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Logistics Terms That You Should Know Before Starting E-Commerce Business





Managing an online store is a great challenge, and if you have experience in traditional commerce you will discover that -although the experience will be useful-, many concepts will be completely new to you. In this sense, knowing what each technical expression refers to is essential to be able to deal with all the links in the shipping process without communication errors. That is why, below, we present the main terms to handle during the fulfillment process.


It is the process that companies have when receiving products, storing them, and registering them in the system to control their inventory. Of course, in stock management, you must calculate how often it is necessary to renew your inventory and the cost that this will have.

Pick and Pack

It refers to the process of selecting several products in different areas of the warehouse (picking) to be organized according to their destination and, later, packed according to their physical characteristics (packing) so that they reach the consumer in perfect condition. The key to good picking is to carry out this task in the fewest possible steps, which is achieved by having good inventory control.

Inventory control software

Having a tool in charge of managing the flow and storage of products allows better control of inventory, avoiding surpluses, or out-of-stock merchandise. In addition, it helps to determine slow-moving products and their seasonality to better plan your purchases.


Basically, this term refers to a set of protocols – or rules – that allows two systems to interact with each other. In this way, an API allows you to connect your online store with the inventory control software of your warehouse so that, every time a sale is made, it is automatically reflected in your number in stock. In this sense,  a clear example is the ShipBob platform,  which -thanks to its API- allows the integration of your e-Commerce with its platform, in order to have full control over shipments, stock, and everything related to the performance of your virtual store.


Stock keeping unit – or warehouse maintenance unit – is the reference number that is assigned to each product to identify and track it.

Storage fees

It is the price you must pay for a fulfillment company to store your product. The price to pay is calculated by the cubic area that your items occupy and, although they always try to optimize the space as much as possible, they should separate products depending on their characteristics. Finally, you should consider that the rate will depend on the size of your products and that you will need a different storage place for each SKU.

B2B and B2C

These acronyms refer to business models. B2B refers to relationships between companies (business to business), while B2C refers to transactions carried out from business to customers (business to customer).


It is the combination of methods, infrastructure, and means used to streamline the processes in the supply chain. It covers the transport, storage, and shipment of products.

Reverse logistics

It is in charge of recovering containers and packaging for a second use, as well as recovering hazardous or polluting waste. It also refers to customer returns, outdated products, or seasonal merchandise.


It is the tracking of a shipment, being able to see its status at all times and in real-time, from the exit of the warehouse to its final destination.

Within e-commerce, the requirements and concerns of customers are different from those of traditional commerce. Offering an efficient shipping service is a fundamental factor that will determine the success of your online store, so it is very important to have the ability to speak the same language in terms of terminology with your fulfillment team, in order to satisfy the expectations of your customers.

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5 Common eCommerce Problems and How to Fix them





The responsibility of online stores does not end with the sale: we must assure customers that the product reaches their hands-on time and in good condition. The shipping process is not easy, as there will always be the possibility of having to deal with problems such as late deliveries, products damaged by mishandling, or unexpected charges, to name a few.

Fortunately, most of the problems that can occur in fulfillment are easily solvable for those who have experience. But, if that is not your case, in the following paragraphs we will show you some of the most common problems in the area, and their respective solutions:

1. Unexpected expenses

Even if you focus on local shipments, it can always be the case that you receive an order from another country. You may not feel safe when making international shipments, since you will have to deal with other companies and you are unaware of the extra expenses that may arise due to customs and taxes.

To find out the cost of a foreign shipment, you can use online calculators offered by courier services. It is also important to consult the rules for international shipments of these companies. Each country has different charges for duties and taxes, but with a tax calculator, you can get an idea of ​​how much your client will pay, for which you must be well informed about the rules of commercial law.

2. High shipping costs

Online store customers always hope that they won’t have to pay a lot for the courier service, receive a discount, or that shipping is free. If the cost is very high, rest assured that they will not buy. What to do in these situations?

To be able to offer your customers attractive offers without representing a loss to you, you must evaluate the performance of your service of sending and receiving products. In that sense, having a logistics partner capable of responding in all aspects of packing and shipping could be more profitable than you thought.

3. Products damaged or lost

Even in the best companies, it can be the case that the merchandise suffers damage, loss, or theft en route. In that case, related insurance could be the answer when the damage is done. Thus, you can respond to the customer without absorbing costs. However, when these types of problems occur, it is especially important to have the services of an experienced logistics partner, capable of developing the entire chain of processes according to the highest quality standards.

4. Out of stock products

Due to poor inventory control and / or an outdated online store, orders may be placed for merchandise that we do not have. Faced with this type of problem that can occur in fulfillment, having a platform that allows you to control the stock in real-time is essential. In that sense, the Shipit platform can work together with your e-Commerce thanks to its API. Thus, you can have access at all times to an updated record of your products.

5. Returns

Returns occur mainly because the product does not meet customer expectations, representing a waste of resources and time for any business. To minimize returns, you should create very detailed descriptions of each product with photos at all angles, along with specifying your return policies very well.

