E-commerce Fulfillment Archives – unicommerce.com #1 Cloud based E-commerce Software Solutions to manage Order, Inventory, Warehouse Tue, 01 Oct 2024 07:42:18 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://infowordpress.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/08/03105610/favicon.png E-commerce Fulfillment Archives – unicommerce.com 32 32 E-commerce Fulfillment – Types, Process, Challenges and Solutions https://unicommerce.com/blog/ecommerce-fulfillment/ https://unicommerce.com/blog/ecommerce-fulfillment/#respond Tue, 24 Sep 2024 12:08:36 +0000 https://unicommerce.com/?p=393714 Get a comprehensive understanding of e-commerce fulfillment, including its types, top challenges and their solutions.

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Table of Contents
1. Introduction
2. Different Types of E-commerce Fulfillment
– Fulfillment on Marketplaces
– Fulfillment on Websites
– Fulfillment for Quick Commerce
– Fulfillment in Stores
3. Challenges in E-commerce Fulfillment
– Inventory Syncing and Visibility
– Order Accuracy and Packaging
– Logistics Allotment
– Return Processing
– Omnichannel Fulfillment
– Hyperlocal Hurdles
4. Optimizing Your E-commerce Fulfillment
– Automate Your Orders and Inventory
– Leverage Your Logistics
– Revolutionize your Returns

– Robust Your Retail Game

– Quick Ways of Quick Commerce
5. Smart Order Fulfillment, Strong Business Foundation

Building an e-commerce business is like building a house. You can use solid materials to create a strong foundation or make a ‘house of cards, ’ which will collapse. Your choice determines whether your business will stand or crumble because of weak foundations. 
Order fulfillment is like a building block in e-commerce. An order is an asset financially and in terms of the company’s credibility. The higher the order fulfillment rate, the stronger the e-commerce business foundations will be. Despite any business model you must work with, fulfillment relies on multiple aspects. Let’s discover these aspects and how to ensure efficiency in your order fulfillment process.

Different Types of E-commerce Fulfillment 

types of ecommerce fulfillment

1. Fulfillment on Marketplaces

When you sell on a marketplace, there are two ways to fulfill your orders. One is when you choose your marketplace to function the whole fulfillment process, such as FBA (Fulfillment by Amazon) or FBF (Fulfillment by Flipkart). The second is when you list your product in the marketplace and enlist the help of third parties, taking the responsibility of fulfillment yourself. 

2. Fulfillment on Websites

Many brands only sell on their websites. Hence, most things are connected to them directly. They might have their warehouse or use a third party to outsource their warehousing. They must ensure that their solutions are efficiently functioning and that the logistics are well-integrated for the smooth fulfillment process. There is still a significant operational dependency on the third party, but a brand’s reputation is connected to it directly. 

3. Fulfillment for Quickcommerce

Every business changes over time, and as we offer more to customers, we need better technology to support it. In Quick Commerce, where services are delivered quickly, solutions must also be fast. Two things are essential in the operations of Quick Commerce: one is that the order is placed in bulk, and second, it has to be quick! The big shipments from leading warehouses go to these dark stores of the Quick Commerce platform, allowing for faster delivery to customers and meeting the need for quick service.

4. Fulfillment in Stores

When discussing new e-commerce fulfillment models, it’s essential to mention omnichannel. Order fulfillment can be complex in this model because it combines different channels—like mobile apps, websites, and physical stores—on a single platform. This helps manage operations and track inventory more efficiently. Various fulfillment methods, such as BOPIS (Buy Online, Pick Up In-Store), BORIS (Buy Online, Return In-Store), and ship-from-store, are part of this, offering customers more options while keeping things organized at the backend.

Challenges in E-commerce Fulfillment

top challenges in ecommerce fulfillment

1. Inventory Syncing and Visibility

Managing inventory syncing becomes a real challenge in e-commerce order fulfillment when selling across multiple touchpoints, especially with diverse product lines. It’s tough to predict which products will sell best on which platforms, and figuring out how to distribute inventory across multiple channels can feel like a guessing game. 

For omnichannel setups, determining the correct stock levels for stores in different geographies is another puzzle, with varying customer bases to consider. Understocking or overstocking could mean lost sales and revenue if products aren’t available at the right touchpoints when customers want them. Even if you crack the code to stock the right amount of inventory, how will you keep up with daily sales and ensure enough inventory is on each channel?

2. Order Accuracy and Packaging

Getting accurate details from the start is a key challenge in ensuring smooth order fulfillment. When your picking process is manual, the risk of human errors skyrockets—incorrect addresses, wrong products, or inaccurate quantities can all lead to fulfillment failures. It won’t be completed even if an order moves forward with these mistakes. Beyond that, packaging plays a crucial role in both cost and time.

 Products often require specific packaging based on volumetric standards, and running out of suitable materials forces last-minute adjustments. If the packaging is mishandled—especially by new staff unfamiliar with requirements—it can result in damaged products and unfulfilled orders.

3. Logistics Allotment

Assigning logistics is critical in e-commerce fulfillment, mainly when shipping across different regions or internationally. Different logistics providers have varying serviceability; not all cover every pin code or region. This creates a bottleneck—the order may get put on hold if your preferred provider can’t ship to a particular area. 

In the fast-paced flow of daily orders, such unfulfilled shipments can lead to revenue loss and unhappy customers. These logistical issues are too complex to be managed manually. In the vast warehouse handling thousands of orders daily, ensuring logistics and orders are perfectly aligned without consistent automation is nearly impossible.

4. Returns Processing

Returns can be the hidden hurdle in e-commerce order fulfillment, especially when juggling multiple sales channels. E-commerce fulfillment isn’t just about shipping orders—it’s also about how smooth and efficient your return process is. While marketplaces provide a clear framework for returns, creating a reliable system for your website is a new challenge. 

Customers often hesitate to buy directly from your site due to uncertain returns, pushing them toward marketplaces with better systems. As a result, you pay commissions and platform fees to marketplaces that have mastered the art of returns management and earned customer trust.

5. Omnichannel Fulfillment

Businesses working on the omnichannel model require much more enhanced backend operations. Since it’s not just about multiple touchpoints sold online but also about the various stores. Different geographical regions possess various customer bases and buying behaviors. The selling game has now evolved to various forms of retail fulfillment, like BOPIS (buy online, pickup in-store), BOSS (Buy online, ship to store), BORIS ( Buy online and return in-store), Routing online orders to the nearest store, etcetera. 

