{"id":13252,"date":"2021-12-02T10:46:50","date_gmt":"2021-12-02T18:46:50","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dcl-v3\/?p=13252"},"modified":"2024-06-10T09:49:09","modified_gmt":"2024-06-10T16:49:09","slug":"pitfalls-of-retail-fulfillment","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/pitfalls-of-retail-fulfillment\/","title":{"rendered":"3 Biggest Pitfalls of Retail Fulfillment\u00a0"},"content":{"rendered":"<p><span data-contrast=\"none\">Shipping products to retailers is much more complex than shipping direct-to-consumer. Retailers have a steep set of requirements that merchants need to meet in order to maintain their contract.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">For a small ecommerce brand just starting out with retail accounts, there many new hurdles to jump when it comes to this new sales channel. Here are the biggest three pitfalls to avoid, and how a 3PL or experienced fulfillment provider will help navigate these aspects of retail before they become a problem.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">How is Retail Fulfillment Different Than B2B Fulfillment?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">First there is a big distinction between fulfilling products to businesses, versus single consumers. This is the\u00a0<\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/difference-b2c-b2b\/\"><span data-contrast=\"none\">difference between B2B and B2C fulfillment<\/span><\/a><span data-contrast=\"auto\">. At first glance, the differentiators are two main aspects: the destination and the volume of products being shipped. But from a fulfillment perspective, the differences between these two types of\u00a0fulfillment\u00a0are vast.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">B2C fulfillment is much simpler because it entails managing single incoming orders and shipping products directly to each consumer.\u00a0<\/span><br \/>\n<span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">With B2B fulfillment (business-to-business), products are going to retailers, wholesalers, or other businesses to either use the products or then sell directly to consumers.\u00a0\u00a0<\/span><br \/>\n<span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">The subcategory of B2B fulfillment, known as retail fulfillment, means products are shipped specifically to stores or retail distribution centers where the products will then be\u00a0broken into smaller batches to be sent to individual stores or\u00a0sold to customers. Retail fulfillment is also sometimes called B2R. Macy\u2019s, Dick&#8217;s Sporting Goods, and Best Buy are some examples of retail stores.\u00a0\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">[BLUE BOX] Industry Insight: With the 2020 ecommerce boom, many digitally native brands have seen tremendous DTC growth. Now that they\u2019ve netted a big following, retail ecommerce is expected to be the next sales channel most brands go after. If you\u2019re a high-growth brand, looking for retail fulfillment support, be sure you partner with a 3PL with experience in the field. Not all fulfillment providers have the same retail experience.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Read more about the\u00a0<\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/difference-b2c-b2b\/\"><span data-contrast=\"none\">distinction between B2B and B2C fulfillment<\/span><\/a><span data-contrast=\"none\">.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">The Biggest Pitfalls of Retail Fulfillment\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">1 Mis-Understanding the Importance of Routing Guides\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">The issue: Merchants often overlook the fact that the <a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/what-is-a-routing-guide\/\">routing guides<\/a> are needed to prepare an order, so they send it to their 3PL late in the process causing\u00a0unforeseen\u00a0delays.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">Solution: Routing guides should be one of the first things that is communicated from a merchant to their 3PL when they onboard a new retail account. A merchant needs to request the routing guide from the retailer, understand what it entails, and vet the process with their 3PL.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><i><span data-contrast=\"none\">What is a routing guide?\u00a0<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Retailers\u00a0have specific instructions on how products are packaged, labeled, and shipped to retail locations (stores or distribution centers, for example). The routing guides are the critical \u201cinstructions\u201d that the shipper (merchant or 3PL) need to follow.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"none\">How does a 3PL ensure they meet the routing guide requirements?<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Because a routing guide is very precise and has a lot of detailed information, the operations team of both the 3PL and the merchant need to work together to create a summary of the most important requirements. A routing guide summary should be created and approved before the first order drops. Every single detail needs to be correct\u2014it\u2019s best to go through multiple iterations and test orders to ensure everything is mapped out perfectly before launch day.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"none\">Why is it important to factor in lead times for each requirement?\u00a0<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Sometimes there are special aspects of a routing guide that will require multiple departments to get right. Special labeling, for example, which most retailers require, means most\u00a0orders must go through the production department to get labels before going through the remainder of the fulfillment process. This can take several days. Merchants need to be aware of the lead times for each routing guide requirement in order to set up realistic shipping dates with their retail account.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">2 Scheduling Issues and Missed Pick-ups with Retailers<\/span><\/b><span data-contrast=\"none\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">The issue #1: Scheduling pick-ups, especially during peak season, can be a challenge as order volume is high across all transportation providers. Retailers struggle to coordinate pick-up times and they may happen later than expected or require a quick turnaround time.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">The issue #2: As transportation companies get overwhelmed, even if pick-ups are scheduled, sometimes the transportation provider just doesn\u2019t show up and the pick-up has to be rescheduled.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">The solution: Knowing your lead time is key. The merchant has full control over the timing and scheduling. There are so many last-second orders during the holiday season, merchants need to be prepared for pick-up issues by adding it to their peak season planning.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><i><span data-contrast=\"none\">What are pick-ups from retailers?