In any virtual store, it is important to be aware of all the problems that can occur in fulfillment, in order to know how to act in each case. After all, these are situations that could happen, and the ability to react is essential to give satisfactory responses to customers.

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Product Fulfillment Solution For Your eCommerce Business



Product Fulfillment

Product Fulfillment

Fulfillment basically refers to the process of storing one or more products in a certain place and then managing the delivery to the end customer after purchase. It is a fundamental part of the logistics of a company, both for the latter to optimize time and costs and for the buyer to receive the product on the correct date and in perfect condition.

For the same reason, to integrate an eCommerce fulfillment solution into a business, we must first answer some questions: how can your company’s eCommerce finances be optimized? In what way is this item hurting your time, making you stop aside other edges that require your attention?

Let’s review below how to go about integrating a fulfillment solution for your online store, and thus achieve the best results for your time and your profits.


The first thing is to organize your inventory and check stock, and then proceed to examine which products are most purchased in your online store. This is essential to order your future orders.

Once the inventory is identified, you must proceed to store the products in predetermined locations. It is important to consider some important points that could intervene in costs, in order to anticipate contingencies:

  • What size are the products in your online store? When they are small it is easier to implement a fulfillment solution for eCommerce, although for large and heavy objects you can get some specialized storage and dispatch alternatives.
  • What areas do you want to dispatch? To a city, a whole region, all of Chile? Some logistics services have strategic storage sites to ship to cities and communes throughout the country.

In that sense, integrating a fulfillment solution for your eCommerce begins by outsourcing the logistics. Therefore, the first thing you should do is deliver to the company the products you choose to store, for example, the best sellers, although the idea is to cover a large amount of inventory to avoid transport.

The company will allow you to manage shipments, quote online, and track products, in addition to offering you detailed information on warehouse stock. Storage gives you greater flexibility. As for prices, these will be fixed by the volume of items to save, and variable in relation to the number of sales and movements of your inventory.

Packaging and dispatch

It is another fundamental process in fulfillment. The external company will give you the option to pack your products according to your preferences so that they arrive in perfect condition.

To optimize costs, the prices of the different dispatch alternatives are compared. For example, in Chile logistics will connect with the most convenient shipping services, according to the best times and coverage – such as Correos de Chile, Chilexpress, and Starken-, managing any information to and from the courier company.

In addition, you should not forget that a correctly integrated fulfillment solution for eCommerce will be able to work with the different electronic commerce platforms, allowing the external company to connect immediately with the orders. So you can forget about the storage and delivery processes of the products.

Remember that outsourcing the logistics of your business can help increase its reach to a more scalable level, in addition to avoiding having to invest in WMS costs and new processes: you simply let your logistics partner do it for you. Thus, you can give yourself the time you need to dedicate yourself completely to marketing your company, to customers, to study their needs, and to improve the shopping experience.

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Anti-Prediction List For E-Commerce Business 2020





The eCommerce in United States has a tremendous year ahead, a new decade is upon us and it is difficult to resist the 2020 predictions and trends lists. Who would not like to have a crystal ball to predict the future and ensure the success of your business?

(This article was originally published by Allan Guiloff on  Linkedin)

Since we haven’t built our guru’s muscle, we at  Shipit prefer to review those prophecies of the decade that were not fulfilled and see what we can learn from them to drive digital sales this year.

Robots didn’t take your job

At this point in the millennium, two things are not yet happening:

  • The flying skateboard from Back to the Future ( soon, soon )
  • An army of robots rising unemployment rates.

Just relax. We live surrounded by robots that make it easier for us to hit and if you take advantage of them, they can do wonders for your eCommerce. How to use them best?

  • Say hello to chatbots
  • Keep your eye on voice searches
  • Learn to use Analytics platforms
  • Automate your logistics and save time and money.

The internet did not make us less human

Many are still nervous that the internet and the virtual world absorb our daily life and isolate us from the real world. The truth is that we spend a lot of time in front of a screen but that does not mean that we leave ourselves aside as a person. As we were taught in one of our talks: not everything is digital.

On the contrary, personalization and socialization are a full trend in the eCommerce ecosystem. Some things you can boost in yours:

  • Customize the content. But do it for real. I like to give an example of LoveLust, 100% original content.
  • Get ready for Instagram Shopping
  • Listen to the feelings of your consumers
  • Socialize the shopping experience.

Online stores didn’t bankrupt brick-and-mortar stores

Today we have a lot of options to buy and omnichannel is more relevant than ever. Some prefer to research on the internet before buying in physical stores. And some prefer to interact with the physical product to finally buy online. The fundamental thing is to maintain a very good shopping experience regardless of the channel you decide to open. For 2020, it would be good for you to consider:

  • Many online stores are opening showrooms or physical stores.
  • Selling on a Marketplace is still relevant, but you have to choose it well.

Now, what now?

There is no glass sphere, but we do have compasses. As Nacho Calle said, it is important to know our clients and our business before copying models or trends. It is also useful to learn from the experience of other eCommerce or startups, so: do you dare to share with us what new things you are going to experience in 2020?

2020, we are going for you.

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