One significant puzzle is how you will facilitate all these omni features with the existing POS or ERP system. Is your solution flexible and intelligent enough to fit into your existing operational blueprint? 

6. Hyperlocal Hurdles

Quickcommerce has brought new challenges to fulfillment. First, more inventory visibility is needed. Since the platform controls inventory, forecasting stock levels can be challenging with limited visibility and control. This often leads to overstocking (tying up capital) or understocking, resulting in lost sales and profits.

Second, integration with the platform is crucial. If your system isn’t fully synced with the Quick Commerce platform, you’ll have problems with order processing, inventory tracking, visibility, timely delivery, and logistics allocation. Logistics management becomes complex because dark stores are spread across different regions. Coordinating seamless deliveries across these varied locations is a big hurdle to efficient operations.

Optimizing Your E-commerce Fulfillment

how to optimize ecommerrce fulfillment

1. Automate Your Orders and Inventory

First, you need an order management system that’s accurate and fully connected to all your sales channels. Whether selling on marketplaces, using 3PL storage, or managing your warehouse, your solution should sync effortlessly with each model. The right system will give you precise order details and an organized picklist, ensuring you never miss a sale or lose profit. With everything in sync, you’ll avoid bottlenecks, keep your customers happy, and maintain a seamless order flow.

The second step is to ensure inventory. Your visibility game should be strong enough with real-time updates, whether you have an omnichannel setting or multiple online selling touchpoints. The sync is the secret key to satisfied customers. It should also be able to provide you with the correct reports and analytics so that inventory forecasting is no longer a challenge and the right amount of stocks is stored. 

2. Leverage Your Logistics

As soon as your product leaves the warehouse, it has to be in the right hands at the right time and place. Your logistics have to exist in harmony with the management of your orders so that the right partner is automatically aligned with the order without wasting time. In case of the unserviceability of any area Pincode or unavailability of any partner, the advanced partners automatically hop your order according to your created priority list. Hence, it’s all good to go!  

3. Revolutionize your Returns

To address the central issue directly, while marketplaces have adequate systems for managing returns, brands often need more logistics, quality checks, and determining if returned inventory is sellable. An advanced tool can streamline these processes, allowing for real-time tracking of returns and efficient management of post-purchase journeys. This will help reduce return-to-origin (RTO) rates and save on costs, ensuring a smoother and more cost-effective fulfillment process.

[Suggested reading – How Technology Minimizes Return To Origin (RTO) in Logistics?]

4. Robust Your Retail Game

A game-changing omnichannel retail management solution will make managing all the complexities of backend operations easy. The first tip is to invest in a solution that gives you complete visibility across all the sales channels. You should be able to process and control store orders manually or automatically. For instance, store-to-store transfers can be made if the product is unavailable. You can do it manually when needed, or it will hop automatically. 

With complete control, you can offer features like an endless aisle to your customers and not miss any sales. Lastly, if you have an existing ERP or POS system in your stores, your omnichannel solution should be able to integrate seamlessly. 

5. Quick Ways of Quickcommerce

With the right choice of e-commerce solution that integrates seamlessly with the Quick Commerce platform, you can now sell everywhere while technology manages everything for you from one end. It covers everything from automated purchase order creation to handling bulk orders and allocating the proper logistics.

With accurate data reports and analytics, you can track the demand and manage inventory effectively on the backend, all while enjoying real-time visibility of your orders and stock levels. But here’s the chase: your solution should be flexible and well-integrated so that you don’t need to face any challenges in the quick-selling game of quick-commerce 

Smart Order Fulfillment, Strong Business Foundations!

Mastering order fulfillment is the key to long-term success in e-commerce. Solid foundations can overcome the hurdles of every sales channel. Where does it come from? It comes from investing in solutions at the right place and time so that the base is more potent, and all you need to worry about is scaling your business.

Related Post –

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Why is the Warehouse Management System (WMS) important for E-commerce Supply Chain? https://unicommerce.com/blog/top-reasons-why-warehouse-management-system-is-important-for-supply-chain/ https://unicommerce.com/blog/top-reasons-why-warehouse-management-system-is-important-for-supply-chain/#respond Mon, 25 Sep 2023 07:37:16 +0000 https://unicommerce.com/?p=289339 The post Why is the Warehouse Management System (WMS) important for E-commerce Supply Chain? appeared first on unicommerce.com.

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In today’s world, the importance of efficiently receiving and storing products is a priority for entrepreneurs. To maximize profits, you need an advanced warehouse management system.

The supply chain comprises the constant flow of goods and services, from raw materials to the production process to the final product delivered to the customer. Warehouse storage is integral to this procedure and offers fast and effective logistics options. A robust ERP warehouse management system (WMS) can eliminate all bottlenecks, including volatile supplies, delays, etc.

It is impossible to imagine a free-flowing logistics supply chain. In short, ERP warehouse software can be used to deliver products and services accurately and efficiently.

What is a Warehouse Management System?

Warehouse management includes supporting and improving the functionality of various warehouses and distribution centers. The planning and day-to-day management of resources in the warehouse are important and include activities related to inventory monitoring and transportation.

When an item is picked from the warehouse or packed for shipment, WMS records these steps and updates the system. With WMS, inventory data is 100% accurate, allowing distributors to process orders and replenish goods more efficiently. More importantly, companies trust their warehouse partners more when they can rely on their products being shipped correctly every time.

Why is the Warehouse Management System important in E-commerce Supply Chain Management?

A Warehouse Management System (WMS) is vital for optimizing supply chain operations, ensuring efficient inventory management, accurate order processing, and improved overall productivity. It streamlines logistics, enhances visibility, and enables effective decision-making for a successful and competitive supply chain. You need a robust WMS for the following reasons:

importance of warehouse management system for supply chain

You need a robust WMS for the following reasons:

1. To manage your inventory

A warehouse management system improves inventory management by enhancing order processing and reducing order cycle times. WMS is designed to manage all warehouse activities, making inventory management faster, easier, and more efficient. Information is updated in real-time, so the WMS provides accurate feedback, allowing companies to respond quickly to customer inquiries.

