UPS offers a host of services to ensure that your packages are delivered quickly to customers. Small improvements in which service you pick can have a big impact on customer experience and profitability, so in this guide we’ll walk you through your options and how to make the right choice for your business.

What is UPS 2nd Day Air?

As customer expectations for fast shipping increase, services like UPS 2nd Day Air gain prominence. UPS 2nd Day Air is an alternative for businesses that require fast, but not overnight delivery. It’s simple – slow delivery speeds blunt online store growth because products with slow shipping are added to carts less frequently, and their carts are abandoned more often than products that ship quickly. A 2023 Hanover Research study found that 86% of online shoppers see 2- to 3-day delivery as the baseline, and 63% say they would switch retailers if they could not receive their items within this timeframe.

UPS 2nd Day Air is one of a few expedited shipping options from UPS, and they describe it as their “economical option for shipments that do not need overnight service”. Designed to meet domestic shipping needs across the continental United States and Puerto Rico, 2nd Day Air ensures that a package will arrive at its destination in two business days but the ‘type’ of 2nd Day Air you choose will affect the delivery time.

UPS 2nd Day Air provides day definite delivery; ensuring packages arrive within a specified timeframe. But there are two different types of 2nd Day service – standard service and AM. When someone absolutely needs an item first thing in the morning, you need to spring for the much more expensive 2nd Day Air AM. Without 2nd Day Air AM, UPS only guarantees an end-of-day delivery time, which can of course stretch late into the night.

In addition to 2nd Day Air, UPS also offers 1-day and 3-day expedited services. The 1-day service is called UPS Next Day Air, and as you can imagine the 3-day service is called UPS 3 Day Select.

Benefits of Using UPS 2nd Day Air

UPS 2nd Day Air is a popular shipping option for businesses that need to deliver products quickly and efficiently. Here are some benefits of using UPS 2nd Day Air:

• Fast Delivery: UPS 2nd Day Air guarantees delivery by the end of the second business day, making it an ideal option for businesses that need to deliver products quickly. This ensures that your customers receive their orders promptly, enhancing customer satisfaction and loyalty.
• Cost-Effective: Compared to overnight shipping, UPS 2nd Day Air is a more cost-effective option. It allows businesses to save on shipping costs while still providing expedited delivery. This balance between speed and cost can be crucial for maintaining profitability in a competitive market.
• Reliable: With UPS 2nd Day Air, you get the peace of mind that comes with guaranteed delivery. UPS guarantees delivery within two business days, ensuring that your packages arrive on time and reducing the risk of delays that could impact your business operations.
• Flexible: UPS 2nd Day Air offers a range of shipping options to meet different needs. Whether you require morning delivery, afternoon delivery, or residential delivery, UPS has you covered. This flexibility allows businesses to cater to various customer preferences and special delivery instructions, enhancing the overall shopping experience.

UPS 2nd Day Air Delivery Times

UPS 2nd Day Air delivery times vary depending on the destination and the time of day the package is shipped. Here are some general guidelines for UPS 2nd Day Air delivery times:

• Business Days: UPS 2nd Day Air delivery times are based on business days, which are Monday through Friday and do not count the date of shipment. This means that packages shipped on a Friday will typically be delivered by the end of the day on the following Tuesday.
• Delivery Begins: Delivery begins at 10:00 am, and the first packages are typically received by 10:30 am. This early start ensures that businesses can receive their shipments promptly and begin processing them without delay.
• Afternoon Delivery: For those who prefer later delivery times, UPS 2nd Day Air offers afternoon delivery, with packages typically arriving by 4:30 pm. This option is ideal for businesses that operate later in the day or for customers who are not available in the morning.
• Residential Delivery: UPS 2nd Day Air also caters to residential delivery needs, with packages typically arriving by 7:00 pm. This ensures that customers who are not home during the day can still receive their packages in the evening.

Overall, UPS 2nd Day Air is a reliable and cost-effective shipping option that offers fast delivery times and flexible shipping options. Whether you need to meet tight deadlines or provide convenient delivery times for your customers, UPS 2nd Day Air has the solutions to meet your needs.

How Much Does Shipping UPS 2nd Day Air Cost?

Cahoot’s internal shipping metrics show that UPS 2nd Day doesn’t come cheap – in fact, we observe that it’s often roughly two times as expensive as UPS Ground.

If you’re used to paying $8 or $9 to ship your packages via Ground and seeing them take a week to deliver, 2-day delivery is going to cost you somewhere in the upper $10 dollar range. In the hyper-competitive ecommerce world, an extra $5-10 in shipping costs can often be the difference between making and losing money on an order.

UPS 2nd Day Air AM balloons the cost of shipping far beyond the standard version of 2-day. Our data shows that the AM option nearly doubles the cost of standard – so it often comes in at nearly 4 times more expensive than UPS Ground. To us, the small added benefit of an early delivery won’t often justify the large added cost.

How to Ship Fast Without UPS 2nd Day Air

To quickly recap – customers expect fast shipping, so you need to offer it to boost growth. However, fast shipping is prohibitively expensive. If you’re like the vast majority of ecommerce merchants and can’t eat $10 extra in shipping on every single item, you need a better way.

The solution to this riddle is to ensure that you always have inventory close to the customer so that UPS Ground delivers in 1- to 2-days without the extra cost of 2nd Day Air – many call this a “distributed fulfillment strategy”. Typically, this means ensuring that you never ship farther than Zone 4, and it requires ~4 fulfillment locations strategically placed throughout the United States. This simple principle, though, is anything but simple in execution.

Here’s the three ways that merchants can adopt a distributed fulfillment strategy:

1. Open Multiple Fulfillment Centers: merchants can open multiple US fulfillment centers and manage the four walls themselves. While having control may seem appealing, there’s never been a worse time to try to stand up merchant-operated fulfillment. Warehouse rents are hitting record highs, and if you can even find people to work for you, you’ll have to pay them $29.00 per hour to compete with Amazon’s rates. This strategy is also time-consuming and risky – you’ll spend countless managerial hours on operations instead of selling, and you’ll have to tie up significant capital.
2. Marketplace Fulfillment Services: Amazon and Walmart offer their own in-house fulfillment networks; Amazon FBA and Walmart Fulfillment Services, for sellers on their platform. They enable fast shipping nationwide, and crucially, they allow vendors to place Prime Badges and Walmart TwoDay tags on their listings to boost visibility and conversion. While attractive, these solutions come with significant drawbacks. They’re designed for small products, so FBA is much more expensive for large items, while Walmart doesn’t accept them at all. Additionally, they’ll only solve your fulfillment needs for the marketplace itself. Amazon FBA’s multi-channel solution, Amazon MCF, is significantly more expensive than FBA, while WFS only works for Walmart orders.

   

3. Third-Party Logistics Companies (3PLs): Your last option is to outsource fulfillment to one 3PL with national fulfillment services, or to multiple single-location 3PLs. The best 3PLs will have 10 or more locations across the United States, so they can strategically place your inventory right near your customer base. Modern 3PLs designed for ecommerce also have built native integrations with all major marketplaces and shopping carts, so you can use one provider for all of your fulfillment needs. Fulfillment costs will vary between 3PLs, though, and not all of them can meet the strict SLAs needed to win the Buy Box on every marketplace. Be sure to use something like a 3PL request for proposal (RFP) template to get an apples to apples comparison.

Cahoot Enables 2-day Shipping at Ground Rates

Cahoot’s nationwide network of over twenty warehouses provides affordable national ecommerce order fulfillment for ecommerce merchants. Thanks to our dense network, we’ll strategically distribute your inventory so that you reach 99% of the country in 2 days but always pay low ground rates.

Unlike other providers, Cahoot has the flexibility to upgrade existing merchant-owned warehouses (if you have them). We’ll analyze your existing network and customer base, then add a few locations of our own to seamlessly extend your network into a nationwide footprint. With this approach, you can continue to get value out of your existing assets while delighting your customers and your bottom line with affordable fast shipping.

Getting started with Cahoot is fast and easy – with pre-built integrations for major ecommerce channels like Amazon, Walmart, Shopify, and BigCommerce, we can get merchants started in as little time as it takes to send us your inventory.

Talk to one of our experts today and explore how we can be the key that unlocks the next level of your profitable ecommerce growth.

Frequently Asked Questions

What is UPS 2nd Day Air?

UPS 2nd Day Air is a shipping service that guarantees delivery within two business days.

What Does 2 Business Days Mean?

UPS counts standard week days as a business day. This means a package picked up on Friday will deliver by Tuesday end of day.

What is the Package Weight or Size Limit?

UPS 2nd Day Air shipments must be 150 lbs or less. Packages should be no more than 119 in long or 165 in combined length plus girth dimensions.

Does UPS 2nd Day Air offer Saturday Delivery?

UPS 2nd Day Air offers Saturday delivery if packages are picked up on Thursday by UPS.

If you’re shipping large items, then you know the pain of high storage, handling, fulfillment, and especially shipping costs eating up your margin. While you’ll always pay more to ship a chair than a pen, you shouldn’t resign yourself to eating sky-high rates. With higher shipping costs come larger opportunities to save money; cutting a few dollars of cost off of each order goes straight to your bottom line.

In this article, we’ll cover three of the top ways that you can reduce your cost while shipping heavy and/or large items. Implement them and watch your profit jump and headaches melt away!

Understanding Heavy Item Shipping

Heavy item shipping refers to the transportation of goods that exceed standard weight and size limits. These items require specialized handling, equipment, and logistics to ensure safe and efficient delivery. Whether you’re shipping industrial machinery, medical equipment, or large furniture pieces, understanding the nuances of heavy item shipping is crucial for minimizing costs and maximizing efficiency.

Heavy vs Large Packages

First, we need to make a distinction between heavy and large items. Often large items are heavy, and heavy items are large, but that’s not always the case. When you ship heavy packages, it’s crucial to understand the specific rules, limitations, and pricing options of different carriers to ensure shipping cost-effectiveness and compliance. Improper shipping and handling can also include additional surcharges, double penalizing shipping heavy items. Shipping carriers have specific guidelines and weight thresholds that classify items as heavy, and understanding these definitions can help you choose the right shipping method and carrier.

Definition of Heavy Items in Shipping

Carriers define packages as Heavy if the package weighs more than their normal weight range. For example, UPS charges additional fees for packages weighing more than 70 lbs (31.75 kg), and their maximum allowed parcel weight is 150 lbs.

Definition of Large Items in Shipping

Carriers define packages as Large if the package’s size is more than their normal allowed size range. For example, FedEx’s Large package size starts at a girth greater than 130 inches, and their maximum allowed package length + girth is 165 inches.

Types of Heavy Items

Heavy items typically include furniture, machinery, tools, and other items made of wood or metal. These are typically bulky goods that require special handling and care.

Importance of Proper Shipping for Heavy Items

Proper shipping of heavy items is crucial to ensure safe and efficient delivery. Improper handling and transportation can result in damage to the goods, injury to handlers, and increased shipping costs. Choosing a reliable shipping carrier that specializes in heavy item shipping and follows strict safety protocols is essential. By investing in proper packaging, using heavy-duty packing tape, and selecting the right shipping method, you can minimize risks and ensure your heavy items reach their destination in perfect condition.

Freight (LTL) Shipping Options

Freight shipping is a cost-effective way to transport heavy items over long distances. There are several freight shipping options available, each offering unique benefits and services tailored to meet the needs of shipping large and heavy items. For items that are too heavy to ship via parcel, freight shipping is the best option.

Overview of Freight Shipping Services

Freight shipping services offer a range of benefits, including:

• Cost-effectiveness: Freight shipping is often cheaper than parcel shipping for heavy items. By consolidating shipments and using specialized equipment, freight carriers can offer competitive rates for transporting large and heavy items.
• Flexibility: Freight shipping services can accommodate a wide range of goods, including oversized and heavy items. Whether you’re shipping machinery, equipment, or furniture, freight carriers have the expertise and resources to handle your shipment.
• Reliability: Freight shipping services provide tracking and monitoring to ensure safe and efficient delivery. With advanced logistics and real-time tracking, you can stay informed about the status of your shipment and ensure it arrives on time.

