

    Ecommerce is a blessing and a curse in the world of retail. While it’s played a key role in the overall success of retail in recent decades, it’s also saddled the industry with a growing returns problem. For every percentage growth in sales, more items are returned by customers.

    As the 2023 holiday season’s returns tallies become more clear, we’re reminded again of the importance of having a good plan in place to limit the negative financial impact that returns impose. Holiday returns for 2023 were expected to total about $148B, according to the National Retail Federation, NRF. That’s compared to $171B for the 2022 holiday season, $151B during the 2021 holiday season, $101B in 2020, and about $100B for the 2019 holiday season.

    Returns related to the holidays seem to be on the decline for the first time since the pandemic, which is good news, but that doesn’t tell the whole story. Before COVID and the lockdowns completely shifted consumer buying habits in 2019, retail returns for the year stood around $309B, 8.1% of total retail sales. Returns hit their high watermark in 2022, more than doubling the 2019 number, at $816B or 16.5% of sales. 2023 saw the first decline in total returns in years, at $732B or 14.5% of total retail sales.

    Despite that recent decline, the cost burden isn’t shrinking, leaving many retailers to find ways to reverse course.

    The Pandemic Effect

    Nearly four years ago to the day, the pandemic and the multiple lockdowns took their big swing and changed things forever. As terrible as it was, it was a boon for ecommerce. Lockdowns and distancing turned people away from bricks and mortar to ecommerce, the safest option for in-person shopping.

    Prior to Covid, retail growth in 2019 stood around 3.5%, jumping to 7.6% the next year, then 14.4% in 2021, and back to 7% in 2022. Growth in 2023 was expected to drop again to somewhere between 4 and 6%.

    The lasting effect of the pandemic on the retail universe is most reflected in ecommerce, as millions of consumers adopted online shopping. This created a very large new group of loyal ecommerce customers; they won’t be giving up this new-found ease of shopping any time soon, and they’ll keep the returns conundrum rolling for years to come.

    Returns have always been a negative in ecommerce, the more we shop online, the more likely it is we’ll receive an item that doesn’t fit, or just doesn’t meet the “mark” since we couldn’t try it on or try it out. 

    Tightening Returns Policies to Lessen the Blow

    Returns are no longer a seasonal endeavor, with the biggest hit coming during the holiday season. Today, returns must be viewed as a year-round problem, answered with an “always-on” business strategy.

    For every $1B in sales the average retailer lost $165M in returns in 2022, a figure that is ever-growing. During the pandemic, many eased returns policies. Then, as the emergency started to fade, retailers started looking for ways to recover some costs from returned items. The expense of accepting a returned item can be more than the resale potential of that item. Shipping costs also certainly eat up a major piece of that value. Then, add the cost of manpower to process those returns and other key actions within the returns pipeline; it should come as no surprise that retailers are looking at all avenues to right-size this problem.

    About 58% of retailers moved to “returnless” or “keep it” models for their returns. Others have put fees into place to cover some of those costs. Some are offering store credit instead of refunds, while others are asking customers to bring returns back to the physical store instead.

    All of this has to be done while keeping customer loyalty the overriding priority. Putting more strict policies into place has to be done in a way that doesn’t alienate customers. The good news is that, in the retail world, customer loyalty isn’t exclusive to a restrictive returns policy.

    Maximize Returns Operations, Lower Costs

    One thing above all others stands out as far as preserving the value of a returned item. Moving returned items through the system quickly and back into stock for resale is vital here. Retailers that treat returns with the same urgency as outbound orders will realize the benefits.

    For so many, this can be difficult at best. That’s why having a great 3PL partner, one tasked to manage returned goods and managing the process in an expedited manner, is absolutely essential. Streamlining the process in a way that reduces transportation costs and accelerates the return-to-market cycle should be the ultimate goal.

    This is where the expertise and experience of strong 3PLs like Boxzooka can make all the difference, getting rid of the hassle and decreasing the negative cost. But there are plenty of simple things any ecommerce company can do today:

    • Be prepared: Plan for the influx; being prepared is key to success, especially during the hefty returns season after the holidays. It’s never too early to plan and make sure the returns process is clear and efficient, which can include dedicated teams to handle returns, clear returns policies, and a streamlined system for processing returns. 
    • Pre-empt Returns: Provide tools and information that reduce the chance an item will be returned in the first place. Things like online “sizing” tools, customer feedback with reviews about sizing, sizing charts, and plenty of product imagery as well can reduce the chance a customer’s order won’t “meet the mark.”
    • Analyze the data: Understand the trends! Knowing why something is being returned in the first place can lead to discovery when data is analyzed in a way that identifies patterns and trends. This can allow retailers to take additional steps in a customized approach.
    • Communicate with customers: Today’s shoppers increasingly want transparency from retailers, especially during the returns process. Keeping them informed and knowing what to expect goes a long way in making up for fees or other policies meant to reduce cost burden.
    • Automate: Streamlining the returns process with the use of automation can be a major aid to staff. Simple tools like barcode scanners, RFID tech to track returns, automated messaging to keep customers in the loop, and tools to analyze data and trends, can be an ecommerce retailer’s best friend.
    • Find New Opportunities: Ecommerce companies should constantly evolve by finding new opportunities to improve the customer experience. Whether it’s new technology or a new concept, be in the know so you can leverage the latest and greatest!

    Returns are, no doubt, a significant challenge, especially after the holidays. But, with the right approach that addresses this as a year-round problem, it can be a great opportunity. For ecommerce retailers that are prepared, are constantly looking for trends and new discoveries, communicating/updating customers inside the returns process, and automating where it makes sense, tackling the returns problem and ultimately reducing the cost burden is within reach.

    Most importantly, focus on the relationship you’re building with your warehouse fulfillment center or 3PL. They really are your secret weapon!

    It won’t be long before we’re in the midst of the ramp-up to the 2024 holiday season. The time to review your returns protocols, review the 2023 data/trends, and build a more efficient system for the next season is now!

    By Tom Behnke