Wellness Industry 2022: Pandemic boosts self-care product sales

After 2 years of the pandemic, physical and mental health have gained more traction as we face isolation and sickness. Overall, health has broadened and matters to more people globally as self-care has become a major priority. With more people experiencing mental health issues it’s no longer viewed as a somewhat fringe experience. Social distancing has facilitated the self-care psychosis even further.

More people in 2022 are reflecting and planning for a healthier, more vibrant year. The wellness industry is primed for increased profitability in the new year, from improving mental health to gut health and monitoring our stress levels. Whether nutrition or mindfulness or fitness, more eCommerce companies are preparing to grow their sales within this popular space.

 

Table of contents

1) Wellness industry outlook 2022

2) Wellness trends

3) Wellness product trends

4) Wellness industry customer targeting

5) Wellness industry conclusion 2022

 

 

Wellness industry outlook 2022

Also known as “the wellness economy” the wellness industry definition refers to any products around physical and mental health. This includes products for fitness, nutrition, sleep & general well-being. If it improves our bodies or our minds in some way, it’s the wellness industry.

The steady growth of the wellness economy has now increased its global market value to approximately 4.4 trillion – with an annual growth rate of 5 to 10 percent in recent years. The U.S. has the biggest health and wellness market, valued at 52.5 billion, while China comes in second at 19.9 billion, and Australia 3rd (9.5 billion). The UK is still at a whopping 9 billion and Germany at 6.4 billion.

A new study has shown the pandemic has enticed more Europeans to adopt new everyday healthy habits, with 65% of people more likely to consider their health in day-to-day decision making. This includes making decisions within various different wellness sectors. Over the last year, some sectors grew while others diminished.

Mental health products such as “sense spaces” and sleep grew 12.4% while meditation and mindfulness grew an astounding 25%. Healthy eating and nutrition for weight loss maintained positive growth at 3.6% while workplace wellness investments shrank 7%.

 

Wellness trends

In 2021 the Global Wellness Institute (GWI) released the much-anticipated wellness report. It’s known as “The Global Wellness Economy: Looking Beyond Covid.” This report reveals a snapshot of consumer behaviour and important trends that lead to greater public health.

To know the top wellness trends, we need to know the most popular wellness divisions. The six most popular include:

1) Health – Not only supplements and medicine but also includes medical devices and health trackers.

2) Fitness – At home exercise equipment and VR inspired technology.

3) Nutrition – Apps, diet programs, and subscription food services.

4) Appearance – Apparel and beauty products like skincare and collagen supplements.

5) Sleep – Medications, app-supported sleep trackers, and other sleep-enhancing products.

6) Mindfulness – Apps, meditation & yoga products.

Below is a spending report of the top countries for the wellness industry within the 6 primary categories shown above. As you can see health remains the most crucial aspect while appearance and fitness follow next.

 

It’s important to note values are always attached to spending habits. Various countries prioritize certain aspects of the wellness industry over others. For example, Germany emphasizes fitness more than the UK. The UK emphasizes nutrition more whereas the United States emphasizes mindfulness. It’s important to monitor your own market for the best customer targeting sales methods.

 

Wellness product trends

These trends will help shape the 2022 health and wellness market. They include wellness wearables, fitness VR, gut health, immunity and active lifestyle products.

Wellness wearables

Tracking our fitness and health levels are popular with wearable devices and will continue to grow its market share. Popular items like Fitbit and Apple Smartwatch allow you to monitor your heart rate, keep track of physical activity, and monitor your sleep patterns. New watches are even able to track your stress levels.

Smartwatches can now monitor your mental health by reading cortisol levels. Sensors like this are relatively new and will surely entice customers who appreciate self-care and measuring health levels. This trend is likely to rise in popularity and be adapted with numerous smartwatch carriers.

 

Fitness games/VR

With more and more consumers embracing physical fitness from home, they are seeking more fun ways to get healthy. Gaming techniques for people naturally increase someone’s desire to push themselves into fitness. Virtual reality fitness or VR fitness is using cutting edge immersive technology to create exercise environments from Boxing to Yoga and jogging. Popular VR carriers have been seeing large upticks in sales.