Some popular freight shipping services include:

• DHL Freight: Offers a range of freight shipping services, including ocean freight and air freight. DHL Freight specializes in international shipping and provides comprehensive solutions for transporting heavy items across borders.
• UPS Freight: Provides freight shipping services for heavy items, including machinery and equipment. UPS Freight offers a variety of shipping options, including LTL (less-than-truckload) and FTL (full-truckload) services, to meet your specific needs.
• FedEx Freight: Offers freight shipping services for heavy items, including furniture and oversized goods. FedEx Freight provides reliable and efficient shipping solutions, with options for expedited and standard delivery.

When shipping heavy items, it is essential to choose a reliable freight shipping service that meets your specific needs and budget. Be sure to compare shipping rates, weight limits, and express services to find the best option for your heavy item shipping needs. By selecting the right freight carrier, you can ensure your heavy items are transported safely and cost-effectively.

Distribute Inventory to Reduce Shipping Zones

To state the obvious, the farther you’re sending a package, the more you’ll be charged. Within the continental United States, shipping distance is governed by Zones. Short trips will be designated Zone 2, while shipping something across the country will usually be designated Zone 8.

If you’re fulfilling out of just one warehouse, you have no choice but to routinely ship to Zones 5 and up, which is especially costly with large or heavy packages. Even with two warehouses, much of the country will be outside of the low-cost Zones 2 & 3.

The simple trick is to ensure that you always have inventory close to the customer so that every shipment originates from Zone 4 or less; many call this a “distributed fulfillment strategy”. It requires 3 to 4 fulfillment locations strategically placed throughout the United States. Cutting your average shipped-to zone will drive savings straight to your bottom line.

Distributed fulfillment also comes with the enormous added benefit of enabling fast ecommerce order fulfillment – after all, if your product isn’t shipping far, then it won’t take more than 1 or 2 days to get to the customer. You can stop worrying about using extremely expensive services such as UPS 2nd Day Air and pay ground rates for customer-pleasing fast delivery.

This simple principle, though, is anything but simple in execution.

Based on Ground Shipping speeds

If you already have one warehouse, then it can be tempting to take it upon yourself to open 1-2 more US fulfillment centers across the country. While maintaining control of your customer experience is appealing, there’s never been a worse time to try to stand up merchant-operated fulfillment. Warehouse rents are at record highs, and Amazon has pushed the cost of labor as high as $29.00 per hour.

If you’re a marketplace seller, then you may already be using Amazon and Walmart’s in-house fulfillment networks; Amazon FBA and Walmart Fulfillment Services. These services will solve the distributed inventory challenge for you and enable fast shipping, but they also come with significant drawbacks. They’re designed for small products, so they both significantly raise prices for large items. Walmart, for instance, charges all items with a side length of over 96 inches or a combined length and girth over 130 inches as at least 90 lb no matter their actual weight, and then they add a $25 surcharge to boot. Additionally, they’ll only solve your fulfillment needs for the marketplace itself. Amazon FBA’s multi-channel solution, Amazon MCF, is significantly more expensive than FBA, while WFS only works for Walmart orders.

Your last option is to outsource fulfillment to one 3PL with national fulfillment services, or to multiple single-location 3PLs. The best 3PLs will have 10 or more locations across the United States, so they can strategically place your inventory in the perfect position for your customer base. Modern 3PLs designed for ecommerce also have built native integrations with all major marketplaces and shopping carts, so you can use one provider for all of your fulfillment needs. Fulfillment costs will vary between 3PLs, though, and not all of them can meet the strict SLAs needed to win the Buy Box on every marketplace. Be sure to use something like a 3PL request for proposal (RFP) template to get an apples to apples comparison.

Ship Heavy Items with the Right Carrier

Not every carrier is created equal when it comes to shipping heavy items, and relatively small adjustments in your package size and weight can have big implications when it comes to choosing the most cost-effective option.

FedEx’s guidelines on how to ship oversize items detail that they add an oversize shipping fee when packages have a girth of more than 130 inches. Note that if a package is over 150 lbs, or if its combined length and girth is more than 165 inches, then FedEx will classify it as freight and apply a completely different set of rules.

UPS governs its large items a bit differently. It will designate a package as “Over Maximum Size” when its length plus girth combined exceeds 165 inches, and charge additional fees. UPS charges additional fees for packages over 70 lbs and has a maximum package weight is 150 lbs.

Finally, USPS is less equipped to ship large packages, and thus has more restrictive rules. Their maximum size for most mailpieces is 108 inches in combined length and girth, but USPS Retail Ground has a slightly larger allowance of 130 inches. Regardless of size, the maximum mailable weight of any mailpiece sent through USPS is 70 lbs. Packages that are between 108 and 130 inches in combined length and girth are subject to a special oversized price on USPS.

These guidelines leave wiggle room for savvy merchants to optimize their shipping costs. Note that FedEx’s oversize charge only kicks in on packages with a girth of more than 130 inches, while UPS and USPS have lower limits. On top of that, the latter two’s limits are based on combined length and girth. If your package fits under FedEx’s bar for oversize, but over the bars for the other carriers, then you know that you can avoid surcharges by shipping with FedEx.

You can take it upon yourself to negotiate with the carriers separately, or if you’re using shipping software like ShipStation, you can set manual rules and rate shop to scrutinize your orders for the best rates. On the other hand, our next-gen shipping software will do the hard work for you by automatically comparing major and regional carriers against each other for each order. Without any manual intervention, the software will take quirks like differences in surcharges into account and ensure that you’re getting the best deal, every time.

Optimize Package Size

Small changes in package size can make a big difference to your final shipping cost. When you’re shipping large and oversize items, every additional pound usually adds $0.30 – $0.50 to your cost, which adds up quickly!

Package size matters because of Dimensional Weight, or DIM weight for short. Major carriers introduced DIM weight around 2015 as a way to charge more for bulky, yet light products. The calculation is fairly simple: DIM weight is equal to L x W x H of your package, divided by 139 (166 for USPS). If the resulting number is larger than the weight of the package in pounds, then the shipping weight used to calculate price will be elevated to the DIM weight.

In this way, inefficiencies in package design quickly add up to boost your shipping cost to well more than it should be.

Consider a package that is 24 x 24 x 24. This 2 ft cube package’s DIM weight is 99.45 lbs. If you’re shipping two pillows in that package, the actual weight is probably less than a tenth of the DIM weight. In that scenario, DIM weight increases your cost by $30 or more! What if you could shave 4 inches off one of the sizes by more efficiently compacting your pillows?

Those 4 simple inches cut the DIM weight all the way down to 82.88 lbs, a nearly 20% reduction. That package would fall into FBA’s “Medium oversize” category, with a shipping weight between 70 – 150 lbs. FBA’s fulfillment fee rises by $0.44 for each pound in that category, so shaving the 4 inches off of one side of the package would save you over $7 per order.

Cahoot Ships Heavy Items at Low Cost

Cahoot’s nationwide network of over a hundred warehouses provides affordable national ecommerce order fulfillment for ecommerce merchants.

We cover each of the three key pillars of reducing the shipping cost of heavy items for you:

• We’ll strategically distribute your inventory to 4+ locations
• Our next-gen shipping software automatically finds the lowest cost shipping label that meets your delivery SLA
• We work with you to shrink package size

Unlike other providers, Cahoot also has the flexibility to work alongside existing merchant-owned warehouses (if you have them). We know that many merchants with oversize goods carefully manage fulfillment themselves due to how difficult the process can be. Cahoot will analyze your existing network and customer base, then add a few locations of our own to seamlessly extend your network into a nationwide footprint.

With this approach, you can continue to get value out of your existing assets while delighting your customers and your bottom line with affordable fast shipping.

Getting started with Cahoot is fast and easy – with pre-built integrations for major ecommerce channels like Amazon, Walmart, Shopify, and BigCommerce, we can get merchants started in as little time as it takes to send us your inventory.

Talk to one of our experts today and explore how we can be the key that unlocks the next level of your profitable ecommerce growth.

Frequently Asked Questions

What is the cheapest way to ship heavy items?

This depends on the size of the item. For smaller items, USPS Priority Mail can be cost effective, and for larger items, UPS or FedEx is usually cheaper.

Are there any special instructions when shipping heavy items?

Heavy items can do more damage when moving in transit; proper packaging and dunnage help keep heavy items protected in shipping.

It has been a difficult year filled with price increases for Amazon sellers that rely on Fulfillment by Amazon (FBA), and it’s about to get even more difficult.

On August 16th, Amazon announced that for the first time ever, they will implement a Holiday Peak Order Fulfillment Fee to take effect from October 15th, 2022 to January 14th, 2023. Per Amazon, the fee will be an average of USD 0.35 per item sold using US and Canada FBA. Even in isolation, a 35 cent increase in fulfillment fees can be difficult for sellers to absorb. Considering the enormous pressure that inflation is already putting on sellers and other FBA price increases, this could be the straw that breaks the camel’s back.

How has Amazon ratcheted up the price pressure on FBA sellers this year, and what can sellers do to fight back and protect their margins?

Amazon FBA Price Increases in 2022

Amazon has raised prices across the board for FBA sellers multiple times in 2022. How do they add up?

Source: Amazon Seller Central, Cahoot analysis

Annual Amazon FBA Fee Increase

It started with annual FBA fee increases that kicked in on February 1st. Order fulfillment fees increased from 2% on the low end to as much as 12% on the high end. Sellers with items in the Small Standard categories saw increases of 8%, or $0.22 to $0.27. For small products selling under $20 or even $10, this immediately shaved off a few points of margin.

On top of that, FBA Storage Fees increased by $0.08 per cubic foot, or 10.6%. Again, this increase can shave off a point or two of margin, making enduring profitability that much more difficult.

Finally, Amazon increased Removal and Disposal Fees by over 100% for many items. For instance, a SKU between 1-2 lbs will increase from $0.35 to $0.75. Sellers don’t usually plan on having to pay for removal, but nevertheless some products will fail to sell and need to be liquidated – especially in the cutthroat environment of Amazon’s 3P marketplace. This change raises the overall cost of doing fulfillment business.

Amazon Fuel and Inflation Surcharge

Just two months later, Amazon added a 5% “fuel and inflation surcharge” on top of the previously announced price increases. This kind of surcharge was a first for Amazon, and like the previous changes it adds another ~20 to 50 cents in cost to most items. Taken together with the Q1 increases, by this point FBA had already added a dollar or more to total fulfillment costs for many items.

Amazon Holiday Peak Order Fulfillment Fee

The new fee in question, the Holiday Peak Order Fulfillment Fee, will be applied on top of both of the February price increases and the Fuel and Inflation Surcharge. It will be in effect from October 15th of this year to January 14th in 2023, so for the entirety of peak.

At an average of another 35 cents on top of the other increases, there are few, if any, items that haven’t shot up over a dollar in cost to fulfill through FBA this year. When you consider that many smaller items only cost $3 or $4 to fulfill through FBA, that’s a staggering 25%+ increase in one of the most important operational costs in one year. Sellers with small, $10 items have now likely seen over 10% more of their revenue disappear in FBA fees in just over half a year. That, unfortunately, is fatal to most sellers.

The Top Amazon FBA Alternative: Cahoot FBM

Cahoot has created an Amazon-like ecommerce order fulfillment services network that makes low cost, fast and free shipping a breeze for every eCommerce sales channel – including Amazon FBM.

Cahoot is the next generation of tech-enabled order fulfillment networks. Unlike other networks that are collections of third party logistics warehouses (3PLs), Cahoot’s innovative approach empowers merchants across the country to fulfill orders for one another. Our peer-to-peer network is a collective of highly vetted eCommerce retailers who offer up excess warehouse space and resources to provide high-quality order fulfillment to other merchants. Since they fulfill their own DTC orders, they know how important top-notch fulfillment is, and they put the same care and energy into your orders as they do for their own.

Because Cahoot is leveraging excess capacity in merchant-owned warehouses, we’re less pressured by rising warehouse and labor costs than Amazon is. As a result, costs are typically lower than what you get with a traditional 3PL fulfillment company. With a P2P network, multi-channel fulfillment with nationwide 1-day and 2-day delivery at economy shipping rates is the norm.

Still unconvinced? Here’s a deep dive into how you can make the choice between Amazon FBM vs FBA – or decide to use a mixed strategy.

Offer 1-day and 2-day shipping at ground rates or less.