[Related read: Challenges of Managing Inventory in Multiple Warehouses]

2. For accurate stock registration

WMS accurately tracks where inventory is stored, the number of units available, and the items that need to be shipped. Clarifying these details will significantly shorten the life cycle of the order. WMS reduces human error and enables distributors to proactively manage inventory with pinpoint accuracy.

3. To optimize inbound and outbound processes

The general warehouse management system is equipped with tools capable of automating processes, creating KPIs, and coordinating ongoing operations to collect information in real-time. The WMS can effectively control the use of both effort and space to reduce the waste of resources. Integrated intelligent technology helps users determine the ideal place to store specific materials, products, or equipment needed for the best warehouse workflow.

4. To improve logistics

With WMS, you can reduce logistics management errors by capturing each stage of the required inventory lifecycle. Supply chain management is greatly simplified when WMS can be used to maintain detailed order records. This improves inventory accuracy, management, and customer satisfaction.

5. For effective customer service and monitoring

It’s important to have the products you need in stock and for your customers to get what they ordered. WMS improves inventory pick-up accuracy and simplifies load organization and monitoring. Employee assignments, routes, and intersections are easy to manage with WMS.

6. To get real-time updates

Receiving real-time updates is one of the most important factors in ensuring product accuracy. With WMS, suppliers and businesses can see what is currently in stock and know exactly what to sell or ship without delay. This eliminates inventory tracking delays and allows common items to be replenished before stock levels drop. In addition, WMS keeps a complete record of all activities in the ordering process so that distributors and warehouse employees can be informed of where their orders are.

7. To optimize the supply chain

WMS simplifies the entire warehouse process, from warehouse to warehouse, improving operational efficiency and reducing costs. Warehouse workers ensure the elimination of unproductive activities. These time and cost savings, along with process improvements, are passed on to partners to help them improve their operations.

Read how Marico Limited achieved 100X Growth in Sales & a 99.9% + Order Fulfillment Rate with seamless supply chain management

8. To reduce operating costs

Well-designed WMS software automates all warehouse supply chain processes. Standardizing this process allows suppliers to schedule more frequent cycles, keeps their business consistent, and eliminates the need to accelerate shipments to fulfil customer orders.

Appropriate WMS software allows warehouse workers to complete tasks efficiently and reduces the number of people who manage all supply chain activities to make the warehouse more fluid.

In this way, the system improves operational efficiency and reduces the participation of redundant staff, reducing costs and time and leading to higher delivery volumes.

9. To access data easily

Warehouse managers may not be able to directly check the inventory of items or manually control what needs to be restocked. With WMS, resellers and businesses can track archived inventory anytime, anywhere. Access to WMS can be time-saving for both the warehouse company and the organizations it serves.

10. To improve business operations

Warehouses are important in ensuring that a company achieves its operational goals. The warehouse management system (WMS) adds efficiency, consistency, and quality control to the process. It streamlines all stages of the order fulfilment process by moving goods through the warehouse at full speed. Employees have exactly what they need at the right time to create more work in less time. The WMS ensures operational efficiency and helps businesses apply optimal organizational management strategies.

See how Unicommerce’s robust WMS helps e-commerce businesses manage their warehouse operations  –

Conclusion

In short, a warehouse management system (WMS) is designed to positively impact logistics supply chain operations. It is simplified and minimalistic because all items in the warehouse are always accounted for in real-time. You can rest assured that the work will be completed accurately in a short time, and you will be satisfied with the end product that your customer has received.

Related Read:

Uncover Leading Brands Success with Unicommerce! –

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E-commerce Fulfillment in the Philippines: How to Boost Operational Efficiency and Profitability? https://unicommerce.com/blog/ecommerce-fulfillment-in-philippines-how-to-boost-operational-efficiency-and-profitability/ https://unicommerce.com/blog/ecommerce-fulfillment-in-philippines-how-to-boost-operational-efficiency-and-profitability/#respond Mon, 22 Aug 2022 11:28:56 +0000 https://unicommerce.com/?p=274726 The post E-commerce Fulfillment in the Philippines: How to Boost Operational Efficiency and Profitability? appeared first on unicommerce.com.

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E-commerce in the Philippines is slated to have a promising future. With many social media users and digital natives, e-commerce is expected to grow at a 17% Compound Annual Growth Rate (CAGR) through 2025.

The e-commerce trajectory in the Philippines received a stellar bump during the pandemic, and since then, a mix of global and local retailers have been invested in growing their market share.

However, the success of businesses also depends on their ability to adapt quickly to consumer expectations. For instance, more consumers today expect quicker or free shipping and sometimes same-day delivery.

They seek out discounts, offers, and deals, as well as access to products, as the need arises. They want products delivered within the expected time frame.

Ensuring optimized e-commerce fulfillment in the Philippines will give businesses a competitive edge. But what does that entail?

1. Automate for More Efficiency

E-commerce has made extensive technological advancements, enabling businesses to bring more efficiency and scale to their operations. The onset of the pandemic accelerated adoption as well as innovation by a large number of companies.

However, many are playing catch-up and are still struggling with several challenges. For instance, businesses still use spreadsheets to keep track of orders and manage inventory. Without automation, it’s easy to make mistakes, mix up deliveries, and lose customers. This is also a time-consuming process that takes up more labor.

Another challenge is that some businesses use software that is not properly integrated. This increases the scope for duplication and chaos. Companies need to leverage a comprehensive solution that enables e-commerce fulfillment in the Philippines.

2. Companies Embracing Change:

Higher consumer expectations have pushed several brands to make early investments in enhancing their e-commerce fulfillment needs in the Philippines.

Case study 1: Ellana Cosmetics

fifo vs fefo - which stock rotation methods suits your business best

For instance, sustainable beauty product brand Ellana Cosmetics, which launched in 2007, desperately needed a single, unified tech interface to optimize fulfillment operations. Without it, they faced some challenges – delays in order fulfillment, sales operations across channels remained unaligned, narrow segmentation of customer base across regions, and inaccurate/ incomplete business reports and analytics.