 

Gut health

What we eat matters and that means improving our gut health is now an everyday activity for many. In fact, there has been a recent 83% surge in Google searches for “gut health.” The research has shown that more people are eating less meat (34% of people in fact), inspiring a new term known as “reducetarian.“ This finding proposes that products manufactured with plant-based nutrition will see significant increases in 2022.

 

Immunity improvement

A survey of 16,000 adults found that they are focused on their immune system. They broadened their definition of wellness to include intellectual wellness, sexual wellness, facial exercises, animals and music. 65% confirmed they are doing more to actively improve their immune system such as through vitamins, botanicals, and making better food choices.

Having a better level of mental health will also boost your immune system, as confirmed by numerous health experts, including Dr Hannah Reidy of Mind HK. Vitamins and health supplements will continue to sell well along with any other product channels that associate with improving the brain-body immunity connection.

 

Active lifestyle

With a more health-conscious global market, the wellness economy will continue to grow and improve upon currently active lifestyle trends. From fashion to wireless headphones to apparel, it seems more and more consumers are joining the active lifestyle revolution than ever before in 2022.

 

“Our research shows the extent to which the pandemic has impacted attitudes towards personal wellbeing and self-care, and it’s encouraging to see the increased importance that many people are now placing on looking after their own and others’ health.”

-Filippo Lanzi, Regional Head, EMEA GSK Consumer Healthcare

 

Wellness industry customer targeting

Executives predict that consumers will seek more control and personalisation in wellness products and services in 2022. They value products that make their daily lives better with real-time data. From fitness trackers to healthier workplace-inspired products more customers want more overall wellness lifestyle options. They also like social channels that help influence their lives and largely trust brands that are active on social media. Social selling has become very popular within the last few years with influencers staggeringly garnering customer loyalty and retention.

Customers will associate their health and wellness lifestyle with brands they like and trust. Buying trusted brands is more important to people in all countries with 82% of respondents saying products must be scientifically proven.

Socially conscious

More customers embracing healthy and organic lifestyles facilitates more clean-living standards in other areas as well. This means the target audience for the wellness economy is interested in not only socially conscious products but socially conscious companies. While people are assessing the benefits of plant-based eating for human health their natural pull is also environmental, ignoring further dangerous chemicals and toxins. Dr Alsona Pulde says “in 2022 we’ll become more mindful of what we consume and its impact on the planet.”

 

“87% of consumers want brands to act now to encourage future sustainability.“

 

 

 

Food creates 20 – 30% of all global carbon emissions, with a large portion of that being animal food consumption. The transition to more plant-based foods can decrease greenhouse gas emissions by up to 70% by 2050. A diet known as the “climatarian” diet which focuses on plant-based foods can reduce the risk of diabetes, high blood pressure, heart disease, autoimmune diseases, and obesity. Though good pricing will always matter to consumers, more people are keen to natural sustainability in 2022 and are making significant changes to their lives, and shopping behaviours. They will seek brands that are more natural and globally conscious.

A study from North America, Asia, Europe, and the United Kingdom also confirmed that customers want Eco-friendly packaging. More than 80% of participants felt that “it was important or extremely important for companies to design environmentally conscious products.” Knowing this matters when you work with a 3pl like Selazar that uses eco-friendly packaging.

 

Wellness industry conclusion 2022

The health and wellness industry is looking promising in 2022 as more customers embrace self-care retail. Due to the pandemic, more eCommerce retailers can expect strong sales as more shoppers have increased trust in shopping online. UK’s top 100 retailers said, on average, their online traffic increased 52% during the pandemic. It’s the golden age of shopping from home today. It’s important that companies are digitally focused. The use of smartphones alone for online shopping has more than doubled since 2018.

So, embrace new channels to reach your target audiences, relay a lifestyle-focused brand as well as a socially conscious one, and be aware of the latest trends for what your customers are seeking in 2022. Lastly, also remember that next day delivery matters. Working with a reputable logistics company that allows you to control your own branding and offers swift final mile delivery matters for customer happiness and repeat sales. Happy selling.