Related Blog Posts

In the vast and competitive world of ecommerce, staying ahead of the game is essential for business success. Whether you’re a seasoned Amazon seller or just starting out, one of the most valuable strategies you can adopt is investing in thorough market and product research. This investment can significantly boost your online profits and help you make informed decisions about which products to sell and how to sell them. In this comprehensive guide, we will explore the importance of market and product research on Amazon and how effective Amazon product research strategies can maximize your return on investment (ROI).

Understanding the Amazon Marketplace

Amazon is the world’s largest online marketplace, offering an extensive range of products to consumers across the globe. This immense platform presents both opportunities and challenges for sellers. To succeed, you must first understand the dynamics of the Amazon marketplace:

• Competition: Amazon hosts millions of sellers, and each product category is highly competitive. Know your competition in order to carve out your niche effectively.
• Consumer Behavior: Amazon’s search algorithm, A9, determines product rankings based on various factors, including customer reviews, keywords, and sales history. Understanding how customers search for products can help you optimize your listings.
• Fulfillment Options: Amazon offers different fulfillment methods, such as Fulfilled by Amazon (FBA) and Fulfilled by Merchant (FBM). Each has its pros and cons, and your choice can impact your profit margins.
• Pricing Strategies: Dynamic pricing is common on Amazon, so keep an eye on your competitors’ pricing strategies and adjust yours accordingly.
• Reviews and Ratings: Positive reviews and high ratings can boost your product’s visibility and credibility, increasing sales.

Another valuable resource for Amazon sellers is the Amazon Product Opportunity Explorer tool. This tool helps identify new product ideas by allowing sellers to search for relevant niches and access key metrics like customer needs and search volume, which aid in making informed decisions and reducing the risk of product failure.

Market Size and Growth

Understanding Amazon’s market size and growth helps make informed decisions about your product offerings. Amazon’s net revenue has seen a consistent upward trajectory, reaching an impressive $638 billion last year. Projections suggest this figure will continue to rise 5 – 9% per quarter, driven by the ever-increasing demand for online shopping, the expansion of Amazon’s product range, and strategic acquisitions.

To gain valuable insights into Amazon’s market size and growth, sellers can leverage tools like SmartScout. This tool provides historical market share data, helping you understand the dynamics of the Amazon marketplace and identify potential growth opportunities. Additionally, analyzing Amazon’s revenue breakdown by product category can offer a more granular view of the market, enabling you to make informed decisions about your product offerings.

The Foundation of Successful Amazon Selling

Before delving into the specifics of market and product research, it’s helpful to understand why it’s the foundation of successful Amazon selling. Here are some key reasons:

Avoiding Costly Mistakes

Without proper research, you’re fundamentally operating in the dark. You may invest in products with little to no demand or are oversaturated with competition. These mistakes can result in significant financial losses. Market research helps you avoid these pitfalls by providing data-driven insights into what products will likely succeed.

Adaptation and Growth

Ecommerce is a dynamic space. Consumer preferences, market trends, and competitors’ strategies can change rapidly. By investing in research, you not only identify opportunities but also adapt to changing circumstances. This adaptability is fundamental to sustained growth in the long term.

Enhanced Decision Making

Data-driven decision-making is the hallmark of successful Amazon sellers. With the correct information at your fingertips, you can make informed choices about product selection, pricing strategies, and marketing efforts. This increases your chances of success and profitability.

The Benefits of Market Research

Amazon market research involves analyzing the Amazon marketplace as a whole to identify trends, opportunities, and gaps in the market. Here’s how investing in Amazon market research can help sellers:

• Identifying High-Demand Products: By analyzing search trends and historical data, you can identify products with high demand but limited competition. Tools can also help estimate sales to identify lucrative opportunities in these niches.
• Evaluating Competition: Market research helps you assess the strength of your competition. You can identify weaknesses in their offerings and develop strategies to outperform them.
• Pricing Insights: Analyzing price trends can help you set competitive and profitable product prices.
• Understanding Customer Needs: By examining customer reviews and feedback, you can gain insights into what customers like and dislike about existing products in your chosen niche.
• Seasonal Trends: Market research allows you to identify seasonal trends and adjust your product offerings accordingly.

Understanding Market Trends

Understanding current market trends is one of the first steps in effective Amazon market research. Market trends encompass consumer preferences, product demand, and industry shifts. Analyzing sales trends helps identify market dynamics and emerging opportunities. Here’s how to harness this knowledge:

Track Seasonal Variations

Many products experience seasonal fluctuations in demand. You can optimize your product listings and marketing efforts by tracking these patterns. For example, if you’re selling holiday-themed items, you’ll want to prepare well in advance to capture peak seasonal demand.

Analyze Historical Data

Historical sales data is a goldmine for understanding market trends. It can reveal long-term patterns and help you forecast future demand. Analyzing this data can guide your inventory management and product selection strategies.

Competitor Analysis

Competitor analysis is another critical aspect of Amazon market research. Understanding your competitors can give you a competitive edge. Here’s how to go about it:

Monitor Sales Volumes: Keeping an eye on your competitors’ sales volumes can provide valuable insights into market demand. It’s also important to understand their gross sales to formulate better strategies based on their monthly revenue, average daily orders, and unit prices. This information can help you identify trends and adjust your approach accordingly.

Identify Key Competitors

Start by identifying your main competitors in your niche. Look for sellers with similar products and target demographics. Tools can provide a comprehensive list of competitors.

Analyze Pricing Strategies

Study your competitors’ pricing strategies. Are they pricing lower to capture market share, or do they maintain premium pricing? Understanding their pricing approach can help you position your products effectively.

Monitor Sales Volumes

Knowing how well your competitors are performing can inform your own strategies. If a competitor is consistently outselling you, it’s worth investigating their marketing tactics, product listings, and customer reviews.

Product Research: Finding Profitable Products

While understanding market trends and analyzing competitors are valuable components of Amazon’s success, product research is equally important. Utilizing a product research tool can assist in finding profitable products by analyzing competition and tracking market trends. Here’s how to identify profitable products:

Niche Selection

Start by selecting a niche that aligns with your expertise and interests. Look for niches with a balance between demand and competition. Avoid overly saturated markets where it’s challenging to stand out.

Identify High-Demand Products

Use tools like Algopix to identify high-demand products with the potential for consistent sales. These tools can also help generate a list of potential product ideas tailored to specific business criteria. Look for products that are evergreen and not subject to seasonal fluctuations.

Evaluate Profit Margins

Calculate potential profit margins by considering the cost of goods, Amazon fees, and shipping costs. Ensure that your chosen products offer a healthy profit margin to sustain your business.

Check for Trends and Seasonality

Examine whether your chosen products have consistent demand throughout the year or if they are subject to seasonal trends. Seasonal products can be profitable but require careful planning.

Analyzing Customer Feedback

Customer feedback is a goldmine of information that can significantly enhance your product research efforts. By delving into customer reviews and ratings, you can gain valuable insights into customer satisfaction and pinpoint areas for improvement. This deeper understanding of your target audience can help you develop marketing strategies that resonate with their needs.

Tools like AMZScout are invaluable for analyzing customer feedback. They provide a comprehensive analysis of reviews and ratings, allowing you to identify trends and patterns. This data can guide you in refining your products and improving customer satisfaction. Additionally, engaging with customers on social media and online forums can provide further insights into their preferences and needs, helping you tailor your offerings more effectively.

Product Selection and Sourcing

Selecting and sourcing the right products is a cornerstone of successful Amazon selling. To identify profitable products that meet customer demand and can be sourced at competitive prices, you need to conduct thorough product research. Tools like Jungle Scout can be instrumental in this process, offering a comprehensive analysis of product trends and sales data.

When selecting products, consider factors such as demand, competition, and pricing. Ensure that the products you choose comply with Amazon’s policies and guidelines. Building relationships with reliable suppliers who can provide high-quality products at competitive prices is also crucial. This approach not only helps in maintaining product quality but also in securing better profit margins.

Supplier Relations and Logistics

Building strong relationships with suppliers is the first step for sourcing high-quality products at competitive prices. Clear and professional communication with suppliers ensures they understand your needs and expectations. Additionally, developing a robust logistics and shipping strategy is necessary for timely delivery to customers.

Tools like ShipStation can streamline your logistics and shipping processes. This platform helps manage orders and shipping efficiently, ensuring that customers receive their products on time. By optimizing your logistics, you can enhance customer satisfaction and maintain a competitive edge in the market.

Optimizing Product Listings

Optimizing your product listings is a continuous process that involves keyword research and customer-focused content. Here’s how it can impact your profitability:

Keyword Research

Identify high-performing keywords for your products. Understanding search volume helps gauge product demand and trends, assess seasonality, and identify profitable keywords for optimizing product listings. Incorporate these keywords naturally into your product titles, descriptions, and backend search terms. Effective keyword research and optimization can improve your product’s visibility in Amazon’s search results.

Compelling Product Descriptions

Write compelling product descriptions that highlight the benefits and features of your products. Use high-quality images and ensure that your listing is complete and informative. A well-optimized listing can lead to higher conversion rates.

User-generated Content

Encourage customers to leave reviews and answer questions on your product listings. Positive reviews and helpful answers can build trust and boost sales. Respond to customer inquiries promptly to provide excellent customer service.

Marketing and Promotion Strategies

Effective marketing and promotion strategies are critical for driving traffic to your product listings and increasing sales. To develop these strategies, consider factors such as customer demographics, product trends, and competitor analysis. Tools like Helium 10 provide a comprehensive analysis of marketing and promotion strategies, helping you craft effective campaigns.

Ensure that your marketing and promotional strategies comply with Amazon’s policies and guidelines. Leveraging social media and influencer partnerships can also boost your product’s visibility and brand awareness. By developing a well-rounded marketing strategy, you can attract more customers and increase your sales volume.

Social Media and Influencer Partnerships

Social media and influencer partnerships are powerful tools for Amazon sellers. Partnering with influencers in your niche can enhance brand awareness and credibility. Platforms like Facebook and Instagram are excellent for promoting products and driving traffic to your listings.

To maximize the benefits of social media and influencer partnerships, develop a comprehensive social media strategy that includes content creation, engagement, and advertising. Ensure that your social media presence aligns with your brand identity and messaging. Tools like Hootsuite can help manage your social media presence and engagement, making it easier to connect with your audience and promote your products effectively.

Minimizing Risks

Investing in market and product research isn’t just about increasing profits; it’s also about minimizing risks. Here are some strategies to reduce potential losses:

Diversify Your Product Portfolio

Avoid putting all your eggs in one basket. Diversify your product portfolio to spread risk. If one product experiences a downturn, others can help balance your overall profitability.

Monitor Your Inventory

Overstocking or understocking can lead to financial losses. Regularly monitor your inventory levels and adjust your orders accordingly. Consider using Amazon’s Fulfillment by Amazon (FBA) program to streamline your inventory management.

Stay Informed and Agile

Keep a pulse on industry news, changes in Amazon’s policies, and emerging trends. Be prepared to pivot your strategies when necessary. Staying informed allows you to make proactive decisions.

Conclusion

In the competitive world of Amazon ecommerce, success isn’t guaranteed, but it’s attainable with the right strategies. Investing in market and product research is a smart move that can significantly increase your online profits. By understanding the Amazon marketplace, identifying high-demand products, and thoroughly researching potential offerings, you’ll be better equipped to make informed decisions, optimize your listings, and ultimately grow your ecommerce business. Remember that continuous research and adaptation are key to staying competitive in the ever-evolving world of online retail.

Key Takeaways:

• Legacy shipping software is outdated and inefficient in today’s ecommerce world.
• Next‑gen shipping software automates fulfillment, reducing errors and improving delivery speed.
• Optimized order routing and packaging help businesses save money and maximize profitability.
• Warehouse automation boosts efficiency, helping businesses do more with fewer resources.
• Smarter carrier selection and real‑time rate shopping eliminate unnecessary shipping expenses.

Ecommerce logistics have evolved dramatically in the past two decades, and with this shift, the tools that businesses use must evolve too. Ecommerce shipping software is a powerful tool designed to streamline and automate the shipping processes for online businesses. Choosing the right ecommerce shipping solution significantly enhances operational efficiency and customer satisfaction. Legacy software, however, built for a simpler time, can no longer keep up with the growing complexities of modern ecommerce shipping, making it essential to choose the best shipping software for your business. Rising customer expectations, increasing competition, and skyrocketing operational costs have made traditional fulfillment strategies obsolete.