By adopting a technologically advanced and integrated warehouse management solution, Ellana Cosmetics simplified its shipping and delivery processes to serve a wider audience. They also seamlessly managed their live catalog count of 1.5K+ items. They added integrations such as Lazada, Shopee, Shopify, and logistics platforms such as Fleet XDE. With these steps, their fulfillment rate efficiency jumped to 99.99%.

Read Ellana Cosmetics Case Study – How Unicommerce’s helped Philippines-based beauty brand, Ellana Cosmetics achieve 99.99% order fulfillment rates

Case study 2: Edamama

Edamama, a favorite destination for mom and baby products, also underwent a complete fulfillment operations revamp. Despite the spike in the brand’s sales, especially in the personal care product category, it faced severe operational bottlenecks across vendors and other demand channels.

The company’s challenges ranged from real-time order flow from site to warehouse management, inventory management across multiple vendors, integration from the old system to delivery partner systems, and difficulty maintaining real-time inventory and order updates.

These challenges collectively threatened to impact the brand’s performance, profitability, and quality of customer service. It could have led to incorrect orders, delays in orders reaching consumers, demand-supply mismatch, and loss of consumer trust.

A robust vendor management system helped streamline all inventory. Adopting a comprehensive supply chain technology solution enabled the brand to easily manage operations across 400+ registered vendors and 1,000+ brands. The brand is now about to dispatch thousands of products every month.

Read Edamama Case Study – How Unicommerce’s Robust Dropship Solution Enabled Edamama Achieved 99.99%+ Fulfillment Rate

3. Solutions to Optimize E-commerce Fulfillment in the Philippines

Just as much as companies struggle with access to technology, they are also flooded with too many options, which makes it confusing. e-commerce companies may not understand how to integrate multiple systems that talk to each other. Also, since every company is unique in terms of its products, customers, and geographical presence, it will have individual fulfillment needs.

Today, a provider of state-of-the-art e-commerce fulfillment management systems can offer companies a customized solution relevant to their needs. By leveraging such a unified, tech-enabled system, e-commerce fulfillment can be a streamlined process for businesses in the Philippines.

A system that automates a range of repetitive tasks enables businesses to predict where products are in the supply chain at any given time. You can access this system on the go from your smartphone. 24/7 tech support is a valuable add-on to this mix. Last but not least, the system throws up analytics that offer insights into consumer interests, purchase history, and product or brand loyalty.

Here’s a peek at three core solutions available to online retailers to help them tackle e-commerce fulfillment in the Philippines to bring efficiency and scale to their operations.

1. Order Management System (OMS):

This is a digitized system to manage the complete life cycle of every order. Leveraging the system, businesses can track all information. This includes when the order entry was made, end-to-end inventory management, fulfillment cycle, and post-sales service. Order management software creates visibility for both the business and the consumer, bringing transparency into the transaction.

2. Inventory Management System:
One of the key challenges for businesses is that they risk overstocking too much inventory. On the other hand, they also grapple with out-of-stock situations. Predicting which stock and how much stock to keep is better executed with technological intervention.

This is where an Inventory Management System plays a key role in helping businesses make sense of their inventory flow issues. The system helps to track trends based on consumer interest in products. The system throws up a warning when stocks are running low and flags cases of overstocking. The latter leads to a loss in revenue, especially if the excess stock takes up warehouse storage space.

3. Warehouse Management System (WMS):
Most e-commerce businesses do not own their storage units. Hence, they lease space in a warehouse, which comes at a cost. A state-of-the-art WMS enables them to oversee all warehouse operations from the comfort of their smart device.

They can monitor the movement of goods into and out of the warehouse and optimize how much inventory is to be stored at any given time. This ensures that consumers can access products on their wishlist while never using space unnecessarily.

In Conclusion

Access to tech-enabled e-commerce fulfillment has helped thousands of businesses in the Philippines boost profitability in several ways. For instance, companies need not own a warehouse. Hence, they can save resources by avoiding hiring and training warehouse staff.

They can integrate their tech stack into a single, unified system, which can be operated from one’s smartphone. Even if the owners are travelers, they can track the cycle of orders end-to-end. Businesses can also integrate their website or app with a range of e-commerce platforms and be able to track purchases across multiple channels. The collective result is higher efficiency and an opportunity to scale and grow revenue faster.

Related Read –

Uncover Big Brand Success with Unicommerce!

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Top 6 Essential WMS Features for Unleashing Operational Capabilities https://unicommerce.com/blog/role-of-warehouse-management-system-in-structuring-and-organizing-warehouses/ https://unicommerce.com/blog/role-of-warehouse-management-system-in-structuring-and-organizing-warehouses/#respond Wed, 18 May 2022 10:19:33 +0000 http://www.unicommerce.info/?p=9076 The post Top 6 Essential WMS Features for Unleashing Operational Capabilities appeared first on unicommerce.com.

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You might have a brilliant product and a sales funnel that slides your customers easily to check out. But if your fulfillment operations are not smooth, the online retail will not achieve its true potential.

Significance of Order Fulfillment in Warehouse Management

Fulfillment operations primarily refer to the process of getting a product delivered to the right customer at the right time after a successful sale.

Order fulfillment is the process of receiving an order and executing it by making it ready for delivery to its intended customer. It may involve warehouse pickup, packaging, labelling, and shipping. The process may slightly differ from business to business. But the motto remains the same – the faster the delivery, the happier the customer.

As customers, when we want something, we want it right away. However, as the seller, this is easier said than done. Order fulfillment may not be the most exciting aspect of running an e-commerce business and you may overlook it. But the truth is each element in the process impacts an online seller’s income and profit.

Major Processes Involved in the Order Fulfillment

There are many moving pieces involved in getting the order to the customer’s doorstep. From locating the product to picking the right packaging, each step is important for optimized fulfillment operations.

major processes involved in the order fulfillment

There are majorly five touchpoints in order fulfillment:

  1. Receiving 

Being the first step, receiving is indeed the most important process, because before processing the goods to the final destination, it’s important to first receive them in the warehouse. To perform this process smoothly, a WMS must authenticate that warehouse has received the right product, in the right quantity, in the right quality, at the right place, and during the right time. 

  1. Putaway 

Putaway is the next process that includes the movements of goods. While this process seems easier to execute, failing to implement its application can cost huge losses. WMS plays a major role, as it enables the businesses to create putaway while saving them from impairing operational productivity. 