 

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Selling with Amazon: Managing Inventory, Costs, & Seller Limits

When many take the journey of exploring an eCommerce business to start, selling with Amazon can be highly attractive. After all, they’re the biggest company in the world, right? However, when it comes to managing inventory and costs, it’s important to understand what you’re actually getting into.

 

Table of contents

1) Inventory management and costs

2) Selling with Amazon: FBA storage fees and other FBA fees

3) Amazon Seller Limits

4) Selling with Amazon: Inventory Performance Index

5) Deciding on your 3pl provider

6) Important questions to ask for fulfilment services

 

Inventory Management and Costs

Inventory management and understanding the basic costs of doing business matters when building and scaling a profitable business. Having good oversight of your operations when it comes to the parameters of outsourcing your fulfilment operations is critical to your success. You have a fiscal responsibility to make sure you understand what’s coming in, what’s going out, and if you’re getting the best return on investment with your fulfilment provider.

It’s not easy running a business. There are a lot of moving parts, and you must make specific educated decisions to determine your profit margin to pay your bills, employees, utilities, etc. One of the biggest mistakes business owners make early on is improperly handling cash flow and making bad projections.

 

“In the UK, 20% of businesses fail within the first year while a staggering 60% go bust within 3 years”

 

This idea matters when you partner with a 3pl or Amazon fulfilment centre. Understanding your partnership agreements and costs will either be a hindrance or a benefit to your business.

In this article, we want to do an analysis of Amazon FBA so that you can be educated on the specific costs of doing business. This way you can make an informed decision when partnering with a third-party logistics provider. We will be taking a deep dive into the popular Amazon FBA program to explain their services, and how a 3pl like Selazar compares.

 

Selling with Amazon: FBA Storage fees and other FBA fees

If you are enrolled in Amazon FBA and have stock in their fulfilment centre, you will be paying a wide range of fees. From referral fees to monthly plans and more, you will see how quickly the costs add up for outsourcing your stock.

Running a successful business means being crystal clear on your profit and loss, and how these fees will affect those numbers. See the following fees below to understand Amazon’s pricing.

 

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What are Amazon’s FBA fees?

1) Monthly plans – Individual and Professional

An individual plan is 75p for every item sold and £25 a month for a professional plan (no matter how little or how many items you sell).

2) Referral fee – This is a fee with both plans that takes profit from the sale of the product. This commission ranges from 7% to 45% depending on the product.

3) Monthly storage fees – Storage costs range from 48p per cubic foot per month between January and September, and up to 68p between October and December.

4) Long term storage fees – After 365 days if you still have unsold stock in an Amazon fulfilment centre, you will be penalised for keeping it there. The cost adds to your monthly costs, ranging from 9p – 86p per unit.

5) Fulfilment fee – Charge to pick and pack each product. The cost depends on the items category, size, and weight. This cost ranges from £1.35 for small envelope size items up to £5.52 for items with weight over 10kg.

6) Labelling fee – A fee of 15p will apply for each Amazon label printed for your SKUs at FBA headquarters.

7) Shipping fee – This is the cost for shipping your products to customers. These range from smaller packages (10 mg or less) of £1.75 to larger packages (3kg to 21kg) for £3.81.

8) Returns processing – Any returns from customers are given a processing fee of 20% of the original product, up to £5 for each line item, minus the original profit you made.

As you can see, there is a wide range of fees. Selling with Amazon is not as simple as you might expect before you outsource your order fulfilment. As a 3pl, Selazar has fewer costs, giving sellers more clarity.

If you’re interested in seeing the precise numbers for FBA yourself, you can use Amazon’s FBA calculator.

 

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Amazon Seller Limits

During the summer of 2020 when the pandemic was surging and eCommerce was thriving, Amazon sellers got a surprising announcement.

 

“To maximize selection for customers during peak season, we are introducing ASIN-level quantity limits on products in FBA. Most products will have enough space available for over three months of sales.”

 

This means that Amazon was putting a limit on sales.

This was sad news for third-party sellers. They could no longer send substantial amounts of inventory to be available to consumers, thus losing out on sales.

A maximum of 200 units suddenly became the threshold for sellers with new products. This was shocking for many, especially those who compete with other related products and have already lowered their costs due to pricing wars. A maximum of 200 units did not mean a lot of profit for many sellers.