Enter next‑generation shipping software: a smarter, faster, and more cost‑effective solution designed to streamline operations, optimize shipping processes, and drive profitability. In this pillar article, we’ll explore the four key areas where next‑gen ecommerce shipping software is reshaping fulfillment and helping businesses thrive.

To help ecommerce merchants understand why traditional shipping software is no longer enough, we built a Next‑Generation Shipping Software Guide consisting of 4 parts to highlight what has changed between the old world and the new world, how next‑gen shipping software simplifies fulfillment operations, how it makes order fulfillment more efficient, and how it saves ecommerce businesses money:

1. Ecommerce Shipping Challenges: The World Has Changed and Traditional Shipping Software is Not Enough
2. Shipping Software for Ecommerce Fulfillment: The Next Generation of Shipping Simplified
3. Next‑Gen Warehouse Automation Software for Ecommerce: Fulfillment Efficiency
4. Save Money With Ecommerce Shipping Software: Next‑Gen Solutions

1. The Changing Landscape of Ecommerce Shipping

Two decades ago, ecommerce was a different world. Online Sellers operated on a single channel, faced minimal competition, and customers had lower expectations. Shipping was simple: businesses worked with a single carrier, operated from one warehouse, and didn’t have to worry about complex fulfillment logistics.

Fast forward to today, and the ecommerce landscape has changed dramatically:

• Sellers operate across multiple channels like Amazon, Walmart, and Shopify.
• Competition is intense, requiring fast, free shipping to stay ahead.
• Customers expect 1‑2 day delivery, forcing Sellers to distribute inventory across multiple warehouses.
• Carrier rate increases (GRIs) have made it more expensive to ship orders profitably.

With this growing complexity, businesses can no longer rely on legacy shipping software that lacks automation, intelligent decision‑making, and scalability. Next‑gen ecommerce shipping software is purpose‑built for today’s challenges, offering automated order routing, real‑time carrier rate shopping, and seamless multi‑channel integration to optimize fulfillment workflows.

2. How Next‑Gen Shipping Software Simplifies Ecommerce Fulfillment

Modern ecommerce fulfillment is no longer just about printing shipping labels; it’s about optimizing every aspect of the supply chain. Multi‑carrier shipping software allows businesses to compare rates and select the best carrier for each shipment, optimizing delivery times and reducing costs. Next‑gen shipping software simplifies fulfillment in three key ways:

Automated Order Routing & Carrier Selection

Traditional shipping software relies on manual rule‑setting, requiring Sellers to configure automation workflows manually. This process is prone to errors and inefficiencies. Next‑gen shipping software, like Cahoot, automates order routing by:

• Analyzing warehouse locations, inventory levels, and carrier options to pick the best fulfillment center.
• Selecting the most cost‑effective shipping label in real time.
• Minimizing errors and eliminating manual decision‑making through intelligent automation.

Seamless Multi‑Warehouse and Multi‑Channel Fulfillment

Today’s ecommerce businesses must operate across multiple fulfillment centers while managing orders from different marketplaces. Legacy shipping tools struggle to coordinate fulfillment effectively. Next‑gen solutions:

• Sync orders from multiple sales channels (Amazon, Walmart, Shopify, etc.) automatically.
• Ensure inventory is updated in real time to prevent overselling.
• Provide centralized tracking so businesses and customers stay informed on shipment status.

Optimized Packaging for Cost Reduction

Shipping costs are a major concern, and incorrect packaging can lead to excessive dimensional weight fees. Next‑gen software optimizes packaging by:

• Using AI‑powered cartonization to select the smallest possible box.
• Minimizing wasted space to reduce shipping costs.
• Automating packing decisions, eliminating the need for warehouse workers to make manual judgments.
• Automating international shipping processes, such as customs documentation and tax calculations, to prevent costly re‑work.

3. Boosting Warehouse Efficiency with Automation

Labor shortages and rising wages make it difficult for ecommerce businesses to scale using traditional warehouse management strategies. Next‑gen shipping software maximizes efficiency by reducing the need for manual intervention:

Reducing Manual Labor

Legacy software often requires warehouse staff to manually verify orders, select boxes, and compare carrier rates. With next‑gen software:

• Workers spend less time on repetitive tasks, reducing operational costs.
• Shipping label generation is fully automated, cutting down processing time from hours to minutes.
• Seasonal and part‑time staff can quickly onboard without extensive training, thanks to intuitive, easy‑to‑use interfaces.

Real‑Time Fulfillment Network Optimization

Unexpected delays such as warehouse disruptions, weather‑related shipping slowdowns, or inventory shortages can impact fulfillment speed. Next‑gen software helps businesses adapt in real time by:

• Identifying the best alternative fulfillment center if one location is affected.
• Re‑routing orders automatically to ensure deliveries remain on schedule.
• Reducing fulfillment downtime, keeping customers happy and operations running smoothly.
• Real‑time inventory tracking to prevent overselling and stockouts.

4. Cutting Costs and Maximizing Profitability

Ecommerce margins are tighter than ever, and reducing costs is critical to long‑term success. Next‑gen shipping software saves businesses money in three crucial ways:

Lowering Discounted Shipping Rates with Intelligent Rate Shopping

Traditional software requires businesses to set up static rules, but these don’t always result in the cheapest shipping label. By leveraging advanced algorithms, businesses can secure the best shipping rate for each order, further reducing costs. Next‑gen solutions:

• Compare carrier rates in real time, ensuring Sellers get the best deal.
• Automatically adjust shipping selections based on weight, dimensions, and distance.
• Reduce the risk of overpaying for shipping fees with dynamic optimization.

Avoiding Hidden Fees and Cost Leakages

Many businesses unknowingly lose money due to inefficient fulfillment processes. Next‑gen shipping software prevents cost leakages by:

• Eliminating unnecessary shipping surcharges through optimized package selection.
• Preventing human errors in box selection, reducing dimensional weight overcharges.
• Enhancing inventory tracking and distribution, ensuring products are stored in locations that minimize shipping costs.
• Effective inventory management ensures that products are stored in optimal locations, minimizing shipping costs and reducing the risk of overstocking.

Enabling Businesses to Do More with Fewer Resources

By automating labor-intensive tasks, businesses can reduce staffing needs and reallocate resources toward growth-driven initiatives. The benefits include:

• No need for dedicated shipping software teams to configure and maintain automation rules.
• Faster processing speeds, allowing businesses to handle more orders with the same workforce.
• Improved scalability, making it easier to expand operations without increasing costs.

Why Next‑Gen Shipping Software is a Game Changer

Ecommerce has evolved, and fulfillment operations must evolve with it. Legacy shipping software was designed for a different era; one with fewer channels, lower customer expectations, and simpler logistics. The modern landscape requires automation, intelligence, and flexibility to keep up with demand while staying cost‑effective.

Conclusion: Next‑Generation Software is Critical to Winning in the New World

We believe everything has changed in ecommerce. Amazon Prime has changed the industry in a manner comparable to how the iPhone changed society’s experience with, and access to, technology.

Prime transformed one aspect of ecommerce more than any other: shipping. However, this is the area where the least technological advancement has occurred. Legacy tools are costing Sellers time, money, and productivity on every order. In a world of competitive online marketplaces, sky‑high customer expectations, and rising costs, Sellers need software that helps them compete and win.

The future of ecommerce fulfillment is here, powered by next‑generation shipping software. By adopting these advanced solutions, businesses can streamline operations, improve customer satisfaction, and increase their bottom line. Such a tool must address key challenges of today—simplifying operational complexity, freeing up resources, and restoring margins in a competitive environment.

We believe this tool can provide you with strategic and competitive advantages in today’s complex ecommerce industry. Are you ready to make the switch? If you’d like to learn more, check out our Next‑Generation Shipping Software Guide, Part 1: “Ecommerce Shipping Challenges: The World Has Changed and Traditional Shipping Software is Not Enough.”

Frequently Asked Questions

How can I reduce shipping costs for my ecommerce business?

Reducing shipping costs requires a multi‑faceted approach:

• Negotiate rates with multiple carriers rather than relying on a single provider.
• Consider using regional carriers for deliveries within specific areas.
• Optimize packaging to reduce dimensional weight charges.
• Implement zone skipping by shipping bulk orders to carrier hubs closer to final destinations.
• Use shipping software that compares rates across carriers in real time.
• Offer local pickup options for customers in your area.
• Consider flat‑rate shipping for certain product categories.
• Learn more

Who uses shipping software?

Shipping software has features that can benefit various clients, including individual Sellers, ecommerce brands, retailers, and courier service providers. Feature‑rich software like Cahoot makes intelligent and scalable fulfillment accessible to businesses of all sizes.

What is fulfillment optimization?

Fulfillment optimization is the process of determining the best options for sourcing and order fulfillment, resulting in more efficient use of inventory and reduced costs.

How does warehouse automation software improve ecommerce fulfillment?

Warehouse automation software streamlines fulfillment by automating tasks such as order routing, shipping label generation, and inventory tracking. This reduces manual errors, increases processing speed, and optimizes carrier selection, ensuring faster and more cost-effective deliveries.

How does automated cartonization help reduce shipping costs?

Automated cartonization uses AI to determine the best packaging size for each order, reducing dimensional weight costs and preventing wasted space. This optimization leads to lower shipping fees and improved warehouse space utilization.

The best ecommerce brands and Sellers are constantly looking for new sales channels to expand their footprint. Most people think of Macy’s and its sister brand Bloomingdale’s as retailers that are heavily focused on their brick-and-mortar stores and trail well behind the likes of Amazon in ecommerce. Therefore, they are likely not the first names that come to a merchant’s mind when they consider expanding beyond Amazon. However, in recent years, Macy’s has begun to catch on to the surge in ecommerce and realizes that it represents an opportunity through which it can boost sales and revive stalling growth.

In 2022, Macy’s reported it had around 45 million active shoppers, of which 29.1 million were Star Rewards members – a sizable audience for an online seller to target. In a bid to increase the product mix that it offers, the company launched its online third-party marketplace in late 2022. Unlike Amazon’s marketplace, where nearly anyone can start selling, Macy’s platform is curated. Macy’s platform facilitates ecommerce opportunities for vendors by allowing them to manage their inventory effectively and optimize their fulfillment processes. This could be done to ensure they serve their customers with the brands and products they think will most appeal to them. If you’re reading this, it probably means you’ve been selected by them to feature your assortment – congratulations!

One of the key benefits of this 3rd Party Marketplace is its Vendor Direct Program – which allows merchants to receive orders that customers place on Macy’s website, and fulfill those orders on their own. This offers significant advantages for a couple of reasons.

Understanding 3PL and Macy’s Fulfillment Needs

What Is Third-Party Logistics (3PL)?

Third-party logistics (3PL) refers to the outsourcing of various logistics and supply chain functions to an external service provider. This can include services such as warehousing, transportation, inventory management, and order fulfillment. By leveraging the expertise and infrastructure of a 3PL provider, Macy’s vendors can delegate critical components like warehousing and order fulfillment, allowing them to focus on their core business. In essence, third-party logistics providers take on the heavy lifting of logistics, enabling Macy’s vendors to concentrate on what they do best – creating and selling great products.

Benefits of Outsourcing Macy’s Order Fulfillment

Outsourcing Macy’s order fulfillment can bring numerous benefits, including improved operational efficiency, increased customer satisfaction, and cost savings. By partnering with a 3PL provider, Macy’s vendors can tap into their expertise and technology, ensuring seamless integration with the Macy’s platform and efficient order processing. This means that orders are processed quickly and accurately, reducing the likelihood of errors and delays. Additionally, 3PL providers offer flexible and scalable fulfillment services, allowing Macy’s vendors to adapt to changing market demands and customer preferences. This flexibility is crucial in today’s fast-paced retail environment, where customer expectations are constantly shifting. By outsourcing fulfillment services, Macy’s vendors can ensure that they are always ready to meet these expectations, leading to higher customer satisfaction and loyalty.

Why is The Macy’s Vendor Direct Program Great For Sellers?

