Momentum Warehousing

Maximizing supply chain momentum by driving ecommerce growth through scalable warehousing, omni-channel fulfillment, storage, Amazon FBA prep, and 3PL logistics solutions for MFN ecommerce sellers.

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Q4 FBA Fees 2024 for Amazon Sellers

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Sellers know how Winter comes at Amazon – with a flurry of Q4 FBA Fees this 2024 season. Let’s learn about this year’s price gouge and how sellers can cut costs to peak during the holidays.

Why Is Amazon Raising Fulfillment Fees in 2024?

Amazon is raising their FBA fulfillment fees during the 2024 peak holiday shopping season. Starting in mid-October, these seasonal fee increases are designed to cover higher fulfillment and transportation costs during the busiest time of the year. This news highlights the importance of considering cost-effective alternatives for your e-commerce operations.

What Q4 FBA Fees Are Changing in 2024?

While Amazon’s average holiday peak fulfillment fee remains unchanged for most products compared to last year, they’ve introduced a new peak fee for products priced under $10 in the US. For many sellers, these additional costs can quickly add up, eating into profit margins.

When Do Q4 FBA Fees Increase in 2024?

The peak FBA fees, set to take effect from October 15, 2024, through January 14, 2025, will apply to all products, regardless of size, across various Amazon programs, including US Fulfillment by Amazon (FBA), Canada FBA, North America Remote Fulfillment, US Multi-Channel Fulfillment, and Buy with Prime. It’s important to note that FBA fulfillment fees are calculated and charged when shipments leave Amazon fulfillment centers, meaning that even if an order is placed before October 15, 2024, the higher fees will apply if the shipment is dispatched on or after that date.

How Expensive are QFees in 2024?

Amazon claims that their average FBA fulfillment fees are still 70% lower than comparable two-day shipping options from other major third-party logistics providers. However, at Momentum Warehouse’s fulfillment services offer an even more economical solution of $2/order. This rate is particularly beneficial for small to mid-sized businesses looking to optimize their e-commerce operations during the critical holiday season.

What Does Amazon’s Q4 Holiday Return Policy in 2024 Look Like?

As Amazon has not yet released details about its extended holiday return policy for 2024, which typically allows returns on items purchased between November 1 and December 31 through January 31 of the following year, now is the perfect time to explore more cost-effective fulfillment and logistics options with [Your Warehouse Name]. We’re here to help you navigate the busy holiday season with services designed to save you money while ensuring your products reach customers promptly and efficiently.

What are 3PL Storage Services?

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Are you a business that needs more space to operate? Inventory storage can suck space right up. You may work out of your home or a small retail space. Either way, storing products creates an operational headache. You need a solution. But renting more square footage is not the solution. So what is? You need 3PL Storage Services. This solution may involve Bin Storage, Pallet Storage, Reefer Storage, or Cross Docking Storage.

3PL Storage Services Explained

Third Party Logistics, such as a warehouse, for storage solutions can offer releif. Warehouse storage is a solution for businesses who need access to an optimized warehouse solution whereby they can deliver, store and ship goods from a brick and mortar location to whereever business dictates. There are different types of 3PL storage solutions for different businesses. Lets look at the smallest version of warehouse storage.

3PL Bin Storage Services

For businesses who need online order fulfillment services – they need a warehouse where employees can easily pick and pack orders every day. This access is provided by a bin system connected to a warehouse management system. A pick list is provided to warehouse staff to collect units from bins. Units are collected and then packed into shipping packaging. Storage bins offer unique access to pick and packers who need to get in and out of inventory quickly.

3PL Pallet Storage Services

Pallet storage within a third-party logistics (3PL) environment offers businesses a strategic solution for efficiently managing inventory. In a 3PL facility, pallets serve as the primary method for storing goods, allowing for organized and space-efficient storage. Leveraging advanced warehouse management systems (WMS), 3PL providers track palletized inventory. This WMS optimizes storage space and ensures quick retrievals. Pallet storage services in a 3PL setting facilitates easy scalability. Businesses can flexibly adjust storage capacity based on seasonal inventory levels.

Reefer Storage

Short for refrigerated storage, Reefer Storage refers to specialized storage equipment used for storing goods at cold temperatures. These facilities are crucial for preserving the quality, freshness, and safety of perishable goods. For example, items such as food, pharmaceuticals, and chemicals require storage at a constant tempature throughout their supply chain. Reefer storage units are equipped with refrigeration systems that maintain these specific temperature ranges. This is a unique 3PL storage service, not every warehouse offers.

