The global eCommerce market has shown significant growth in the last decade, and this exponential growth has been further catalyzed by COVID. The good news is that the eCommerce market continues its rapid expansion.
A research report by Research and Markets forecasts that the eCommerce market shall reach around 6.07 trillion USD by the end of 2024. This rapid growth will be driven by factors like increased use of mobile apps, growth of third-party logistics, cross-border eCommerce growth, and the use of modern technologies like AR and VR.
But, this growth can also become a cause of concern for eCommerce business owners if the entire operation is not handled efficiently and that’s where warehouse management solutions come in.
Modern warehouse management systems (WMS) are powered by the latest innovations that help eCommerce business owners maintain their operational efficacy. But that’s not the only purpose served by a good WMS.
There are multiple ways in which WMS solutions help eCommerce businesses and that’s what this post is all about. If you are a budding enterprise owner, then continue reading to know why a good WMS is mandatory for sustaining eCommerce businesses. Let’s start.
What is eCommerce Warehouse Management?
E-commerce warehouse management refers to the entire process of handling and managing the storage, movement, and delivery of products. Right from receiving new products to tracking product delivery, good warehouse management covers all the basic activities of an online retail business.
With the strategic implementation of technical solutions and trained professionals, good warehouse management can become the backbone of a successful online business.
Technical solutions here typically refer to warehouse management solutions which include the use of advanced software systems. Coming up next are the different ways in which these systems are proving helpful for eCommerce enterprise business owners.
#1 Order Picking
One of the biggest perks of using WMS is streamlining one of the vital phases in the order fulfillment process – order picking. Advanced WMS can guide warehouse staff directly to the right aisle and to the right products.
They don’t have to waste any time navigating the whole warehouse in search of ordered items. Faster and more accurate order picking also means faster packing and reducing the overall time taken in order fulfillment.
#2 Reduction in Inventory Complexities
Another way in which a WMS proves extremely helpful is by reducing complexities in inventory management. The growth of an eCommerce business means an increase in orders, an increase in products and other related items like packaging items, logistics, etc.
Advanced WMS are equipped with tools that offer real-time inventory visibility. With the help of a WMS, business owners can keep track of hundreds of products, manage and monitor stock levels, and prevent stock-outs or overselling.
In short, an eCommerce business with a robust warehouse inventory management solution can bring more transparency, accuracy, and increased efficiency in business operations. It also results in better decision-making.
#3 Multi-channel Integration
Modern eCommerce businesses aren’t restricted only to typical websites. Online shopping in this era means having a global online presence through multiple channels in which social media plays a pivotal role.
To keep up with this multi-channel selling, enterprises need a unified solution that will help them in the proper coordination of inventory across all channels and will evade any discrepancies. Once again, WMS come to their aid as these systems offer integration options that enable seamless integration of multiple sales channels into a single place.
Through this, enterprises can ensure that the same data is shared across different channels and consistency is maintained in terms of product information, regardless of consumers’ shopping platforms.
#4 Proper Management of Returns and Exchange
Like every coin online shopping too has two different sides. It does offer facilities and conveniences, but it also brings certain hassles and product return and exchange is one of those hassles.
Careful handling and management of returned and exchanged items can become cumbersome as warehouse staff needs to inspect them, label them, make changes in the inventory, and then reintroduce them.
But a good WMS can help handle that too. With the help of warehouse management systems, staff can verify guidelines for returned items and cross-check with the same. They can take informed decisions and can update inventory and proceed accordingly.
#5 Analytical Solutions with Valuable Insights
We are all well aware that data is the true treasure in the digital world. Businesses today heavily rely on and thrive on data. This again, is one another great help offered by a cutting-edge warehouse software system.
Most advanced systems today come packed with AI and ML algorithms. Moreover, they also offer advanced analytical tools with which eCommerce business owners can gain valuable insights like overall time taken in order fulfillment, utilization of warehouse space, most frequently ordered products, etc.
Such data can become a decisive factor in augmenting the success of an online retail business. These insights will not only help business owners in making informed decisions but will also help in increasing operational efficiency through proper optimization.
#6 Regulatory Compliance
Last but not least, WMS proves a great help to eCommerce businesses in the maintenance of regulatory compliance. How? There are certain eCommerce businesses that deal with products that are subjected to certain standards and regulations, especially perishable items like food products and medicines.
In such online stores, a WMS helps with:
- Proper labeling and classification of products
- Strict and exact traceability of batches and lots
- Management of goods through expiration dates
- Thorough documentation of handling procedures and accurate record generation
- Incorporation of automated compliance checks, especially during delivery of restricted items like alcohol
Take Away
There’s no doubt in it that eCommerce has redefined convenient shopping for customers. Online stores have made shopping an omni-doable task – they can do it anytime and anywhere.
But with the perks come the need to meet the growing challenges as well and eCommerce business owners can do so with the help of state-of-art warehouse management system.
In this constantly and rapidly changing dynamics of the digital landscape, good warehouse inventory management systems solutions are helping online retail store owners to focus on precision, streamline operations, meet customer demands with utmost accuracy, and sustain their success through scalability and adaptability.