Simplified Inventory Management

As Macy’s allows Sellers to fulfill their orders independently, you do not need to send some of your inventory to a Macy’s warehouse. This is a welcome relief for Sellers who might already have sent some inventory to Fulfilled By Amazon (FBA) or Walmart Fulfillment Services (WFS), and are overwhelmed by keeping track of all these different marketplace-specific order fulfillment solutions. Macy’s allows you to manage your order fulfillment entirely on your own, just like you might be doing for your Shopify storefront, for example. This ensures that you don’t have to work with another logistics solution that is specific to a single sales channel.

Whatever The Logistics Setup, Everyone Has a Fair Chance

Amazon’s A10 algorithm for search rankings, as well as the Buy Box algorithm, both assign high preference to listings that are fulfilled by the company’s in-house FBA logistics network. Additionally, when delays or issues occur with FBA, Amazon faces no penalties – whereas Sellers fulfilling their own orders face severe penalties if they or the carriers they rely on make a mistake, including having their product listings suspended. With Macy’s, there is no such competing network that stacks the odds against you – everyone competes equally, and the brands with the best products who achieve the highest order fulfillment excellence will win.

While all this offers Sellers and their businesses operational and strategic advantages, the program still has high expectations from participating brands. Your choice of a 3rd Party Logistics Provider is a crucial factor in determining your success, and there are a few key factors to consider.

What Should You Look For in Macy’s Fulfillment Services?

Full Compliance With Macy’s Vendor Direct Fulfillment (VDF) Tech Stack

Macy’s requires that Sellers integrate with their platform via CommerceHub. Within 1 hour of a purchase order being made, Sellers must push acknowledgment to Macy’s via this integration. Also, the order must be shipped within 2 business days, and merchants must push confirmation that the order was fulfilled to Macy’s via this connection (with carrier tracking information). Your Macy’s 3PL fulfillment partner must be able to work with this configuration and ensure your orders are shipped on time. Collaborating with third-party logistics (3PL) providers allows you to streamline operations and improve customer satisfaction for Macy’s orders.

“Cahoot is very responsive and organized in all aspects. Everything is prepared to give anyone the best experience ever. They’re the right partner to help you accomplish your business purpose.”

~ Italian Food Online Store

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Flexibility to Work With Macy’s Carrier Accounts

Macy’s will provide you with a UPS account which must be used exclusively for fulfilling VDF orders. Your 3PL partner must be able to have the flexibility and agility in both their software and operations which supports Sellers bringing their own accounts.

Ultrafast Shipping

Macy’s requires that 98.5% of orders are shipped (leave the warehouse) in under 2 business days. However, the consumer expectation today is for fast, free shipping across every channel. Whether you operate from a single warehouse that you own or lease, or work with a traditional 3PL that only has 1 or 2 fulfillment centers, covering the entire country from a limited number of locations becomes extremely challenging. Additionally, with Macy’s carrier accounts, you can only pick from UPS SurePost or Ground services to fulfill orders. Imagine if your 3PL only has a California fulfillment center, but you have to ship orders to New York – customers will have to wait 4-5 business days to get their order in the era of ultrafast same or next-day delivery. With a platform like Cahoot, you can leverage a network of strategically located warehouses to place your inventory closer to your end customers and shorten delivery speeds.

Adherence to Macy’s Packing Requirements

The little things are often the most important; merchants are required to place a Macy’s branded packing slip inside every carton shipped to customers. You need a fulfillment partner that is fully aware of all these requirements and will sweat the details to ensure you are compliant with all aspects of the VDF program.

Responsive and Reliable Customer Support

As part of the VDF program, Macy’s audits and reviews the performance of Sellers in the program – any mistakes or errors that your 3PL commits directly affect your brand reputation, the Macy’s customer experience, and your ability to remain an approved vendor. It becomes essential to have a customer support team that is responsive and ready to quickly resolve any issues that you may run into.

Experience Working With Macy’s Sellers

As we mentioned before, Macy’s marketplace is curated – meaning that it’s exclusive and there are not a large number of brands or Sellers approved to participate, unlike Amazon. This therefore means there are a limited number of order fulfillment services out there that have experience working with merchants who are part of Macy Vendor Direct. Make sure to identify a company that has demonstrable social proof of its track record supporting Macy’s merchants. Here’s what one of our customers, Glo International, had to say about their experience shipping Macy’s orders with Cahoot:

“Cahoot allowed us to reduce the monthly shipping cost and the support service is really responsive and efficient!”

~ Glo International

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The Role of Logistics in Customer Satisfaction

Effective logistics and fulfillment processes are the central components to achieving success in the Macy’s marketplace. When customers place an order, they expect it to be delivered accurately and on time. Any delays or errors in the fulfillment process can lead to dissatisfaction and potentially harm the brand’s reputation and ability to continue in the VDF program. By working with a reliable 3PL provider, Macy’s vendors can ensure that their warehousing and order fulfillment processes are optimized for speed and accuracy, prioritizing early shipment and delivery wherever possible (what Cahoot calls ‘preponing’, the opposite of postponing). A well-executed logistics strategy will not only meet but exceed your customer’s expectations, leading to repeat business and greater lifetime customer value.

Top Macy’s 3PL Companies

Amazon Multi-Channel Fulfillment

Amazon Multi-Channel Fulfillment (MCF) is Amazon’s outsourced fulfillment service for merchants selling on non-Amazon sales channels, such as Macy’s, whereby Amazon handles the picking, packing, and shipping of the orders coming from those sales channels. Ecommerce Sellers can store their inventory at Amazon’s warehouses, and MCF will fulfill the non-Amazon orders from select channels.

ShipBob

ShipBob is a 3PL that focuses on serving ecommerce merchants. They have a nationwide network of order fulfillment centers that enable fast shipping, but they charge extra for guaranteed 2-day shipping. Built for ecommerce, they have an easy-to-use shipping software platform and a large set of pre-built integrations.

Cahoot: The Best Macy’s 3PL

Cahoot’s order fulfillment network is built for the future of ecommerce. Our network of warehouses is strategically located at different locations in the US, enabling Macy’s merchants to offer ultrafast shipping. Our fulfillment centers are well equipped to handle all types of SKUs (including the ones that the typical Amazon fulfillment center may struggle to process) – small, lightweight, seasonal, slow-moving, heavy, and oversized.

We are also fully compliant with the Macy’s technology and packing requirements – and provide you the flexibility to use the Macy’s UPS account provided to you without any hidden fees. Lastly, our US-based customer service team is always available if something needs to be addressed, ensuring that sales are uninterrupted and that you enjoy a successful partnership with Macy’s.

Cahoot is committed to helping Macy’s Sellers grow their businesses with fast and affordable ecommerce order fulfillment service.

If you’d like to find out how Cahoot can help your ecommerce business, please get in touch with us. We can’t wait to show you how Macy’s order fulfillment was meant to be.

If you are selling on multiple sales channels and are interested in a 3PL that can help you with fulfillment, check out some of our other articles:

1. How to Choose the Best 3PL for Your Shopify Store
2. How to Choose the Best 3PL for Wayfair
3. How to Choose the Best 3PL for Target Plus
4. How to Choose the Best 3PL for the Nordstrom Direct Drop Ship Program

Frequently Asked Questions

What carrier does Macy’s use for shipping?

The company uses UPS and the U.S. Postal Service to deliver packages, in addition to DoorDash for same-day delivery.

What is 3PL in retail?

3PL stands for third-party logistics, also known as order fulfillment. A 3PL warehouse provides a full range of ecommerce fulfillment services, including storage, order processing, shipping, and receiving. Many 3PL warehouses provide value-added services such as returns processing, cross docking, or kitting.

How many distribution centers does Macy’s have?

Macy’s currently operates 25 fulfillment centers across the U.S. Most recently, the retailer opened a new 908,000-square-foot distribution center in Tomball, Texas in September 2023, before leasing a 272,000-square-foot facility in Lathrop, Calif. in January 2024.

What is Macy’s biggest competitor?

The main competitors of Macy’s include Dillard’s (DDS), Nordstrom (JWN), Kohl’s (KSS), JC Penney, Burlington Stores (BURL), and Target (TGT).

Nordstrom is one of the most iconic department stores in the US. Nordstrom has over 9 million shoppers each year. For most people, the first thing that comes to mind when they think of Nordstrom are its brick and mortar stores. The company serves American customers through its over 350 locations. Most ecommerce sellers might therefore ignore the retailer in pursuit of players with a larger digital presence, such as Amazon or Walmart. However, online is becoming an increasingly important part of Nordstrom’s operations – according to Statista, each year since 2020 over 35%+ of Nordstrom’s annual sales were driven through digital channels.

Nordstrom’s Direct Drop Ship program is a way for sellers to access this large segment of shoppers. Through the program, sellers can feature their product assortment on Nordstrom’s website. When customers place orders on Nordstrom, merchants must pick, pack and ship the products either from their own warehouse, or through a 3rd Party Logistics Provider (3PL) to the customer.

Before we dive into how and why you can find this 3PL partner, it’s worth asking an important question – why is the program worth doing?

Why is the Direct Drop Ship Program Great?

Nordstrom’s Direct Drop Ship Program has several powerful benefits for participating sellers:

Invite-only Marketplace Where You Can Grow Sales

Nordstrom’s Direct Drop Ship program is currently invite only – like the 3rd party marketplaces at Macy’s and Target. Nordstrom may be doing this to simplify the product assortment customers see, making it easier for them to find things they really like. For sellers, this is great because it provides access to Nordstrom customers with much less competition compared to a sales channel like Amazon, where nearly anyone can sell.

Nordstrom Provides Full Assistance With EDI Integration

Nordstrom requires transmission of information between themselves and their sellers through Electronic Data Interchange (EDI). The company does this through a CommerceHub platform called DropShip Commerce (DSCO). Whenever purchase orders are received, Nordstrom will transmit the information via EDI to the seller. Similarly, sellers must pass updates from their side (acknowledgements of Purchase Orders, Advance Shipment Notifications with tracking information etc.) through the DSCO platform.

Some retailers require the seller to take care of configuring this technology on their dropshipping programs. Nordstrom provides both the platform and assistance in integrating it with their systems.

Nordstrom Covers All Shipping Costs

One of the great advantages of the program is that shipping fees are paid for by Nordstrom. While other elements of order fulfillment, such as packaging and storage fees are still the responsibility of the seller, shipping labels are a significant cost that Nordstrom takes off their shoulders.

Sellers must make sure that they use the UPS billing account that Nordstrom provides them – so long as merchants comply with this, they will be reimbursed shipping costs across a variety of services – including Ground, 3 Day Select, 2nd Day Air and Next Day Air Saver.

Understanding Nordstrom’s Requirements

Nordstrom has specific requirements for its trading partners, including EDI compliance, timely order fulfillment, and accurate inventory management. To ensure a smooth partnership, it’s essential to understand these requirements and implement them effectively.

Trading Partner Requirements

As a trading partner with Nordstrom, you’ll need to meet certain requirements, such as:

• Timely Order Fulfillment: Nordstrom expects its trading partners to fulfill orders promptly and accurately, ensuring that customers receive their products on time. Meeting these expectations is crucial for maintaining customer satisfaction and upholding Nordstrom’s reputation for reliability.
• Accurate Inventory Management: Trading partners must maintain accurate inventory levels to prevent stockouts and overstocking. Proper inventory management helps ensure that products are always available for purchase, which is vital for keeping customers happy and maintaining a smooth supply chain.
• EDI Compliance: Nordstrom requires its trading partners to be EDI-capable, which involves exchanging electronic documents, such as purchase orders and invoices, in a standardized format. This ensures seamless communication and data exchange between Nordstrom and its partners, reducing errors and improving efficiency.

Integration Options

To integrate with Nordstrom’s systems, you’ll need to consider the following options:

Integrate with Ecommerce Platforms

Nordstrom requires its trading partners to integrate with its ecommerce platform, which involves connecting your online store to Nordstrom’s system. This integration enables you to:

• Receive Purchase Orders Electronically: By integrating with Nordstrom’s ecommerce platform, you can receive purchase orders directly into your system, streamlining the order processing workflow and reducing manual data entry.
• Send Shipment Notifications and Tracking Information: Integration allows you to send shipment notifications and tracking information to Nordstrom automatically. This ensures that customers are kept informed about the status of their orders, enhancing their shopping experience.
• Update Inventory Levels in Real-Time: Real-time inventory updates help you maintain accurate stock levels, preventing overselling and stockouts. This integration ensures that Nordstrom always has up-to-date information about your inventory, which is crucial for maintaining a smooth supply chain.

