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The Ultimate Guide to Order Consolidation
Do you have heard order consolidation?Have you received multiple orders from a SINGLE BUYER at a time? 10 out of 10 customers want all the parcels to be shipped at once. Now order consolidation will provide you with a great solution
Just imagine!! Who the HELL wants to receive 5 items 5 times? It is SERIOUSLY a big headache for the buyer and the SELLER.
Yep. There is ORDER CONSOLIDATION. ( TBH, it is a game-changer). One consolidated delivery contains 5, 10, 15, no limit for the items! I am sure you want to LEARN about it.
Is that so? I have written this guide to inform you about package consolidation.
1. Basics of Package Consolidation
1) What are consolidations?
Consolidation is a process of combining multiple items in a single delivery. Let me explain it with an example.
I purchased three different items from Aliexpress from three different sellers. S08 Bluetooth Earbuds, Lenovo Smartphone, and Wireless Charger. The sellers are often different. Each one will send you the product separately. To receive them, buyers must get THREE TRACKING codes at the DELIVERY address three times.
Don’t you think it is nothing but time-wasting? In compact order, Aliexpress will ship all three items in a single package. It saves the tension of the buyers. Keeps the buyer easy. And decreases the consolidated freight shipping cost.
It has been a VERY SUCCESSFUL strategy. It improves the customer venture. You’ll later learn about customer delight in this article.
2) How does it work?
Compact order can be easy peasy. But it is TRUE as long as you have all the brands onboard. For example, if your buyer purchases Sneakers from Nike, and Smartwatch from your store. Have Nike on the contract to ensure the single packaging and shipment.
There are many things to know.
- Keep an agreement with the other brands.
- Settle the supply chain mechanism.
- Set up the single-order shipments. And go on boosting the business performance.
Since it is an integral process, more businesses are adopting this strategy, and enjoying the endless cost-efficient benefits of the combined delivery.
3) Why should I choose the consolidation process?
The primary purpose of freight consolidation is to secure a high customer delight. And that is when the buyers will turn their heads to your business. Make up their minds. And help you raise your business status and sales.
Here are some critical benefits of compact packages.
- It is a cost-efficient process. You don’t have to invest many bucks in the process.
- Client trust increases in your business. And it can build long-term relationships.
- The chances of sales increase with the combined delivery.
Interested in knowing something more? Get up! I am going to discuss the detailed benefits of consolidated orders.
2. 6 Benefits of Package Consolidate service
Let me tell you my story! As a buyer, I ordered two products from Aliexpress. The orders were shipped at different times with multiple tracking IDs. Believe me, it was torture to wait for every order to arrive and waste time tracking it.
That is the story of every single buyer out there. You can only grab customers by making their purchases smooth and delivering the orders with NO BIG WAIT!
Order consolidation fights it with the following benefits!
1) Reduced Shipping costs.
Several factors affect the shipping costs.
- The weight of the parcel.
- The dimensions of the parcels.
- Shipping method.
- Per package handling fee.
How can you reduce the shipping cost by combining packages? It is simple!
By putting multiple items in a single packaging, you are cutting down the per-packaging handling fee. Moreover, if you ship at a flat rate, there is no worry about the weight.
All you have to worry about is the dimension. With package consolidation, you can ship three or more items in a single box at the price of one package shipping.
Most sellers and buyers cut down the costs greatly. It can raise your profit margins. It gives you some budget to invest in ads. And attract more consumers to your brand.
Want to miss this opportunity? It is a BIG MISTAKE if you do!
2) Ease of shipping tracking.
Tracking multiple items is a BIG headache. A buyer has to manage all three tracking codes. Wait for the orders to arrive separately on time. And invest time in tracking the REAL-TIME tracking.
It is nothing but a waste of time. And increases the hassle for the customers.
How is the idea of managing and receiving all the items at once? That is BEST. Consolidated shipping offers that opportunity.
You can combine all the orders at once. Set up a specific product code for their customs clearance. And send them to your consumers on time. It will reduce the hassle of packaging multiple items or shipping numerous packages.