Related read – Simplifying Receiving and Putaway Operations of Warehouse: Prerequisites of Warehouse Management

  1. Storage

Storage is the process of storing inventory at the right place. If this process is executed properly, the business process can maximize the available storage area and increase productivity. 

  1. Picking and Packing 

Picking is the warehouse process that involves the collection of products in a warehouse for order fulfillment. While this process is directly related to the previous process, streamlining this can optimize cost up to a certain amount. 

  1. Shipping and QC 

The journey of goods reaching the final destination concludes with this process. This process is also crucial as it is directly associated with the customer. If the right products are not dispatched to the right customers, it can affect the overall customer experience. 

  1. Reporting 

Last but not least, this step is imperative to determine whether the order has been fulfilled or not. It includes analyzing inventory and order reports across the warehouse. Additionally, this step also determines the inventory and order forecasting to understand the overall warehouse labor needs. 

6 Ways to Perform at Scale with a Robust Warehouse Management System (WMS)

A well organized and structured warehouse with reliable and efficient performance is a huge asset for retail business. There are many factors that affect smooth warehouse operations. Overlooking or underestimating these minor details can end up causing unforeseen problems. This has a direct impact on order fulfillment.

increase performance with robust Warehouse management system (wms)

1. Batch Management: By making batches of inventory, a business can minimize the bad inventory entirely. Moreover, businesses dealing with FMCG and perishable goods can also adhere to expiry management methods, such as FIFO and FEFO, which eventually enables stock rotation, based on its manufacturing and expiry dates.This is essential for pushing out old inventory and avoiding any damage due to longer periods of storage.

2. Cycle Count: Implementing the right inventory cycle count methods not only reduces or eliminates the need for periodically or annually counting the physical inventories but also enables a business to have real-time and faster updates on its day-to-day operations.

3. Shelf Management:  A warehouse consists of multiple shelves in order to segregate the products separately without any damage. Managing shelves correctly can bring overall harmony to the operations. 

4. Bundle Management: Product bundling is a great way to lure your customers and make them feel like they have got a steal deal. It is a process of clubbing multiple SKUs together and sell them in combo packs. But sometimes, it becomes difficult to manage the processes involved in it, from monitoring the availability of individual products to managing them for multiple sales channels. To manage the flow seamlessly, Bundle Management features plays an important role. 

5. Barcoding: Barcodes are a machine-readable representation of numerics and characters. They generally consist of bars and spaces and are used in tracking inventory at an operational level.

6. B2B Bulk Order Processing: Some WMS solution providers also offer bulk order processing feature through which you can process large quantities of B2B orders at one go seamlessly. 

An effective warehouse management system (WMS) enables you to perform a plethora of tasks with utmost efficiency and accuracy. Moreover, if you follow the above-mentioned processes with discipline, you will be able to deliver right products at right place on right time, eliminating any sorts of order returns. Thus, go ahead and deploy a robust WMS technology in your system today and reap the benefits of automation.

Related read –

Discover Unicommerce’s Success Story with Leading Brands –

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Comprehensive Guide To GST Readiness For E-commerce Sellers in India https://unicommerce.com/blog/comprehensive-guide-to-gst-readiness-for-ecommerce-sellers/ https://unicommerce.com/blog/comprehensive-guide-to-gst-readiness-for-ecommerce-sellers/#respond Wed, 28 Jun 2017 11:14:29 +0000 http://blog.unicommerce.com/?p=731 The business in India has always been impacted by the complex tax structures, which acted as a deterrent for planning efficient business operations. Every state has imposed its own set of rules and taxes on the business holders. The lack of clarity on the tax structure has resulted in a chaotic tax environment for the […]

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The business in India has always been impacted by the complex tax structures, which acted as a deterrent for planning efficient business operations. Every state has imposed its own set of rules and taxes on the business holders. The lack of clarity on the tax structure has resulted in a chaotic tax environment for the business industry.

The introduction of Goods and Services Tax (GST) will mark a significant move in the field of tax reforms in India. By amalgamating major Central and State taxes into a single tax class, it would abolish double taxation in a simpler way and object the creation of a common national market. GST will replace all indirect taxes levied on goods and services by the Central and state governments.

As GST would be applicable on “supply” of goods or services as against the present concept of tax on the manufacture of goods, sale of goods and provision of services, same will lead to many benefits not only for the consumers in terms of a reduction in the overall tax burden on goods, which is currently estimated to be around 25%-30% but also it will mark significant leads in Trade.

GST will be categorized in two components with State and Centre as separate stakeholders. Components of Dual GST:

Out of 7 Union Territories*, UTGST is applied on only 5 of them, however, SGST can be applied in Union Territories such as New Delhi and Puducherry, since both have their individual legislatures, and can be considered as “States” as per GST process.

E-commerce organizations (Sellers & Marketplaces) are looking forward to the implementation of GST expecting high clarity, and dismissal of state specific rules and multiple Taxes.


*List Of 5 Union Territories considered under GST:

  1. Andaman and Nicobar
  2. Lakshadweep
  3. Dadra and Nagar Haveli
  4. Daman and Diu
  5. Chandigarh

Sellers and Marketplaces have to meet basic requirements to run business post GST implementation.

Know more about: Plug ‘N’ Play Accounting System Integration

Below are the mandatory requirement from Sellers and marketplaces which will be implemented in Uniware to help sellers in smooth and issue free order processing from 1st July, 2017:

1- GST Number/ Registration:


All sellers mandatorily require to register under GST. So now even e-commerce sellers whose aggregate turnover does not exceed the threshold limit for registration will still have to compulsorily register to sell online. 

Key Points for Registration:

  • If a seller has business with same PAN in different states is now expected to register separately for each of the States where he has a business operation.
  • If a seller has two business verticals in a state, he/she may obtain a separate registration for each business vertical.
  • If seller has two different businesses with two TIN numbers in the same state, he can have common GST registration for both.

As per this mandatory requirement, seller has to update GST No. in Facility, Billing Party, Customer and vendor for order processing from 1st July in Uniware. Validation of GSTIN will be done using state code & PAN rules which will be already stored in backend to validate the GSTIN filled by the supplier.