By integrating with Nordstrom’s ecommerce platform, you can improve the efficiency of your order fulfillment process and ensure that you meet Nordstrom’s requirements. This seamless connection helps you provide a better customer experience and maintain a strong partnership with Nordstrom.

What Should You Look for in a Nordstrom 3PL?

Due to Nordstrom’s stringent requirements, many sellers find it simpler and more profitable to rely on an established 3PL that is already familiar with and comfortable meeting Nordstrom’s requirements. This way sellers can reap the benefits of participating in Nordstrom’s Direct Drop Ship program without having to completely retool their inventory storage and order workflows.

Maintain a Fulfillment Rate of 98%

Nordstrom requires that sellers keep cancellations extremely low – 98% of orders must be fulfilled before the defined due date on the DSCO system.

Traditional 3PLs that operate with a single warehouse location may not be ideal – in the event of any disruption at that location (extreme weather, carrier services disruption etc.), your ability to ship products on time to customers will be impacted.

Additionally, traditional 3PLs may be limited to basic spreadsheets or worse, manual bookkeeping to keep track of your inventory. If you run out of stock and purchase orders continue flowing in, you will be forced to cancel them, affecting your fulfillment rate metrics. Cahoot’s software intelligently decrements the count of inventory as it leaves our warehouses and provides color-coded alerts to you on a dashboard so that you always replenish products in time to keep your sales going.

Ability to Ship 97% of Orders On-Time

Nordstrom defines its shipping SLAs based on whether the order requires Standard or Expedited Shipping.

Achieving this high level of performance comes down to ensuring that your fulfillment partner has excellent pick/pack and order fulfillment practices to get every order out within time.

Make sure to conduct extensive research into the standards at your 3PL’s warehouse. On Cahoot’s order fulfillment network, warehouses must pass a 44-point checklist to be eligible to fulfill orders for our sellers.

“The Cahoot team have been great to work with — always trying to provide great service and address any concerns and issues quickly and effectively. We’ve been very impressed with their shipping performance and communication on status of delivery for packages.”

~ Fenix Light Store

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Have an Existing UPS Account, and Experience Working With the Carrier

Nordstrom requires that sellers ship all Nordstrom orders on their own UPS account, which is connected to your, or your 3PL’s UPS account. In order to meet Nordstrom’s fulfillment metrics, your 3PL must have experience working with UPS to ensure that daily pickups and carrier scans are conducted in a timely fashion, thereby streamlining your Nordstrom order fulfillment.

Help You Meet Nordstrom’s Eco-Friendly Packaging Standards

In Nordstrom’s words, they ‘strive to be an environmentally friendly company’. They also encourage sellers to avoid excess packaging.

With many traditional 3PLs, you may find that items often ship in boxes larger than the SKU actually needs. The problem is that most traditional 3PLs have a very limited configuration of boxes of standard sizes. Items are simply thrown into the next available box, without taking care to identify if it is truly the most optimal one.

The problem worsens with Multi-Line, Multi-Quantity (MLMQ) Orders. These orders can often be unnecessarily split into multiple boxes. With Cahoot’s MLMQ automation features, our system learns from SKU and box dimension data, as well as past data to intelligently identify the most optimal box for every order.

This ensures that you save costs across every order, while also meeting Nordstrom’s (and the customer’s) expectation for more environmentally responsible, sustainable packaging.

Fully Compliant With Nordstrom Packing Slip Requirements

Nordstrom requires every shipment sent to customers to have a branded packing slip, as well as a return label (Nordstrom bears all shipping costs).

This is an example of what a Nordstrom packing slip looks like:

This is what a Nordstrom return label looks like:

Your 3PL fulfillment partner must sweat the details and ensure that all of these requirements are complied with – the little things matter enormously toward ensuring both continued enrollment in the Direct Drop Ship program, as well as customer satisfaction.

Fully Compliant with Nordstrom EDI Technology

The 3PL must be able to work with the Direct Drop Ship Program’s tech stack (DSCO platform) and ensure that you comply with all the requirements around data transmission to Nordstrom.

Benefits of Working with a 3PL

Working with a third-party logistics (3PL) provider can help you meet Nordstrom’s requirements and improve your overall business operations. Some benefits of working with a 3PL include:

• Improved Order Fulfillment: 3PLs specialize in order fulfillment and can help you meet Nordstrom’s timely fulfillment requirements. Their expertise in logistics ensures that orders are processed and shipped efficiently, reducing the risk of delays and errors.
• Enhanced Inventory Management: 3PLs can help you manage your inventory levels more effectively, reducing the risk of stockouts and overstocking. With advanced inventory management systems, 3PLs provide real-time visibility into your stock levels, helping you make informed decisions about replenishment and stock allocation.
• Increased Efficiency: 3PLs can streamline your logistics operations, freeing up time and resources for you to focus on growing your business. By outsourcing logistics to a 3PL, you can concentrate on core business activities such as marketing, product development, and customer service.

Responsive, Reliable Customer Support

Order fulfillment is a complex operation, involving multiple, intricate steps in the process from click to delivery. Things don’t always go as planned, but what is crucial is ensuring that your 3PL has a responsive, reliable customer support team whom you can rely on to fix problems fast, with minimal disruption to your business operations.

Experience Working with Nordstrom Sellers

Most traditional 3PLs may not have personnel with the experience and expertise working with Nordstrom to troubleshoot and fix problems fast – costing you precious time and sales. It is important to identify a Nordstrom fulfillment partner with a reliable, responsive customer support team – who will be ready to dive in and solve problems quickly, so that you’re always selling and keeping your customers happy.

Here’s what one of our customers had to say about Cahoot’s Support team:

Cahoot’s support is prompt and personal, not monolithic and apathetic as some large companies tend to be. Cahoot is not only a great 3PL provider but also a strategic partner that goes above and beyond for its clients. They are a 5-star team of people who make it their business to care about yours.”

~ VERSACART

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So now that we’ve taken a look at the important criteria that guide your choice of a 3PL for Nordstrom, let’s look at the options that are actually available to you, and the pros and cons of each of them:

Top Nordstrom 3PL Companies

Amazon Multi-Channel Fulfillment

Amazon Multi-Channel Fulfillment (MCF) is Amazon’s outsourced fulfillment service for merchants selling on non-Amazon sales channels, such as Nordstrom, whereby Amazon handles the picking, packing, and shipping of the orders coming from those sales channels.

Ecommerce sellers can store their inventory at Amazon’s warehouses, and MCF will fulfill the non-Amazon orders from select channels. MCF deploys the same infrastructure and resources that power Amazon’s in-house Fulfilled By Amazon (FBA) logistics network.

ShipBob

ShipBob is a 3PL that focuses on serving ecommerce merchants. They have a nationwide network of order fulfillment centers that enable fast shipping, but they charge extra for guaranteed 2-day shipping. Built for ecommerce, they have an easy-to-use shipping software platform and a large set of pre-built integrations.

Cahoot: The Best Nordstrom 3PL

Cahoot is committed to helping Nordstrom sellers grow their businesses with fast and affordable ecommerce order fulfillment services.

Cahoot’s peer-to-peer order fulfillment network is built for the future of ecommerce. Our network of warehouses is located at strategic locations across the US, enabling Nordstrom Direct Drop Ship merchants to offer their customers ultrafast shipping. Our fulfillment centers are well equipped to handle all types of SKUs (including the ones that the typical Amazon Fulfillment Center may struggle to process) – small, lightweight, seasonal, slow-moving, heavy, and oversized.

We are compliant with all aspects of the Nordstrom Direct Drop Ship program – and provide you the flexibility to use the Nordstrom UPS account provided to you without any hidden fees. Our US-based customer service team is always available if something needs to be addressed, ensuring that sales are uninterrupted and that you enjoy a successful partnership with Nordstrom.

If you’d like to find out how Cahoot can help your ecommerce business, please get in touch with us. We can’t wait to show you how Nordstrom order fulfillment was meant to be.

If you are selling on multiple sales channels and are interested in 3PLs that can help you with fulfillment, you can read our other articles:

1. How to Choose the Best 3PL for Your Shopify Store
2. How to Choose the best 3PL for Your Macy’s Orders
3. How to Choose the Best 3PL for Target Plus
4. How to Choose the Best 3PL for Wayfair

Frequently Asked Questions

What is Nordstrom’s Direct Drop Ship Program?

Nordstrom’s Direct Drop Ship Program allows vendors to ship products directly to Nordstrom customers, bypassing Nordstrom’s warehouses. This program enables Nordstrom to expand its product offerings without holding inventory, while vendors like you manage fulfillment and shipping while meeting Nordstrom’s strict compliance standards.

What carrier does Nordstrom use for shipping?

Nordstrom requires sellers to use their own UPS account for all Nordstrom orders.

What is a 3PL?

3PL stands for third-party logistics, also known as order fulfillment. A 3PL warehouse provides a full range of ecommerce fulfillment services, including storage, order processing, shipping, and receiving. Many 3PL warehouses provide value-added services such as returns processing, cross docking, or kitting.

How many distribution centers does Nordstrom have?

Nordstrom currently operates over 350 stores across the U.S. These stores also fulfill online orders and act as shipping locations. In addition, each seller participating in Nordstrom’s Drop Ship Program also can act as a distributor for orders placed on Nordstrom.

What is Nordstrom’s biggest competitor?

The main competitors of Nordstrom (JWN) include Dillard’s (DDS), Macy’s (M), Neiman Marcus (private), and Saks Fifth Avenue (SKS).

Wayfair is commonly referred to as the “Amazon of the Furniture and Home Goods” industry. Wayfair has over 22 million active customers; while this may seem a small number compared to the number of people shopping at the likes of Amazon and Walmart, Wayfair is focused on a specific niche. Wayfair has managed to retain its dominance in the Furniture and Home Goods category despite these massive competitors. Wayfair brings in $2.9+ billion in revenues each quarter.

Wayfair’s business model is similarly unique. While Amazon has invested heavily in building its inhouse logistics network and Walmart and Target are slowly growing ecommerce in addition to the brick and mortar channel that fueled their growth, Wayfair is different. Wayfair relies heavily on a dropshipping model. In this model, when Wayfair customers place orders, the orders are sent directly to sellers to be picked, packed, and shipped. According to estimates, Wayfair dropships as much as 95% of the products that it sells to customers. This reliance on dropshipping makes efficient fulfillment services essential for Sellers working with Wayfair to ensure timely delivery and customer satisfaction.

Why Selling on Wayfair is Great for Ecommerce Merchants

Wayfair offers unique selling opportunities for sellers that other marketplaces don’t.

Lesser Competition Than on Other Marketplaces

As of 2023, Wayfair has only 11,000 3rd party sellers, which is miniscule compared to the 2.5 million 3rd party sellers on Amazon’s marketplace and still very low compared to the 150,000 on Walmart. This allows brands to be much more prominently featured and visible to customers, enabling increased sales and profitability.

No Marketplace Referral Fees

Wayfair buys products from its suppliers at wholesale prices and then charges retail prices to its end customers. This can be a more attractive model to sellers, compared to the referral fee based model that Amazon operates on.

Wayfair Covers Shipping Fees

Like other marketplaces, Wayfair covers the cost of shipping for its sellers: all shipments are billed to Wayfair’s Small Parcel (FedEx), LTL or White Glove shipping accounts. Merchants can either choose to use prepaid shipping labels from Wayfair or print their own shipping labels and then bill Wayfair for the associated charges.

“Cahoot has a great app and tech platform for e-commerce and has been a great partner. I evaluated numerous competitors and they provided by far the most compelling combination of good pricing and service. Their people are top-notch and there to help you succeed as a partner.”

~ VENTAPAK

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Issues and Problems with Selling on Wayfair

Selling on Wayfair can be lucrative but there are challenges and downsides sellers must navigate. Here are some of the most common issues and problems sellers face:

1. Wayfair Controls Final Pricing

Unlike other marketplaces where sellers set their own prices, Wayfair includes the shipping cost in the customer facing price meaning they control the final retail price.