Cross Docking Storage

Cross docking is like a fast-track lane for pallets in the world of shipping. It’s when pallets unload from one truck and load into to another truck same day. Often times, trucks get stalled in traffic, resulting in pallet storage at the warehouse. This constitutes cross docking storage. Normally a 3PL storage service will offer complimentary storage for overnight cross docking storage. This is a token of good faith provided by the warehouse, knowning that truckers can only move with the speed of traffic, from whereever they are coming from. So, while this is not a formal storage solution offered, it cross docking storage is an informal service provided to customers in need of alittle wiggle room.

B2B Order Fulfillment vs B2C Order Fulfillment

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Navigating the B2B Order Fulfillment Landscape for Business Growth

B2B Order Fulfillment is defined as “Business to Business”.

Reliable business to business order fulfillment partners have never been more critical for the success of ecommerce sellers. Establishing a network of trusted partnered businesses opens up various revenue streams but also enhances operational efficiencies, particularly within the supply chain. Sound relationships here, ensures that the next stage of B2C delivery runs smoothly.

Currently, the global eCommerce fulfillment services market is valued at $97.3 billion, with predictions of a growth rate of 13.9% annually until 2030. Given this competitive arena, selecting the ideal B2B fulfillment provider is a nuanced challenge. This guide will delve into the essentials of B2B order fulfillment to aid your decision-making process.

The Essence of B2B Order Fulfillment – Why It’s Important

The case of Revlon’s bankruptcy in June 2022 starkly highlights the pivotal role of B2B fulfilment optimization. Revlon’s struggle, exacerbated by the pandemic, underscored the complexities of securing and managing raw materials—each lipstick requiring up to 40 distinct components. That means that each tube of lipstick requires up to 40 raw materials or parts, which need shipping and storage for. When a part of the supply chain crumbles, and B2B delivery falls through, it can cause shockwaves through the remaining supplychain.

This example vividly illustrates how competent B2B order fulfillment services could potentially offset such a bankruptcy situation. It emphasizes the service’s value beyond mere product transportation. B2B instead includes comprehensive management of orders, inventory, and timely deliveries between businesses.

Communication in B2B Order Fulfillment

A crucial, often overlooked aspect of B2B fulfillment is the necessity for clear, prompt communication between all parties involved. Successful B2B transactions hinge on transparently sharing the following information:

  • Order Details
  • Inventory Status
  • Addressing any Logistical Challenges
  • Bulk Dropshipping
  • Drone Deliveries
  • Same-Day Services

There’s alot of data here to manage between businesses. That being said, Communication in in B2B order fulfilment is critical so that all moving components work in tandem to ensure profitability.

B2B vs. B2C Order Fulfillment: Understanding the Distinctions

Determining whether your business requires B2B or B2C fulfillment services hinges on your specific operational needs and product journey. For businesses reliant on a complex supply chain for product assembly, like Revlon, B2B fulfillment is essential. Similarly, suppliers to direct-to-consumer brands will benefit from robust B2B fulfillment partnerships.

Conversely, businesses with established warehousing that focus on direct customer deliveries should consider B2C fulfillment solutions.

Key Considerations in B2B and B2C Order Fulfillment

Order Volume

B2B transactions typically involve larger, bulk orders but fewer overall transactions. B2C sees a higher volume of smaller, individual orders.

Cost Implications

B2B order fulfillment generally incurs higher costs due to the need for specialized handling and infrastructure. Conversely, B2C benefits from streamlined, cost-effective processes.

Regulatory Compliance

B2B operations must navigate complex supply chain regulations, including data privacy measures like EDI. Alternatively, B2C faces simpler consumer-focused regulations.

Delivery Expectations

While B2B prioritizes delivery reliability and scheduling, B2C order fulfillment emphasizes speed to meet rising consumer expectations for rapid delivery.

Financial Agreements

B2B order fulfillment often involves negotiated contracts and credit-based payments, contrasting with the immediate payment model typical in B2C transactions.

Pricing Strategies

B2B allows for flexible pricing based on volume and business needs. However, B2C maintains fixed prices for all consumers.

Grasping these differences is crucial for businesses to tailor their fulfillment strategies effectively, ensuring they meet their goals and adapt to the dynamic ecommerce landscape efficiently.

Sustainable Order Fulfillment in Ecommerce

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Sustainability in Ecommerce Order Fulfillment

Sustainable order fulfilment takes center stage in 2024, as waste packaging piles up from 2023’s ecommerce deliveries. The consumer market that endorses corporate responsibility is now demanding solutions for packaging waste and environmental justice. As a result, businesses are being called upon to align their operations with sustainable order fulfillment practices – both applied to products and people picking orders. Embracing this form of ethical ecommerce fulfillment shows a pivotal shift towards a more conscious awareness towards equitable supply chain management.