2- HSN Number:

HSN Code stands for Harmonized System Nomenclature. HSN number is mainly used for classifying goods to compute Value Added Tax in India. Now, same classification code (HSN) is adopted for classifying Goods and Service Tax for GST as well.

Under GST, the HSN code would be utilized by a taxable individual for classification of goods , but the format of HSN code will be based on the taxpayer’s turnover. When preparing Tax Invoice for GST, the HSN number must be mentioned on GST Tax invoice and also to be declared while filing the GST returns.

To mention HSN codes for the products will also become mandatory for sellers in Uniware as well. Same information will be saved under item type (products) created in Uniware.

3- Issue of Tax Invoice Under GST: 

Every registered person is required to issue a tax invoice at the time of supply of taxable goods/services and the invoice shall contain following particulars:-

Supply of Goods/Services

  1. Description of goods/services;
  2. Quantity of goods;
  3. Value of goods/services;
  4. Tax charged on Value of goods/services; and
  5. Such other particulars as may be prescribed.

Further the invoice shall be prepared in triplicate, in case of supply of goods and duplicate in case of supply of services. Uniware will provide all above required changes and number of invoices as per supply of goods through its portal.

Below mentioned is the detailed information for the way of issuing Invoice after GST is implemented, which will be provided by Uniware as well. Invoices generated through Uniware will also have the prescribed format as described above.

Note:  Fetching of Marketplace Invoices:

Unicommerce would not only provide GST ready invoice templates for both B2B and B2C transactions, but also overhaul the architecture to fetch invoices from marketplaces, instead of pushing the invoices to marketplaces, wherever required. For example, Unicommerce is moving to the new version of APIs in case of Flipkart to be able to fetch their invoices, as well as pass on the HSN code to the marketplace etc. to comply with the GST regime.

4- Credit Note:

 Credit note will be reflected in the monthly return in which such notes have been issued.

When a Credit note should be issued:

When a registered dealer issues a tax invoice and in these invoices the tax amount is greater than the tax return filed for that period, seller has to issue credit note to the partner business owner containing such particulars as may be prescribed.

In Uniware as well, credit notes will be provided for Sale Order, Inter-state Gatepass and purchase order returns in the prescribed format set by Government bodies.

For returns filing post July 1, 2017 credit note is required only if GST was applied on the corresponding invoice.

5- Return filing Process Under GST:

 Monthly billing will constitute filing of all below mentioned forms on prescribed dates:

  • Form GSTR-1: Upload all invoice-wise details of supplies to registered taxable persons and aggregate value of supplies to unregistered persons made through the e-commerce platform must be provided. (By 10th).
  • Form GSTR-2A: The aggregate amount of tax collected by e-commerce operators (Tax collected at Source or TCS)** in the previous month will be auto populated, based on Form GSTR-8*** filed by the e-commerce operators. (On 11th).
  • Form GSTR-2: The details of tax collected by the e-commerce operator can be accepted or modified in Form GSTR-2 (On 15th).
  • Form GST ITC-1: Any discrepancy in supplies furnished with supplies reported by the e-commerce operator is made available to a supplier. The discrepancy must be rectified in the return for the month in which it is communicated.If not rectified and the value of supplies furnished by the operator is more than the value furnished by the supplier, the differential amount along with interest will be added to the tax liability of the supplier for the succeeding month.(On 21st).

**tax collected by e-commerce operators (Marketplaces) Every e-commerce operator should collect tax @ 2% of net value of taxable supplies, out of payments to suppliers (sellers) supplying goods or services through their portals.

 Net value of taxable supplies = Value of taxable supplies made by all registered taxable persons through the marketplace, other than notified supplies on which tax is paid by the marketplace (-) Value of taxable supplies returned to the sellers.

***GSTR-8– Form GSTR-8 will be filed by every e-Commerce operator (marketplace), who is required to collect tax at source (TCS) under GST electronically through the https://www.gst.gov.in/.


 6- Compensation Cess-

A new cess with the name “GST Compensation Cess” for first 5 years on some specified items will be implemented which will be credited to the GST Compensation Fund. The need for this cess rise to compensate the manufacturing states, as GST is a destination cum consumption based tax, so in order to compensate states from this kind of probable loss this will be implemented along with CGST, SGST and IGST.

Refer below link to know the Compensation Cess rates defined by government as defined in Central Board of Excise and Customs: CBEC-Compensation Cess

Uniware will reflect this cess as on the Invoices as well.

7-Tax Calculation as per consumption of Goods supplied by Supplier Under GST:

Refer below table reflecting the tax to be calculated as per location of supplier and place of Supply, we have tried to cover all possible conditions containing all the calculations:

Note: Go Live date for these changes will be (Jul 1, 2017) in Uniware and if prepaid order is received on Jun 30 invoice is printed on Jul 1, GST will not be applied in this scenario. However, if same order will be COD, then GST will be applied.

8- Impact of GST on Warehouse Management Processes:

GST regime will not only affect the e-commerce operators and the sellers but will also have important effects on warehousing management processes.

As per current tax regime, there is no uniformity and ease in tax implementation across various warehouse management, logistics and supply chain management processes. Effect of taxation at every step of these processes majorly affect the utilization of available resources. In present scenario, the location of warehouse is generally chosen to evade the taxes and reduce the logistics costs.

With GST, warehousing processes will also become uniform with the introduction of common market for Goods and services, breaking the state barriers and borders. This will lead to reduction in number of warehouses, and more organized warehouses enhancing the overall efficiency.

Unicommecre’s warehouse management system, Uniware is also ready to handle all warehouse processes such as inbound, outbound etc. as per new GST rules. All such changes will reflect in intra state/ interstate transfer documents, such as Gatepass.

To sum up, the below table describes the compliance requirements for GST regime and how Uniware will help the sellers in incorporating the changes at their end:

Conclusion:

Taxation on e-commerce transactions in the current regime is confusing as different states have different levies of tax and there is no clarity on Taxes levied on goods and services. The GST regime will now bring uniformity in the taxation process for e-commerce platforms and sellers.

  • Seamless availability of input credit will result in reduced cost of operations for suppliers such as warehousing, logistics, marketplace commission, etc. as they will now be able to take the credit of tax paid on inputs, which was until now adding up to their cost.
  • Unified common national market in India for the goods and services, regardless of whether they are sold at physical stores or online. GST will bring greater access to the customers across the nation for sellers.
  • Prevent cascading of taxes as Input Tax Credit will be available on goods and services at every stage of supply.
  • Simplified and automated procedures for various processes such as registration, returns, refunds, tax payments, etc.