2. Automated Pricing Algorithm

Wayfair uses an automated algorithm to adjust listing prices dynamically. This can lead to unpredictable price changes and lower margins without seller consent.

3. Price Competition

Large brands and established manufacturers dominate product categories, along with many sellers adopting a low price, high volume strategy, making it difficult for new sellers to gain visibility.

4. Listing Visibility

Wayfair’s search algorithm prioritizes best-selling products and established sellers. Wayfair does not allow SEO or paid ads to boost visibility. As a result, newer sellers often struggle to get noticed.

5. No Branded Storefronts

Unlike on Amazon and Walmart, Wayfair does not allow sellers to create branded storefronts. This limits a seller’s ability to build brand recognition and customer loyalty, as all products are displayed under Wayfair’s branding rather than the seller’s business identity.

6. Strict Policy Compliance

Sellers must adhere to Wayfair’s stringent policies regarding product quality, shipping times, and return policies. Failing to comply with these regulations can result in penalties, product delistings, or even account suspension.

7. Customer Service

Wayfair requires sellers to provide rapid responses to customer inquiries. Delays in communication or failure to resolve customer issues promptly can negatively impact a seller’s standing on the platform.

8. Strict Listing Requirements

Wayfair has rigid listing guidelines that sellers must follow. These include detailed product descriptions, high-quality images, and accurate specifications. Listings that do not meet Wayfair’s standards may be rejected or removed from the platform.

9. High Return Rates

Wayfair has a customer-friendly return policy, which often translates into higher return rates for sellers. Since sellers are responsible for handling returns and associated costs, frequent returns can erode profit margins and create logistical challenges.

10. Large Item Shipping Challenges

Wayfair specializes in home goods, furniture, and large items, which can present shipping challenges. Sellers must ensure proper packaging, coordinate with freight carriers, and manage potential damages during transit. Shipping delays or damage claims can lead to customer dissatisfaction and financial losses.

11. Market Fluctuations

The home goods and furniture industry is highly susceptible to market fluctuations, seasonal demand shifts, and economic downturns. The US housing market also impacts customer demand for furniture and home goods. These factors can affect sales volume, pricing stability, and overall profitability for sellers on Wayfair.

What to Look for in a Wayfair 3PL?

Sellers participating in Wayfair can be profitable, but requires careful planning. Sellers must manage logistics, pricing, and meet Wayfair’s standards and regulations. This can be overwhelming and partnering with an experienced 3PL can ensure participation with Wayfair is profitable and stress-free. Here are some of the features a 3PL provides:

Automated Inventory Level Monitoring

Sellers on Wayfair are encouraged to send Inventory Feeds (updates on how much stock of product is available at warehouses) as frequently as possible. This is because Wayfair wants to ensure a good customer experience by only shipping products that are in-stock.

With traditional 3PLs, stockkeeping of inventory levels is often conducted on spreadsheets, or worse, by hand. These inefficient tools create many problems in staying on top of the inventory levels in warehouses.

If a business takes on more orders than it can fulfill, fails to ship all assigned orders, and is forced to cancel, it can damage relationships with both Wayfair and customers. Such cancellations may lead to penalties, loss of trust, and a negative impact on future sales opportunities.

With Cahoot’s intelligent software, inventory is automatically decremented and provides color-coded alerts as inventory starts running out of stock – this ensures proactively replenishing inventory and boosting sales, rather than scrambling to fix problems.

Ability to Offer Late Same Day Cut Offs

Wayfair encourages sellers to deliver a great experience to their customers by ensuring that order cut-off and shipment pickup times are set as late as possible, so that customers can experience fast shipping. This might also be Wayfair’s attempt to keep themselves competitive and relevant in the era of ultrafast fulfillment.

Most traditional 3PLs struggle to meet the demanding expectations from today’s customers. Cahoot is used to meeting expectations for late same-day cutoffs, weekend pickups and deliveries through our expertise in helping Amazon sellers thrive on the Seller Fulfilled Prime (SFP) program. Through our network’s best-in-class fulfillment capabilities, sellers meet and surpass the expectations of Wayfair customers.

Minimum Lead Time – Every SKU Ships Fast

If an order containing different SKUs needs to ship in separate shipments, Wayfair expects merchants to proactively communicate that to customers. However, today’s demanding customer expects ultrafast order fulfillment across every SKU. To meet these expectations, shippers must ensure their 3PL deploys excellent pick-pack practices, have high-quality fulfillment services, and order fulfillment operations in their warehouses.

Consider working with a partner like Cahoot – to fulfill orders for our sellers, a warehouse must pass a 44-point checklist. This ensures that only the very best fulfillment centers join our network. These fulfillment centers are well equipped to handle a variety of SKUs – small, light, slow and fast-moving, heavy, larger-sized and seasonal.

“I highly recommend Cahoot to anyone looking to outsource fulfillment for their business. They go above and beyond to help make sure your needs as a business are met. I reached out to 20 other 3PLs, and fulfillment centers. Cahoot was the best option for business relations, services, and pricing by far.”

~ GN Products LLC

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Responsive, Reliable Customer Support

Needless to say, order fulfillment is a complex operation, and things don’t always go to plan. When issues arise, customers and Wayfair won’t blame the 3PL; the merchant is held accountable and the merchant’s relationship and brand equity is at stake with these key stakeholders. While setbacks can occur, it is crucial to ensure that the 3PL offers responsive and reliable customer support to address problems swiftly and restore normal operations with alacrity.

Most traditional 3PLs lack personnel with either the experience or expertise required to quickly troubleshoot issues. It is essential to identify 3PLs with a dedicated and qualified support team ready on hand to resolve problems, ensuring business operations remain uninterrupted and increasing in sales volume and profitability.

Cahoot – The Best 3PL for Wayfair

Cahoot’s peer-to-peer order fulfillment network is built for the future of ecommerce. Our network of warehouses is located at strategic locations across the US, enabling Wayfair merchants to offer their customers ultrafast shipping. Our fulfillment centers are well equipped to handle all types of SKUs – including heavier, seasonal, larger-sized and slow moving ones. Cahoot’s services come with transparent pricing and no hidden fees.

Cahoot is compliant with all expectations Wayfair has from its dropshippers. Our US based customer support team is always ready and responsive to ensure that order fulfillment operations are running smoothly at all times. Cahoot is committed to helping Wayfair sellers grow their businesses with fast and affordable ecommerce order fulfillment service.

To find out how Cahoot can help ecommerce businesses grow, please get in touch with us. We can’t wait to show how Wayfair order fulfillment was meant to be. Businesses selling on multiple sales channels can also see how Cahoot can help with fulfillment in our other articles:

1. How to Choose the Best 3PL for Shopify
2. How to Choose the best 3PL for Macy’s Orders
3. How to Choose the Best 3PL for Target Plus
4. How to Choose the Best 3PL for the Nordstrom Direct Dropship Program

Frequently Asked Questions

Is Selling on Wayfair Worth it?

Selling on Wayfair can be worth it for businesses that specialize in home goods, furniture, and décor. The platform provides access to a large customer base, but it operates differently from traditional marketplaces like Amazon or eBay. Wayfair uses a drop-ship model, meaning sellers don’t directly sell to customers but instead supply products that Wayfair markets and sells.

How do I Sell on Wayfair?

Wayfair does not allow just anyone to list products. First, sellers need to submit an application to the Wayfair Partner Program and be approved.

What is a Wayfair 3PL?

A Wayfair 3PL (Third-Party Logistics) provider is an external company that handles warehousing, fulfillment, and shipping on behalf of Wayfair suppliers. Since Wayfair operates on a drop-ship model, many sellers use 3PL services to manage storage and deliveries efficiently. This helps meet Wayfair’s strict shipping requirements, improve delivery speed, and reduce logistics costs.

How Much Does It Cost to Ship for Wayfair?

Wayfair typically covers shipping costs but requires sellers to price their products accordingly to absorb these costs. There are no direct shipping fees to Wayfair, but suppliers are responsible for ensuring competitive pricing that includes fulfillment expenses.

Nearly every American has shopped at a Target – the retailer holds a level of popularity comparable to that of Amazon and Walmart. The Minnesota retailer’s brick and mortar footprint is massive. As of 2024, Target had 1,956 stores in the U.S and hauled in $107 billion in revenue. More importantly, the company holds a huge audience for sellers and brands to target – according to Business Insider, 8 out of 10 US shoppers are Target customers and the average Target customer makes 23 trips a year to one of their stores. But while Target has had a sizable customer base for years, eCommerce sellers and brands have largely focused on their competitor, Amazon. However, in recent years, Target has begun expanding its online offerings. In 2019, it launched its third party marketplace on its website – Target Plus. This has opened up a massive new audience for eCommerce merchants to expand into.

In this article, we look at the advantages Target Plus offers sellers, the key factors merchants must consider when evaluating a 3PL for their Target Plus orders, and the options that are available.

Why Target Plus Is A Great Option For Sellers

Invite-Only Marketplace With a Large Audience

Target Plus was introduced in 2019 as an invite-only platform. The company said it was doing this to carefully curate the assortment of brands and products available to customers on its website. According to Marketplace Pulse, the program launched with 30 sellers on Target Plus in 2019. Five years later, that number has grown to more than 1,200.

This represents enormously exclusive digital real estate for brands. In certain product categories, there may be just one brand featured. This means that all the customers visiting Target’s site focus exclusively on this limited selection, boosting sales enormously for the featured brands.

Autonomy Over Logistics and Fulfillment

Brands have freedom from having to work with another platform-captive fulfillment solution, such as Fulfilled By Amazon (FBA) or Walmart Fulfillment Services (WFS). Target Plus enables them to handle their logistics and order fulfillment however works best for them – through their own warehouse, a traditional 3PL or order fulfillment networks.

This also means freedom from the fees and surcharges associated with these platform captive fulfillment solutions. Lastly, it allows merchants to manage their inventory in a centralized location – rather than having to send more inbounds to a warehouse owned by a marketplace sales channel, they can simply pull from a centralized pool of inventory that they use for their own website, or Shopify storefront, for example.

A More Equitable Marketplace – No Inhouse Competitor like Amazon FBA

Target Plus allows merchants to send orders out to customers, Target stores or Target fulfillment centers through whatever logistics operation works for them. Additionally, because Target does not have its own competing logistics network (such as FBA on Amazon), there is no preferential treatment provided to sellers who use certain logistics providers.

The model is simple – let the merchants compete, and may those with the best products and order fulfillment standards win.

While Target Plus is a great growth opportunity, the marketplace is still invite-only – Target themselves reach out to the brands that they think would be a good fit for them, explaining the exclusivity. Their website has a form for merchants to fill out if they’re interested in being part of the marketplace, but Target carefully curates participants in the program, and applicants must strive to meet rigorous standards for acceptance.

What Should You Look For In A Target Plus 3PL?

In Target’s own words, the items from 3rd party sellers featured on their website appear exactly the same as all other listings, meaning that these merchants are responsible for upholding the experience customers expect from Target through their product assortment and order fulfillment standards.

Through the invite-only process, Target ensures the product assortment is what customers expect. However, the order fulfillment standards are entirely your responsibility – your ability to maintain enrollment in Target Plus largely depends on the 3PL that you work with.

We’ve outlined the criteria that we think are most important when choosing a 3PL partner for your Target orders:

Ability to Fulfill Orders in 1 Business Day

Target Plus requires participating brands to fulfill their orders (get it out of the warehouse) in 1 business day. This requires warehouses that have excellent picking and packing practices, as well as order fulfillment standards.

Ensure Order Delivery in 5 Business Days

The marketplace requires that brands/products deliver orders to the end-customer in under 5 business days. However, customers today expect fast, free shipping in under 2 days across every channel. Amazon and their Prime loyalty program have created this customer expectation.

Flexibility To Use All Shipping Carriers and Services

Target Plus expects participating sellers to be able to accommodate a variety of carriers and shipping services.

Ability to Produce a Target.com Branded Packing Slip on Every Shipment

On every order that is sent out from the warehouse, Target requires a branded packing slip to be part of the shipment. This is something that needs a 3PL who will sweat the details and ensure that the little – but very important – things are taken care of.

