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FAQ

  • Why is branded packaging important?
    Branded packaging is important for several reasons. Custom packaging creates interest in your products. Unique, well-designed packaging sets your brand apart from your competitors. Your packaging conveys a lot about your brand’s image to customers. Your choice of colors and your logo should represent your brand and be consistent across all of your packaging – from small bubble mailers to Continue Reading
  • What is included in the cost of inventory?
    Inventory cost includes the expenditure required to produce or purchase products for resale and the sales cost, order cost and inventory hold cost. The cost of inventory includes the administrative fees, such as purchasing orders and other paperwork needed to purchase raw materials or finished products from various manufacturers. This cost, evaluated by management is part of determining how much Continue Reading
  • What is Demand Forecasting?
    Demand forecasting is a technique used to optimize inventory management by predicting what your sales will likely be for upcoming cycles during the year. Phase V’s data-driven inventory management system allows you to generate reports based on the past year’s sales. Demand forecasting helps inventory management plan for increased products in certain seasons (i.e., holidays) and plan for less demand Continue Reading
  • What are fulfillment costs?
    Fulfillment costs consist of the amount of labor, supplies, and warehouse management it takes to process orders and ship them to customers. Costs include retrieving your items from your inventory, assembling products (if necessary), and packaging them with custom materials. Packaging orders for shipping includes using protective boxes and envelopes including bubble wrap, Styrofoam peanuts, and other insulating materials to Continue Reading
  • How much are fulfillment costs?
    Fulfillment costs vary depending on whether you perform your own fulfillment in-house or outsource your fulfillment to a 3PL provider. To determine your in-house fulfillment costs, you’ll need to determine your cost per order (CPO) to do your own order fulfillment. A CPO includes the sum total of direct and indirect labor costs, packing and shipping supplies, shipping costs, and Continue Reading
  • What is a fulfillment partner?
    A fulfillment partner is a third party logistics (3PL) provider that takes on the arduous task of picking, packing, and shipping your orders to your customers. Businesses just starting out can usually process their own orders but when increasing sales, combined with a lack of space, and/or skilled hands to perform fulfillment processes starts to take precedence over core business Continue Reading
  • What is outsourced fulfillment?
    The growing preference towards online shopping has allowed many e-commerce merchants to grow rapidly. While expansion is the goal of these online companies, as e-commerce companies continue to see increased sales, they are faced with the decision to keep fulfilling orders in-house or to outsource their fulfillment, by partnering with a third-party logistics (3PL) fulfillment company. What does a 3PL Continue Reading
  • What is FBM?
    Amazon Fulfillment works in two different ways: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). As the names imply, FBA sellers send their inventory to Amazon distribution centers, where it is stored for a fee. When your customers place orders, your products are picked, packed, and shipped by Amazon to your customers for a fee. Conversely, FBM sellers perform Continue Reading
  • What is FBA?
    FBA, Fulfillment by Amazon, is one of Amazon’s fulfillment platforms for online sellers. Sellers that do not have fulfillment logistics in place can pay Amazon a fee to store their inventory in one of Amazon’s distribution centers. Amazon will then pick, pack, and ship their orders for a fee. This allows FBA sellers to focus on marketing their Amazon stores Continue Reading
  • What is e-commerce order fulfillment?
    E-commerce order fulfillment refers to the process of warehousing goods, preparing orders for shipping, and shipping orders sold by e-commerce businesses. Traditionally, fulfillment by big-box retail outlets was performed in-house. Over the last decade, online shopping started to edge out traditional brick-and-mortar retailers and more companies started offering their products exclusively on online platforms. Many online vendors found that as Continue Reading
  • What does e-fulfillment mean?
    E-fulfillment refers to the process of preparing products purchased from e-commerce vendors for delivery to customers. The e-fulfillment process begins with warehousing inventory in a secure facility, with optimal humidity and temperature settings for your products. E-fulfillment facilities utilize state of the art technology crucial to successful e-fulfillment and should combine all the elements of your fulfillment process into a Continue Reading
  • Why do companies use 3PL?
    Companies use 3PL services to provide fast, efficient, and affordable fulfillment operations for their supply chain solutions. Third-party logistics companies can save businesses money and time in every aspect of their fulfillment process with an emphasis on fast, on-time, intact order deliveries. Before consumers preferred online shopping to visiting their local brick and mortar retail outlets, fast, on-time deliveries were Continue Reading
  • What is the difference between 3PL and 4PL?
    The difference between 3PL and 4PL for e-commerce and brick and mortar retailers is that when businesses partner with a 3PL service provider, they turn over control of their order fulfillment operations to a third-party logistics company, in order to scale their businesses without the expense of maintaining a warehouse and leveraging the expertise 3PL service providers offer. 3PL service Continue Reading
  • What does a 3PL company do?
    3PL companies, or third-party logistics companies, offer an array of services to assist growing businesses by providing outsourced warehousing and fulfillment operation logistics to those businesses. Traditionally, businesses partnered with 3PL service providers when they're so large that they could afford to hire an outside company to pick, pack and ship orders that the business lacked the time and personnel Continue Reading
  • What is a 3PL service provider?
    3PL service providers, or third-party logistics companies, are external businesses that offer a broad range of services to help growing businesses cope with sudden growth and demands for additional space, as well as extra hands to handle increased fulfillment operations. 3PL service providers offer these fulfillment services to growing companies, as an alternative to businesses in the crosshairs of expansion, Continue Reading
  • Why is 3PL important?
    3PL providers are important in today’s business climate as more and more consumers prefer to shop online and growing businesses strive to meet the demands of fulfilling those orders on time. As e-commerce vendors grow beyond their capabilities to manage the additional influx of sales and increased order fulfillment demands, they are confronted with the option to set up their Continue Reading
  • How can I improve my order fulfillment?
    As online shopping continues to evolve, a growing number of businesses are attempting to manage their increasing supply chain and fulfillment operation demands while also staying on top of their product development and manufacturing initiatives. Unless part of your business is set up to include warehousing and fulfillment operations, when your business grows into its next phase of expansion, you’re Continue Reading
  • How does online order fulfillment work?
    Now that an increasing number of consumers prefer the convenience of online shopping and are demanding faster and faster delivery times for their online orders, efficient, streamlined online order fulfillment is essential to keep orders moving through the supply chain. This race to get orders delivered faster was driven by two-day delivery, next day delivery, and same-day delivery services offered Continue Reading
  • What is online order fulfillment?
    Online order fulfillment is the process that occurs after customers place orders online through e-commerce sites. Once orders are placed, items are picked from the warehouse inventory and packaged then shipped to the customer via various carriers. Online shopping has increased exponentially in the last decade, creating a need for many online retailers, as well as traditional brick and mortar Continue Reading