As a supplier, it is important to plan for the GST regime. Awareness of the compliance requirements under GST like registration for GST number, documentation, filing of returns etc., planning and preparation for entering into GST module of taxation will ensure that suppliers can capitalize on the new era of e-commerce in India.

Discover Unicommerce’s Success Story with Leading Brands –

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Unicommerce Organized a Grand e-Commerce Seller Meet in Hyderabad https://unicommerce.com/blog/unicommerce-organized-a-grand-e-commerce-seller-meet-in-hyderabad/ https://unicommerce.com/blog/unicommerce-organized-a-grand-e-commerce-seller-meet-in-hyderabad/#respond Tue, 06 Sep 2016 23:18:18 +0000 http://blog.unicommerce.com/?p=599   The seller meet was organized in Hyderabad on 3rd September, 2016, which was another grand success for Unicommerce after its Pune event, earlier this year. The main objective of the event was to discuss issues faced by sellers in online selling, and how Unicommerce is helping to solve those issues, especially through launch of […]

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The seller meet was organized in Hyderabad on 3rd September, 2016, which was another grand success for Unicommerce after its Pune event, earlier this year.

The main objective of the event was to discuss issues faced by sellers in online selling, and how Unicommerce is helping to solve those issues, especially through launch of some new features like Payment Reconciliation and collaboration with quality listing partners.

 

The Seller Meet took place at The Golkonda Hotel in Hyderabad, where a good mix of sellers including those starting just now and sellers already selling on multiple marketplaces took part. It was a 3 hour interactive session, where the audience discussed in depth about the challenges they are facing and were very happy with the solutions they got from the Unicommerce team conducting the event.

 

The event also featured some of the existing customers of Unicommerce who spoke very highly about the product and support provided by the entire Unicommerce team.

 

The session came to an end with high tea arrangements for the sellers, which served as a good networking opportunity for sellers.

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Lendingkart Group Partners with Unicommerce to Facilitate Easy Loans to its SME Customers https://unicommerce.com/blog/lendingkart-group-partners-with-unicommerce-to-facilitate-easy-loans-to-its-sme-customers/ https://unicommerce.com/blog/lendingkart-group-partners-with-unicommerce-to-facilitate-easy-loans-to-its-sme-customers/#respond Tue, 30 Aug 2016 17:04:46 +0000 http://blog.unicommerce.com/?p=573 Tie-up aims to offer collateral-free working capital loans to online sellers & retailers within 72 hours   India, August 29, 2016: Lendingkart Group has announced a strategic partnership with Unicommerce, the Delhi-based multichannel order fulfillment platform. The partnership will enable Unicommerce’s consumer base to get access to collateral-free working capital loans through Lendingkart Group’s NBFC […]

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Tie-up aims to offer collateral-free working capital loans to online sellers & retailers within 72 hours

 

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India, August 29, 2016: Lendingkart Group has announced a strategic partnership with Unicommerce, the Delhi-based multichannel order fulfillment platform. The partnership will enable Unicommerce’s consumer base to get access to collateral-free working capital loans through Lendingkart Group’s NBFC within 72 hours of application at a discounted rate. Both players make an ideal synergistic match as they have been closely involved with SME merchants and understand the immense potential that lies untapped in this segment due to inadequate financial support.

The tie-up between Lendingkart Group and Unicommerce is aimed to provide working capital loans to Unicommerce retailers. The technology-backed Lendingkart Group’s NBFC enables loan disbursement process that comprises minimal paperwork and offers collateral-free loans to online retailers within 72 hours. It assesses the creditworthiness of a candidate through API scrutiny and online data scraping to ensure credibility rather than conventional methods that promote red-tapism. The swift assessment process takes a few hours and NBFC ensures that loan amount reaches the borrower within 2-3 days of the loan application. Unicommerce retailers will be offered discounted working capital loans enabling them to increase their inventory, pay for their liabilities and scale up their businesses.

 

At the announcement, Harshvardhan Lunia, Co-Founder and CEO, Lendingkart Technologies, said, “There are massive growth prospects for Indian retailers within the rapidly changing retail scenario of the country. Businesses often register losses and face challenges related to cash flows owing to their capital deficits. The tie-up with Unicommerce will help the Group to eliminate such challenges for its customer base and will moreover, enable retailers to increase their efficiency, scalability, and profitability with quick and easy working capital loans.”

 

Ankit Pruthi, CEO, Unicommerce said, “We understand that working capital finance is one of the key needs of SMEs in growing their business, and we believe that this partnership with Lendingkart Group will further boost our customers’ business. We are already helping the SMEs to improve their online sales through our product, and with this partnership, we are hoping to provide more avenues for growth to our customers.”

Lendingkart has developed technology tools, to provide lending solutions to lenders, which utilizes a unique mix of Big Data analytics, decision science, and other proxies to derive credit comfort and assess the creditworthiness of small business owners. Most of the credit risk analysis at the Group’s NBFC, is done digitally so that loans can be disbursed within 72 hours from the time of application.

About Lendingkart Group
Lendingkart Technologies is a fin-tech startup in the working capital space. It has developed technology tools based on big data analytics that facilitates lenders to evaluate borrowers’ credit worthiness. Aadri Infin Limited, a Lendingkart Group Company, is a non-deposit taking NBFC, offering small business loans for SMEs in India. The NBFC aims to transform small business lending by providing easy access to credit for SMEs. The NBFC uses technology and analytics tools, analyzing thousands of data points from various data sources to assess the creditworthiness of small businesses rapidly and accurately. Lendingkart Group aims to make working capital finance available at the fingertips of entrepreneurs, so that they can focus on business instead of worrying about the gaps in their cash-flows. We are currently based in Ahmedabad, Bangalore and Mumbai, but have a service reach across India. To know more, please visit http://lendingkart.com/