Nowadays, environmentalists are focusing on producing eco-friendly packaging. But you can’t abandon plastic-like materials at all. There are still some roles in packaging. However, reducing its use can be a better strategy to handle the situation.
It is what shipment consolidation does.
You pack multiple items in a single pack. It does:
- Reduce the use of multiple separate packages.
- Decreases pollution because most customers discard the packing.
- Reduces your hassle, though.
It is an excellent step toward eco-friendly packaging solutions. You’ll be surprised to get some statistics about how consumers love eco-friendly packaging.
52% of the UK and US consumers choose brands with eco-friendly packaging. They want multiple items in a single packaging to reduce pollution.
That means you can impress your consumers. Give them a reason to buy your inventory. And make more sales to increase your FIVE FIGURE store to SIX FIGURE.
4) Relatively Safe shipping.
Damaged products have been a significant hindrance for the sellers to make sales. In such situations:
- Buyers apply for a refund.
- Make up their mind never to buy from the seller again.
- Give bad feedback, affecting your seller profile.
It is a NIGHTMARE for your business!
Want to avoid it?
Focus on the package’s safety. With combined packages, you can put multiple products into a single box. It reduces the handling risks of each item. Consumes less space. And keeps them safer in transit.
When your parcels reach the final destination, they are 1000% safe and sound. Buyer will surely think about your efforts. And make up your mind to be your regular customer.
5) Improved Quality Control.
Has your factory assured you 100% quality products? Still, some technical deficiencies produce 1-2% of the defective items. And don’t send such things if you want to survive in the online business.
In consolidation shipping, you often double-check all your items. Ensure they are all correct. And it gives you a chance to look at their quality.
You can save your business by potentially detecting all the defects. Replace the items. And send the qualitative ones to consumers.
Better quality control keeps your CUSTOMERS’ trust high. And makes a name for your business in the market, giving a BRANDED recognition. You never look back!
6) Excellent Customer Experience.
You are doing every single try to impress customers. For example:
- You sell them highly quality products.
- Reduce the hassle of tracking all the orders at once.
- Provide them with safe shipping services.
- Reduce their shipping cost due to a single packaging.
- Help them get fast delivery of all the items.
All such points are 100% positive for your business. That makes your business go on improving its customer experience. Keep them coming to your products. And buy them for extended periods.
It not only helps the buyers. But also, you are improving the presence of your business, making every effort to save costs, increase profits, and raise sales by giving excellent experience to buyers.
What else do you even expect?
3. 4 Disadvantages of Package Consolidation Service
Every Time combining packages could be better. If there are pros. There are some cons. You have to accept both sides.
Looking at disadvantages at one central point. It can help you decide whether to choose combined delivery or not.
Let’s check the different cons of combined delivery.
1) Logistics scheduling is a big challenge.
One item is from Nike. And the other is from Chanel. How can you even schedule it? Much time will be required for the item to be received from Nike and Chanel. And combine it with yours. However, even if you send the products at the same time, there are some problems in managing them during transit.
Sometimes, buyers don’t want the parcels to come at once. They want different packages. It can create multiple problems. Can you face it?
Shipping multiple items at once can raise your confusion. You might have various problems with shipping.
2) Delivery delays.
Don’t think you can ship faster. It is all dependent on the shipping companies. And the season is going on.
For example, suppose there is a dragon boat festival in China. You must wait 3-4 days for the package to be processed.
There is one more thing here. Sometimes, buyers want to package a critical box with 2-3 others. A delay in the shipping schedule would affect the same for the essential package the buyer wished for faster.
It is another big con for the buyer to get important parcels on time. You can lose your consumers as well.
3) Shipping inaccuracies happen.
I have a question. What is easy to ship for you? 5 items separately or 5 things at once.
Let me tell you a REAL-LIFE example.
Last week, my friend ordered one wallet. Smart Watch. And earbuds. Surprisingly, the package had two things. And needed the smartwatch. That suddenly urged my Friend to cancel the order and get a refund.
Shipping multiple items is a more complex process. You need to double-check. If you miss one item, it costs you a refund of all the other things.