<\/span><\/i><span data-contrast=\"none\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Most retailers require the use of their shipping service. This means the retailer\u2019s shipping service will pick up their own orders, giving them more control over the cost, service,\u00a0and shipping schedule.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Insider info: These retailer pick-ups are sometimes called \u201cwill call\u201d orders because the transportation provider is working for the retailer and the freight is on their account.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"none\">What is the order lead time?<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">When a purchase order (PO) is placed from a retailer, it takes anywhere from a few hours to a few days to fulfill it and get ready it ready to ship. The time between when the order is placed, and the time it ships out is the order lead time. Merchants need to be aware of this to ensure they can get their\u00a0products\u00a0to retailers in a reasonable amount of time.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"none\">How are pickups usually scheduled?<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Your 3PL will often manage the pickups since they are fulfilling the orders and responsible for getting the products ready for the transportation provider. Once your order is ready the 3PL can route it to the retailer. It\u2019s then up to the retailer to assign a carrier and coordinate a pickup\u00a0with the 3PL\u2014which could be that day or a few days later.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">3 Getting Slapped with a Huge Bill from Chargebacks\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"7\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">The issue: Merchants can accrue very steep fines if they aren\u2019t careful to follow the routing guides exactly. For example, if an order has a labeling discrepancy, the retailer may issue a per-unit or per-order fine, called a chargeback that can be costly.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"7\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">The solution: Know your routing guides and follow them systematically. If you do have an issue, try and work with your buyer or retail account to have it waived\u2014everyone makes mistakes occasionally, just don\u2019t make it a habit.\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><i><span data-contrast=\"none\">What is a chargeback?<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Retailers will issue financial penalties when there is an issue with an order or when the routing guide isn\u2019t followed. These penalties are called chargebacks and can range from hundreds of dollars to tens of thousands of dollars.\u00a0Each retailer will issue charge backs differently\u2014some are stricter than others when allowing issues to go or issuing a chargeback. standard of requirements, outlined in their routing guides.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"none\">How much do chargebacks cost?\u00a0<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Flat fee? Percentage of your product sales? Per order? Lump sum? Chargebacks really depend on the retailer and the issue that incurred the chargeback. Some penalties can be for small\u00a0things, and\u00a0be a small cost. Others can be a per-unit penalty, which if you\u2019re shipping thousands of units at a time, can add up to tens of thousands of dollars very quickly.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">As an example, if you are a merchant and you send products with incorrect labels, if each label is counted as an issuable chargeback, your bill might be $50,000 or more.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Smaller boutiques and independent retailers will often wave the fees if it\u2019s an issue that only happens once. Especially if you have a good relationship with that account, they\u2019ll understand that mistakes happen occasionally. Larger, more corporate retailers are known to be stricter, and will issue chargebacks, no matter the cost to you.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Working with a 3PL to Overcome Retail Fulfillment Issues<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">One of the best things you can do to ensure smooth fulfillment is to partner with an experienced fulfillment provider. It&#8217;s important to work with a partner who can meet the needs of your brand, now and as you grow. Not all 3PLs have retail fulfillment experience, and the ones that do might specialize in specific retail verticals, like consumer electronics, health and beauty, or food and beverage.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">When you outsource fulfillment to a 3PL, you are giving up a lot of the control over some of your accounts. But when you start shipping to retailers, your order volume will increase exponentially.\u00a0Plus\u00a0each retailer you add will have their own set of strict requirements. It\u2019s best to outsource to professionals\u00a0whose\u00a0job it is to make sure your products get to the right places in the right way, every time.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">There are many benefits to working with a\u00a0<\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/3pl\/guide-third-party-logistics-3pl-fulfillment-providers\/\"><span data-contrast=\"none\">third party logistics company<\/span><\/a><span data-contrast=\"none\">\u00a0(3PL), especially one that specializes in retail fulfillment. If you are seeking logistics\u00a0support\u00a0we\u2019d love to hear from you. You can read\u00a0<\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/services\/\"><span data-contrast=\"none\">DCL\u2019s list of services<\/span><\/a><span data-contrast=\"none\">\u00a0to learn more, or check out\u00a0<\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/resources\/integrations\/\"><span data-contrast=\"none\">the many companies we work with<\/span><\/a><span data-contrast=\"none\">\u00a0to ensure great logistics support.\u00a0<\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/company\/get-started\/\"><span data-contrast=\"none\">Send us a note<\/span><\/a><span data-contrast=\"none\">\u00a0to connect about how we can help your company grow.<\/span><span data-contrast=\"none\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shipping products to retailers is much more complex than shipping direct-to-consumer. Retailers have a steep set of requirements that merchants need to meet in order to maintain their contract.\u00a0\u00a0 For a small ecommerce brand just starting out with retail accounts, there many new hurdles to jump when it comes to this new sales channel. Here [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[1,20],"tags":[2057],"class_list":["post-13252","post","type-post","status-publish","format-standard","hentry","category-amazon-fulfillment","category-fulfillment","tag-retail-fulfillment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.5 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>3 Biggest Pitfalls of Retail Fulfillment\u00a0 | DCL Logistics<\/title>\n<meta name=\"description\" content=\"Is retail fulfillment different than B2B fulfillment? Retail accounts requrie strict adherence to routing guides. 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