About Unicommerce
The SaaS based multichannel order fulfillment platform allows ecommerce merchants selling on multiple marketplaces like Snapdeal, Amazon, Jabong, Flipkart, eBay and so on, to manage their entire inventory and order fulfillment process through one single platform. In a short span of time, Unicommerce has built a strong customer base of 10,000+ sellers in more than 220 cities including big brands such as Monte Carlo, Swiss Military, Classic Polo, House of Anita Dongre, Reliance, Mahindra Retail, Carat Lane, Raymond etc. Ecommerce sellers love this product, as it helps them grow their sales, reduce costs and improve their seller ratings. For further information about the company or the product, please visit https://unicommerce.com/

Economic Times: Lendingkart Group Partners with Unicommerce to Facilitate Easy Loans to its SME Customers

Business Standard: Lendingkart Group Partners with Unicommerce to Facilitate Easy Loans to its SME Customers

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Ecommerce Sellers​’​ Meet by Unicommerce in Pune https://unicommerce.com/blog/ecommerce-meet-by-unicommerce-in-pune/ https://unicommerce.com/blog/ecommerce-meet-by-unicommerce-in-pune/#comments Mon, 20 Jun 2016 17:19:39 +0000 http://blog.unicommerce.com/?p=551   On 18th of June, 2016, Unicommerce organized an Ecommerce Sellers’ Meet in Pune. The purpose of the event was to educate ecommerce sellers about how Unicommerce can help make online selling easy for them. Unicommerce not only ensures that the sellers have more time to focus on their core business operations, but also reduces […]

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On 18th of June, 2016, Unicommerce organized an Ecommerce Sellers’ Meet in Pune. The purpose of the event was to educate ecommerce sellers about how Unicommerce can help make online selling easy for them. Unicommerce not only ensures that the sellers have more time to focus on their core business operations, but also reduces their day to day hassles of order processing and inventory management.

 

The event started with a presentation providing an overview and key features of Unicommerce, followed by an interactive discussion with the sellers. They discussed clearly about the issues they faced on daily basis and were satisfied with the responses they got from the team.

 

Besides, there was a special segment in the event where our existing customers shared their experiences with Unicommerce. Most of them stressed on the necessity of having Unicommerce for hassle free online selling, saying that one can trust the product with their eyes closed.

 

Although initially the event was scheduled for 2 hours, we extended it to another 1 hour due to the overwhelming response from the sellers. Everybody was intrigued by the information shared in the event. And a lot of them requested the team to organize more such events in Pune in the near future.

 

The event came to an end with high tea arrangements for the sellers, which served as a good networking opportunity for them. We must say that it’s been a great experience for us. We look forward to reaching out the dynamic online seller community across India. For further details on the same, please watch out this space.

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Seller Success Story 2 #SellmorewithUnicommerce https://unicommerce.com/blog/seller-success-story-2-sellmorewithunicommerce/ https://unicommerce.com/blog/seller-success-story-2-sellmorewithunicommerce/#respond Tue, 17 May 2016 14:16:04 +0000 http://blog.unicommerce.com/?p=540 Here presenting you the growth story of Satya Singh from Satya Shoes, an entrepreneur from Agra, selling footwear on multiple channels from past 3 years and how Unicommerce empowered the journey! Watch or read his complete story… Hi everyone, I am Satya Singh from Satya Shoes. I am selling online from last two years. And […]

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Here presenting you the growth story of Satya Singh from Satya Shoes, an entrepreneur from Agra, selling footwear on multiple channels from past 3 years and how Unicommerce empowered the journey! Watch or read his complete story…

Hi everyone, I am Satya Singh from Satya Shoes. I am selling online from last two years. And it’s been one year I am doing with Unicommerce. And I would say that it’s a wonderful stuff to increase your business multiples.

I am a seller from Agra and I am doing footwear business from last 20 years. I used have a manufacturing house, but from last 3 years I am doing it online. And the best way to get online is through Unicommerce. You can start your business with no inventory.

Earlier I used to sell around 60-100 pairs of shoes on an average. But after Unicommerce, the best part is that of inventory management. I don’t have to block the inventories for different different channels.

So I can even sell a single pair of shoes across all two or three or four or five market places without blocking my money or inventory. So the best part is the inventory only that I can manage inventory without any hassle and also the order management of Unicommerce is perfect.

It’s been year now, and my business has been increased 5 times. My average selling been has reached to around 500 pairs. And I would say that it’s only due to Unicommerce due to which I am able to manage the orders and each and everything.

Thanks to Unicommerce. Specially, the team is very much dedicated. You can call the support team any time, they ready to help us out at any stage, at any issue. I got training to my staff and to me also, which was easy and hassle free.

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Seller Success Story 1 #SellmorewithUnicommerce https://unicommerce.com/blog/seller-success-story-1-sellmorewithunicommerce/ https://unicommerce.com/blog/seller-success-story-1-sellmorewithunicommerce/#respond Mon, 16 May 2016 17:02:59 +0000 http://blog.unicommerce.com/?p=538 This is an amazing growth story of Md. Adil, a successful entrepreneur from Agra and how Unicommerce empowered the journey! Watch the video or read the full story below… My name is Md. Adil. I am a shoe seller from Agra. I have been into online selling for past 3 years. And I am associated […]

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This is an amazing growth story of Md. Adil, a successful entrepreneur from Agra and how Unicommerce empowered the journey! Watch the video or read the full story below…

My name is Md. Adil. I am a shoe seller from Agra. I have been into online selling for past 3 years. And I am associated Unicommerce from last 1 year. We have family business of shoes and hence, I thought online selling would be better as we can see -these days, sellers are using online platform for their business. And also because Unicommerce is an excellent solution in online multichannel inventory management, better than the other available options in the market.

The advantage that I got from Unicommerce is their customer service, which I liked very much. Whenever, there is any issue whether technical or other, you can immediately reach them through email or call them directly for help.

Besides, through Unicommerce I am able to sell on multiple channels- as it got almost all the major channels integrated, like –Paytm, Flipkart, Amazon, eBay, obviously Snapdeal and so on. At least on the channels I am selling at are available in Unicommerce. That’s why Unicommerce is a better option for me to sell on multiple channels, for multi-management.

Another advantage of Unicommerce – it is very economic (cost effective). Spending 2-3 rupees per order, even if your product is low priced, range between of Rs.500 to Rs.600 then also it’s very economic, very much cost effective.

I don’t think, one should think twice to use Unicommerce.

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