There is one solution. You recheck all your orders. Ensure the package has all the items. And then send.
If thousands of orders exist, it can still be a bug problem because you can’t recheck every order.
You should be ready about this aspect too.
4) Decrease in customer interest.
Not all buyers want 5 or 10 items to arrive at the same time.
Some orders are a high priority for the buyers. And they want it in a day or two. Or even faster than that. For some orders, they might wait up to a week or more.
Combining orders means the shipping occurs at once. And at the scheduled time. If the shipping is slower, the buyer might get the high-priority items late.
That has caused a marked reduction in the interests of the buyers. The best strategy is to contact the buyers. Ask about their preferred timing. And send high priority earlier than other items combined.
4. How to get started with the Package Consolidation Service?
Combining packages, come up with various strategies you can apply. First of all, you must have a flow of action.
For instance, how will you ship the products? Where do you store the inventory?
Want to know the details? Let’s talk about it.
1) Map out the Fulfillment Process.
The fulfillment process of combined packages is not DIFFERENT. You have to grab all your packages. Set up the fulfillment process. And finally, ship the products.
But before that, where do you keep the products? Some sellers have private spaces to store their items. Conversely, some sellers have multiple hubs or warehouses to manage all their products.
Now, it is the time to combine them all. And you can do it by getting all your orders in one place.
You must have a flowsheet. How will you manage it? And how will you do it?
2) Choose the appropriate consolidation service.
It is not all about the order shipping. Instead, the order fulfillment is a combined effort of:
- Shipping service
- Consolidation provider.
To ensure the consolidation, you must choose the right warehouses. Only some of the warehouses are right. Only some provide services for picking, packing, and fulfilling orders. These are called fulfillment centers.
You must have the THIRD-PARTY warehouses that offer all services at once. It’ll save you time and money.
3) Make a strategy.
Strategy is the key! Do you want to ship faster? Pack faster. Pick faster. And send faster.
That is not simple!!!
As I highlighted earlier, combining order depends:
- You must have the relevant shipment services to save the fuel surcharges.
- Be in contact with the consolidation warehouses to combine multiple orders.
There is one thing. You must sell the products in the kit. For example, you sell a diffuser. Keep the relevant essential scents on top to maximize sales.
Connecting multiple channels would save you time. And you can make up more sales with the right items.
4) Digitize Order Consolidation.
Technology has dominated everything. In the warehouses, you can find the robots. Cutting-edge technology has helped integrate the different sales channels. And manage all the orders in one dashboard.
Digitalization can be a TRUMP CARD.
Do you know the benefits of digitalization? Here are these.
- You can locate the SKUs of all the products. Inform your packers. And simplify the process of finding and shipping the orders.
- It is no longer a problem to differentiate the consolidation products from others. You can save hours in exploring the orders.
- It reduces shipping inaccuracies greatly.
- Generating shipping labels. Creating return labels. Printing airway bills has become quite easy.
- You can even manage the shipping provider. Assign each of your combined orders to a specified third-party shipping service.
Implementing the technology has been very beneficial! You should consider it as a part of your strategy.
5) Implement The Set Process.
Converting the dream into reality? It is a hectic job!
If you plan the order consolidation, it is not a problem. But it is a problem. You can implement the whole process as:
- Find out the warehouses that can combine the products. Sort out the agreement to make sure everything is clear in the future.
- Know the pickers who could provide the product picking from your warehouses. Get them to consolidate storage space. And combine them.
- Locate all the top shipping services in your area. You can check their shipping speed. Calculate costs. And then finalize the contract for a specific period.
One of the most important things is the FAILURE! It happens when you need a proper strategy. Get failed in shipping orders on time.
You should first test the shipping services. Come up with your package consolidation. If everything goes according to expectations, you can launch the business. And start selling consolidated packages.
5. 5 Tips for setting the best consolidation
Facing the challenges of order consolidation? Suppose you are doing it for the first time. Here are some tips. These speed up the business growth. And help you skyrocket sales.
Here are these.
