Why are eCommerce Companies Moving Away from Shipping Aggregators & Opting for End to End Fulfillment Solutions?
Introduction
In this blog, we will learn Why are eCommerce Companies Moving Away from Shipping Aggregators & Opting for End to End Fulfillment Solutions?
When your monthly order volume rises, having a middleman to connect you with your carriers might be a significant burden. Growth can be limited by constant communication and commercial transactions with courier partners via a shipping aggregator.
Here are a few reasons why working directly with shipping aggregators is becoming less popular among eCommerce organizations.
Reasons Why It is Becoming Less Popular?
Lagging Tracking Notifications
Once an order is verified, the shipping aggregator becomes active. The aggregator offers a tracking portal so that you may keep track of the order after it is assigned to a specific courier service partner. Since most customers prefer real-time tracking through delivery, the authenticity of this portal is the carrier's and the aggregator's joint responsibility to conversate the tracking updates to consumers.
Aggregators provide a comprehensive picture of all couriers' tracking. However, their tracking system frequently delays. This allows aggregators to focus on business as opposed to technological advancements. Building highly complex and scalable systems is essential to get close to real-time monitoring from integrated courier partners. In addition, these systems need to handle various exceptions without any hassle, which is beyond the scope of shipping aggregators.
A drawback of shipping aggregators is that your customer is left with severe stress and the beginnings of a buyer's regret.
Low Visibility of Carrier Performance
Building brand loyalty and simplifying your service depend significantly on how your courier partners are doing. High RTO% or recurrent delivery failures can affect your revenue.
Aggregators have limited capabilities for tracking the performance of courier partners. Additionally, a cooperative connection with courier partners must address structural issues.
Carriers' performance is affected by many crucial factors that must be checked, examined, and dealt with regularly. These data include RTO% in delivery orders, the number of delivery exceptions, the success or failure of subsequent deliveries, the reasons for failed deliveries, customer feedback, and many others.
Few of these criteria are, however, routinely tracked by aggregators. Moreover, since it is impossible to measure them in the future without a carrier relationship, there is little room for improvement.
Minimal Flexibility
Shipping aggregators give you a quick way to connect with several courier partners, but there is little flexibility for negotiating terms or asking for value-added or specialised services. Every business needs flexibility and adaptability to grow. Flexibility includes both delivery method flexibility and SLA flexibility.
The goal is to adjust the agreement and the process to handle particular issues, such as delayed deliveries and RTOs, when appropriate, without necessarily trying to stretch the deal or the process. Scalability is the ability of a courier partner to manage a range of order volumes.
The distribution of those orders among different sites may vary, even though the aggregate order volumes may be high. It would be more challenging with an aggregator to precisely modify the volume of orders handled by different courier partners to achieve the desired scattered distribution.
Unsatisfactory Customer Experience
In most cases, shipping aggregators lack the technological tools to spot supply chain anomalies. They can also find it challenging to conversate quickly regarding the status of deliveries. This is a challenge because there is a finite window of opportunity for couriers to complete a failed delivery.
Based on the aggregator's communication with courier partners, you can inform consumers of the status of their orders. However, these messages can occasionally be misplaced or, worse, ignored. This mainly happens when a delivery goes wrong.
Customers who have not received their orders will eventually contact you repeatedly for their order status. Unfortunately, you are entirely dependent on the aggregator to contact the courier partner to find out the order's status, so you cannot inspect or provide information about the delivery status.
You cannot update your clients until the aggregator receives information from the carrier and relays it to you. Therefore, it can take days for the information to get to you.
The ultimate consequence is that while you wait for the middleman to close the communication gap he created between you and your carriers, you've probably lost a consumer's trust.
Conclusion
The intermediary needs to be eliminated when an eCommerce business reaches a particular level of growth. By contacting the partners directly, you have a better chance of negotiating prices, improving delivery methods, and lowering your RTO% by aggressively addressing NDRs.
The Benefits of Employing a Fulfillment Partner Like WareIQ
Here we will list down the main benefits that a fulfillment partner can offer;
Reduce Your Expenses
WareIQ includes fulfillment centers, warehouses, staff members who will package your products for shipping, and delivery service to ensure your customers get their stuff. Additionally, business owners would pay less for the fulfillment and shipment orders because we do our company on a broader scale.
Ensure Appropriate Products Are Packed For The Appropriate Customer
Employees are informed precisely what has to be gathered and packed for each order as orders are entered into the system, guaranteeing that consumers receive precisely what they ordered. As there are fewer opportunities for error during order fulfillment, this will help enhance your company's customer service.
Effectively Incorporate Technology
With the help of WareIQ's warehouse management solutions, businesses can see their inventory in real-time and discover the products that are in great demand and need to be restocked more frequently. Making this decision would guarantee that your business never ran out of its best-selling products for your devoted customers.
Greater Reach and Better Accessibility
WareIQ fulfillment centers have several warehouse locations, your products are more easily accessible to your clients, and you may virtually grow your market from the convenience of your home or office.
Grow Your Business With WareIQ
You'll have more time to develop and grow your company now that manual labour is no longer an issue. You can explore other business opportunities, increase your inventory, and close deals with new clients.