Full Compliance with Target’s EDI Requirements

Target requires merchants to be able to receive and push communications via Electronic Data Interchange (EDI). These communications are automated. Target will use EDI to push purchase order information to merchants. To provide acknowledgement of order receipt and notify Target that the order has been shipped from the warehouse, the merchant must EDI to push this information back.

There are a variety of EDI systems that you can use to connect to Target. Importantly, your 3PL must be able to help you stay fully compliant with these requirements.

Responsive, Reliable Customer Support

Order fulfillment is a complex operation, involving multiple, intricate steps in the process from click to delivery. Things don’t always go as planned, but what is crucial is ensuring that your 3PL has a responsive, reliable customer support team whom you can rely on to fix problems fast, with minimal disruption to your business operations.

Most traditional 3PLs may not have personnel with the experience and expertise required to troubleshoot and fix problems fast – costing you precious time and sales. It is important to identify a Target Plus fulfillment partner with a reliable, responsive customer support team – who will be ready to dive in and solve problems quickly, so that you’re always selling and keeping your customers happy.

So now that we’ve taken a look at the important criteria that guide your choice of a 3PL for Target Plus, let’s look at the options that are actually available to you, and the pros and cons of each of them:

Top Target Plus 3PLs

Amazon Multi-Channel Fulfillment

Amazon Multi-Channel Fulfillment (MCF) is Amazon’s service through which you can fulfill orders on sales channels outside Amazon, such as eBay and Target Plus.

The service deploys the same infrastructure and resources that power Amazon’s in house Fulfilled By Amazon (FBA) logistics network.

ShipBob

Cahoot: The Best Target Plus 3PL

Cahoot’s peer-to-peer order fulfillment network is built for the future of eCommerce. Our network of warehouses is located at strategic locations across the US, enabling Target Plus merchants to offer their customers ultrafast shipping. Our fulfillment centers are well equipped to handle all types of SKUs – including heavier, seasonal, larger-sized and slow moving ones (which the typical Amazon Fulfillment Center may struggle to process).

We are compliant with all aspects of the Target Plus program. Our US based customer support team is always ready and responsive to ensure that your order fulfillment operations are running smoothly all the time.

Cahoot is committed to helping Target Plus sellers grow their businesses with fast and affordable ecommerce order fulfillment service.

With Cahoot’s next generation shipping software, you get much more than that. Our system intelligently rate shops across different carriers, services and warehouse locations on every single order to ensure that the cheapest shipping label that will meet the 5 day delivery timeline is picked on every order.

This ensures you see savings on every order, which gives you back money to invest in growing your brand and sales.

If you’d like to find out how Cahoot can help your ecommerce business, please get in touch with us. We can’t wait to show you how order fulfillment was meant to be done.

If you are selling on multiple sales channels and are interested in 3PLs that can help you with fulfillment, you can read our other articles:

• How to Choose the Best 3PL for Your Shopify Store
• How to Choose the best 3PL for Your Macy’s Orders
• How to Choose the Best 3PL for Wayfair
• How to Choose the Best 3PL for the Nordstrom Direct Drop Ship Program

Frequently Asked Questions

How can I become a Target Plus seller?

Target Plus is an invite-only marketplace offering launched by Target in 2019. Target reaches out to brands that they think would be a good fit for the marketplace. Interested merchants can also fill out a form on Target’s website to express their interest in joining the program.

What are the benefits of selling on Target Plus?

Selling on Target Plus offers several benefits, including access to Target’s large customer base, autonomy over logistics and fulfillment, and a more equitable marketplace without preferential treatment for certain logistics providers.

What should I look for in a 3PL for Target Plus?

When choosing a 3PL for Target Plus, consider factors such as the ability to fulfill orders in 1 business day, ensure order delivery in 5 business days, flexibility to use all shipping carriers and services, ability to produce a Target.com branded packing slip on every shipment, full compliance with Target’s EDI requirements, and responsive, reliable customer support.

While each of Amazon, USPS, FedEx, and UPS are implementing peak surcharges for parcel delivery this holiday season, they’re all going about it in different ways.

Amazon, relatively new to the surcharge game, has added flat percentage fee increases to key services throughout the year. For peak, though, they have a sliding scale that will predictably hit bigger packages with bigger cost increases. Their peak surcharge will be added on top of the existing fuel and inflation surcharge they put into effect this summer, further squeezing seller margins.

Similar to Amazon, USPS will be using a sliding scale that increases the surcharge based on the parcel’s weight and zone. Flat Rate Boxes and Envelopes will see big jumps of $0.75 to $0.95, which will pinch the sellers that rely on these shipping options to keep their logistics costs down while selling inexpensive items.

FedEx, on the other hand, has more flat fees to add as surcharges, including a $2.50 per Ground Economy package charge during Black Friday and Cyber Monday. On top of that, they’ve introduced a “peaking factor” calculation to apply to their largest shippers. The more large shippers outstrip their summer volumes during peak, the more they’ll pay per package.

Like FedEx, UPS will use a dynamic pricing scale that will charge large shippers more when they far outstrip their summer volumes. Unlike FedEx (and the others), though, UPS won’t add a flat surcharge to all packages.

Let’s get into the details.

Amazon FBA Peak Surcharges 2022

On August 16th, Amazon announced that for the first time ever, they will implement a Holiday Peak Fulfillment Fee to take effect from October 15th, 2022 to January 14th, 2023. Per Amazon, The fee will be an average of USD $0.35 per item sold using US and Canada FBA.” Even in isolation, a 35 cent increase in order fulfillment fees can be difficult for sellers to absorb. Considering the enormous pressure that inflation is already putting on sellers and other FBA price increases, this could be the straw that breaks the camel’s back.

At an average of another 35 cents on top of the other increases, there are few, if any, items that haven’t shot up over a dollar in cost to fulfill through FBA this year. When you consider that many smaller items only cost $3 or $4 to fulfill through FBA, that’s a staggering 25%+ increase in one of the most important operational costs in one year. Sellers with small, $10 items have now likely seen over 10% more of their revenue disappear in FBA fees in just over half a year.

To add to FBA seller woes, storage costs for FBA will nearly triple from $0.83 to $2.40 per cb. ft. While this has long been Amazon’s policy and thus is expected, it doesn’t hurt margins any less.

USPS Peak Surcharges 2022

USPS announced their rate adjustments for the 2022 peak holiday season on August 10th, covering both commercial and retail parcels in most classes: Priority Mail Express, Priority Mail, First-Class Package Service, Parcel Select, and USPS Retail Ground. The surcharges are set to go into effect on October 2nd, 2022, and to last until January 22nd, 2023.

There are some notably large increases in prices among the surcharges – for instance, Commercial Priority Mail and Priority Mail Express Flat Rate Boxes and Envelopes will rise by $0.75 each, while their Retail counterparts will increase by $0.95 each. Here’s a full list of increases for their most popular services:

Priority Mail and Priority Mail Express Rate Adjustments:

• Commercial:
  • $0.75 increase for PM and PME Flat Rate Boxes and Envelopes.
  • $0.25 increase for Zones 1-4, 0-10 lbs.
  • $0.80 increase for Zones 5-9, 0-10 lbs.
  • $0.75 increase for Zones 1-4, 11-25 lbs.
  • $2.80 increase for Zones 5-9, 11-25 lbs.
  • $3.00 increase for Zones 1-4, 26-70 lbs.
  • $6.50 increase for Zones 5-9, 26-70 lbs.
• Retail:
  • $0.95 increase for PM and PME Flat Rate Boxes and Envelopes.
  • $0.30 increase for Zones 1-4, 0-10 lbs.
  • $1.00 increase for Zones 5-9, 0-10 lbs.
  • $0.95 increase for Zones 1-4, 11-25 lbs.
  • $3.20 increase for Zones 5-9, 11-25 lbs.
  • $3.25 increase for Zones 1-4, 26-70 lbs.
  • $6.45 increase for Zones 5-9, 26-70 lbs.

First-Class Package Service, Parcel Select Ground, and USPS Retail Ground:

• Commercial:
  • $0.25 increase for Zones 1-4, 0-10 lbs.
  • $0.40 increase for Zones 5-9, 0-10 lbs.
  • $0.75 increase for Zones 1-4, 11-25 lbs.
  • $1.60 increase for Zones 5-9, 11-25 lbs.
  • $3.00 increase for Zones 1-4, 26-70 lbs.
  • $5.50 increase for Zones 5-9, 26-70 lbs.
• Retail:
  • $0.30 increase for Zones 1-4, 0-10 lbs.
  • $0.60 increase for Zones 5-9, 0-10 lbs.
  • $0.95 increase for Zones 1-4, 11-25 lbs.
  • $2.70 increase for Zones 5-9, 11-25 lbs.
  • $3.25 increase for Zones 1-4, 26-70 lbs.
  • $5.85 increase for Zones 5-9, 26-70 lbs.

FedEx Peak Surcharges 2022

Unlike USPS, FedEx’s peak surcharges will kick in much earlier, in September. They are taking a much more granular approach to surcharges and fees that split out many different ways in which they’ll increase cost, and those cost increases will vary based on the particular date in peak. Not only will they vary by the particular date, but they’ll also vary by a new “peaking factor” that FedEx will use to dynamically charge more to the sellers that have the biggest spikes in sales. The better you do, the worse your margin will become.

Source: FedEx.com

FedEx’s basic surcharges will start with an additional $1.50 per package for Ground Economy services, in effect during November and from mid-December to mid-January. During the most busy time of Black Friday and Cyber Monday, that surcharge will jump up to an even higher $2.50 per package.

The “peaking factor” charge will be added on top of that, and it will be in effect from October 31st to January 15th. Thankfully for SMBs, it will only apply to enterprise customers that ship more than 20,000 Ground Economy packages per week, but it’s important to keep an eye on for the future regardless. What starts as a limited surcharge often spreads to apply to more people in subsequent years. The peaking factor will be calculated based on the ratio of volume shipped during peak as compared to an average to volume shipped during the relatively sleepy summer weeks of June 6th, 2022 – July 3rd, 2022. A seller that doubles their volume during peak will pay an extra $2.50 per Ground package and an extra $3.50 per Express on top of the previously mentioned surcharges. Quadruple your volume, and you’ll pay an extra $6.00 for Ground and $7.00 for Express, eating heavily into your margin.

UPS Peak Surcharges 2022

Finally, UPS shared their plans for peak surcharges in their September 9th update. Compared to USPS and FedEx, their surcharges are limited in scope and will affect fewer sellers. They have a range of surcharges that cover most international shipments, while their domestic surcharges will operate largely in the same way that FedEx’s “peaking factor” will work.

It will only apply to sellers that have been billed for more than 20,000 packages during any week since October 2021, and the surcharge will vary based on the type of service and the extent to which the seller’s peak volume outstrips their “Baseline Volume”. The baseline volume will be calculated as the customer’s average weekly volume for June 2022.

Source: UPS

UPS’s surcharges come out at a very similar level to FedEx’s peaking surcharges – for instance, a seller that doubles their baseline volume and uses UPS Ground Residential will pay $2.50 more per package, while Next Day Air Residential will cost $3.50 extra per package. Those numbers are identical to those of FedEx, as are many of the other surcharges.

UPS’s international surcharges will add cost in a linear fashion based on package weight. For instance, international shipments from the US to Europe will cost $0.15 per lb more via UPS Worldwide Express Plus. Most of their international surcharges are going into effect on September 25th, and notably, they haven’t provided an end date to the rate increases.

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Cahoot has created an Amazon-like ecommerce order fulfillment network that makes low cost, fast and free shipping a breeze for every eCommerce sales channel. We use our large number of warehouses to strategically stage merchant inventory in multiple locations close to their customers, which minimizes their Zone profile. This both saves on shipping costs and time, which expands margin for the sellers and delights customers with short delivery times.

Cahoot is the next generation of tech-enabled order fulfillment services networks. Unlike other networks that are collections of third party logistics warehouses, Cahoot’s innovative approach empowers merchants across the country to fulfill orders for one another. Our peer-to-peer network is a collective of highly vetted eCommerce retailers who offer up excess warehouse space and resources to provide high-quality order fulfillment to other merchants. Since they fulfill their own DTC orders, they know how important top-notch order fulfillment is, and they put the same care and energy into your orders as they do for their own.

With a peer-to-peer network, multi-channel fulfillment with nationwide 1-day and 2-day delivery at economy shipping rates is the norm.

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