Sustainable Order Fulfillment

Have you ever received a big box, stuffed with lots of protective packaging for just a tiny item? This reeks of waste. Consumers feel it each time they open a carton in their kitchen.

The era of unnecessary packaging and inefficient product design is coming to an end. Why? Part profit and part progressive cultural changes are compelling companies to act. Companies are taking significant steps to minimize waste by reducing box dimensions. Redesigning carton dimensions to waste less space, saves on shipping. In turn, this sustainable order fulfillment practice protects profits.

In addition, sellers are moving to eco-friendly materials. This reduces the carbon footprint of their product and supply chain. Indeed, research indicates a growing consumer eagerness to invest in sustainable order fulfillment, particularly among younger folks. Neilson Research highlighted that a 71% of millennials prefer to buy brands that offer eco-conscious products and are even prepared to pay a premium for such options.

Ethical Ecommerce Fulfillment and Local Sourcing

The emphasis on fair compensation, safe work environments, and prioritizing local suppliers are boosting the concept of ethical Ecommerce fulfillment. These efforts help to diminish the environmental toll of long-distance transportation and also promote equitable treatment of warehouse workers. Coloring equity into sustainable order fulfillment also involves protecting warehouse workers from burn out. Pick and Packers can have it tough. They walk all day, compete against the clock, and have to do it all over again the next day. Nielsen’s research supports this shift, showing that 73% of consumers worldwide are willing or likely to modify their buying habits to promote ethical order fulfillment.

By integrating sustainable order fulfillment and ethical Ecommerce fulfillment into core operations, sellers will meet the growing consumer demand for equitable environmental responsibility. What’s more they’ll lead by example in the movement towards a sustainable and ethically conscious marketplace.

Order Fulfillment Speed in Ecommerce – Boosting Delivery Times

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A New Era of Speed in Ecommerce Order Prep Times

In the current ecommerce landscape, swift order delivery is no longer a perk but the norm. With the demand for immediate satisfaction growing among consumers, ecommerce sellers are compelled to elevate their order fulfillment speed to lighting fast levels. Let’s explore how fulfillment centers are setting trends to boost ecommerce order prep times.

Order Fulfilment Speed’s New Normal: Same-Day Delivery – But How?

The patience for extended delivery times is waning among consumers, prompting three changes to achieve these swifter order fulfillment speeds.

  1. Companies to enhance their logistics infrastructure – i.e. using local prep centers.
  2. Embrace cutting-edge technologies – robot pick and packers who make no mistakes!
  3. Forge strategic partnerships – shipping with local couriers to achieve fast delivery.

According to a McKinsey report, by 2025, same-day deliveries are projected to constitute 20% of all parcel deliveries, underscoring the urgency for businesses to upgrade order fulfillment speeds.

Hyperlocal Fulfillment Centers

Adopting a local approach to a global strategy, companies are setting up micro-warehouses in key urban locations to achieve faster order fulfillment speeds. CBRE reports a surge in demand for urban warehouses. In fact, leasing rates in prime locations increased by 25% in 2023. This method not only guarantees a boost to ecommerce order prep times, but also reduces warehousing expenses.

Last-Mile Delivery Innovations

The final leg of the delivery process, from distribution centers to consumers’ doorsteps, is witnessing revolutionary changes. Emerging technologies and methods, such as crowd-shipping and intelligent hubs, are enhancing order fulfillment speeds. What’s more, the on-set of AI driven drone deliveries are making deliveries more efficient and secure as well. For example, Ecommerce Order Prep Times will drop to 30 min within 1.7km of a Walmart based drone hub in 2025.

Subscription-Based Fulfillment

The convenience of automatic recurring deliveries is capturing the hearts of consumers. The subscription model, offering the promise of regular deliveries of beloved products, is rapidly gaining popularity. Forecasts suggest the subscription ecommerce sector will expand from $72 billion in 2021 to nearly $900 billion by 2026, highlighting a growing preference for reliable and routine delivery services.

These advancements in order fulfillment speed signify a big shift in how businesses approach ecommerce delivery. They aim to meet exceed current norms on ecommerce order prep time and delivery tomorrow’s future today.

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Warehousing, Logistics, Amazon FBA Prep Support for Amazon FBA sellers, and MultiChannel Fulfillment for MFN Sellers