1) Customize the Packaging.
One of the best ways to impress customers is to provide customized packaging. Personalized packages always make a place in the hearts of customers. And engage them better.
I am sure you want that.
Moreover, bigger brands like Louis Vuitton or Gucci have customized packaging. They add their business logos. Send quality packages.
But the question is, how will you do that? Will it increase your budget?
Nope. You are saving money with the one package for multiple orders. Invest the saved money in packaging. Do the MARKETING of your brand. It can boost your results.
2) Make packaging safer with different techniques.
Safe packaging is a good idea. Damaged products are always a negative point. It can negatively impact your business. Increase the rate of customer return. And accumulate the bulk of negative reviews. Raise the concerns for your business.
You can add additional protection layers to your packages. Improve their security. And fulfill all your orders on time safely.
You get a positive rating from your customers. Make them your permanent buyers. And reduce the order returns. If you sell on Amazon, it can boost your profile. In other cases, Amazon even suspends your profile.
Isn’t it something you want?
3) Ensure eco-friendly packaging.
Do you know what eco-friendly packaging is? It is environmentally friendly packaging. That means it does not produce the waste. That affects the environment badly.
Therefore, such packaging also has a major impact on your health. It can negatively impact your health. For example, plastic increases the chance of developing cancer.
Customers love sustainable packaging. They consider it more safe for their health. And who wants to affect their health?
So you should consider eco-friendly packaging. You can have a separate contract with a packaging company. Advise them to give you customized and eco-friendly packaging. Moreover, maintain the safety and quality of the packages, too.
4) Choose the best consolidation service.
There are tons of companies. Whom to choose? It is a big question. I have listed some tips for choosing the best consolidation service.
- Search on Google about the nearby compact order services.
- Engage other brands to help buyers get a better experience with branded inventory.
- Use the chamber of eCommerce to find out all the top shipping services.
Based on your budget and quality criteria, you can get the EXACT MATCH. And then move to the compact package.We have introduced some merchants that can provide this service in previous articles. If you are interested, you can check it.
5) Design a proper strategy for business growth.
Have a proper plan to execute the order combination?
If not, that is a disaster. There is less than a 50% chance of your success. You must test the shipping services to avoid the risks of delivery delays. Check the expertise of packing services to ensure clarity in shipping the right items.
A single mistake in picking and packing the wrong item can cost you. Therefore, testing the strategy is a better idea.
1) What is consolidated freight shipping?
Consolidated freight shipping refers to shipping multiple items in a single box. Warehouse workers combine the orders. A shipping service ensures the delivery of combined orders. The delivery timing and cost depend on factors such as weight.
2) What is package consolidation in the warehouse?
The consolidation process occurs in the warehouse. These are often specialized warehouses or central facilities. Packages from different warehouses come in a main warehouse. Workers know how to combine. And keep records of all the combined orders for better shipping. And tracking while products are in transit.
3) Can I save money with an order consolidation in the warehouses?
Being a seller, I have cut down overhead costs significantly. For example, you don’t have to pay the extra handling fee per package. Flat-rate packaging cuts the cost. You don’t have to invest in creating multiple boxes. It often requires a huge amount of money. You can even get more sales by improving the customer experience. That is the reason most sellers prefer compact orders.
4) How can you track a consolidated order?
There is no rocket science in tracking the compact orders. They go through the same process as the other orders. The difference is that you get a single tracking ID. Use different apps like PARCEL APP or ORDER TRACKER. They will tell you the order location. Estimated shipping time. And the shipping service. You need to enter the tracking code to get all the information.
5) Consolidated vs. Direct Order Shipping: Which one is better?
There is no exact answer. Combined packages are far better. It is because they save COST. Ensure reliable quality. And help in branding. But it depends on your buyers what they want. Combined delivery or separate item delivery. You should ask buyers first.
Do you want to improve the CUSTOMER experience? Consolidation shipping can do it FAST. You need to combine the orders.
There are many tips like the BRANDED packaging or efficient shipping. All these factors can speed up the process of good experience. And improve your brand presence. Just go ahead!