Then, again in April of 2021, Amazon announced there is no longer a maximum for ASIN-level quantity limits. What they said instead is that restock limits will be set at the “storage-type level.” This means that now there will be different limits for storage types, such as smaller items and larger items.

 

All smaller standard sized products will have a combined storage limit, and your larger items will also have a combined storage limit.

Amazon storage limits are calculated using several factors:

• Your sales volume

• Available capacity at the fulfilment centre

• Your Amazon quality score (below)

Inventory management can prove to be challenging with these various changing rules placed on sellers. You need to decide if you’re willing to work with these types of penalties and regulations.

 

Selling with Amazon: Amazons Inventory Performance Index (IPI) can affect your sales

Amazon has developed a system to gauge the performance of third-party sellers’ products. This metric is known as the Amazon inventory performance index and influences your overall success in their marketplace. This is basically your Amazon inventory quality score.

Scores when selling with Amazon can range anywhere from 0 to 1,000.

Is this like a credit score? Yes, basically.

 

What is a good and bad Amazon score?

Below 500 – Needs improvement and your business must take certain actions to improve it. Before July 1st, 2021, it was 450.

Above 500 – Good. This means that your business has a good standing with Amazon.

 

Is having a score bad for sales?

The score is also used by Amazon to measure how you manage your inventory over time. Are you fixing listing issues, replenishing levels well, and how is your feedback from customers? It also indicates how well your products are selling and sets a limit for how much inventory you can have at Amazon. So, yes, a bad score will have a negative impact on your sales.

 

“If your Amazon score is below 500, you will be subject to storage volume limits”

 

Also, because this score is measured on a monthly basis, if you have a hot selling product over Christmas, your score will decrease when it is off-peak season. This means that if you sell 10,000 products over Christmas, but someone else sells 500 consistently, they may have a better score than you. Does that seem fair?

The Director of enforcement strategy at Open Markets Institute had this to say about Amazon:

“Amazon has the power to bury sellers and suppliers if they don’t comply. Amazon is able to cut off its competitors’ access to inventory by leveraging its monopoly power.”

 

 

Fake Reviews: Selling with Amazon

Many sellers have complained about fake negative reviews on Amazon, as this affects their quality score (IPI). Whether from competitors or not, these reviews deeply affect sales.

 

“79% of consumers are influenced by products with the best ratings and reviews”

 

As sellers have complained more and more about this issue, many of them believe there is not enough being done. They feel this is because:

1) It’s too challenging for Amazon to investigate the sheer number of fake reviews

2) There are not enough verification regulations in place to connect the buyer accounts with the fake verified reviews

 

Deciding on your 3pl provider

When Selazar set out to create an innovative tech-first approach towards fulfilment services, it also decided to take a unique approach towards costs. By creating a fulfilment service that truly benefits the seller, this will encourage better business and better service for customers. This is done in the following ways.

•No onboarding costs

• No long-term storage penalties

• No profit-sharing costs

• Offer complete custom packaging solutions for brand control

• Offer a navigation portal with robust technology for clients to manage all their inventory, from anywhere, free of cost

• Offer hassle-free returns

• Offer bundling services for businesses with multiple products

  • Offer bulk shipping for bigger b2b orders

• No storage limits

Deciding when to switch to a 3pl may feel overwhelming when your business feels like your baby. Here are a few other questions to consider.

 

Important questions to ask for fulfilment services:

1) Do I have complete control over my inventory and selling limits?

2) How much am I willing to pay for monthly storage and fulfilment costs?

3) Do they offer custom packaging?

4) Do they offer same day dispatch and order processing?

5) Can the 3pl provider meet my sales demands as my business grows?

6) Do they offer customer service?

7) How quickly can the 3pl take on my stock?

8) Will my orders reach customers in two days or less?

9) How accurate is the pick and pack process?

10) What are the additional fees associated with my account?

11) Do they offer eco-friendly packaging?

 

These are all critical questions to know when you start with a 3pl fulfilment provider. Selling with Amazon may not be in your best interest as a business owner. It is important to understand everything from exact costs to the exact services. If you’re interested in our 3pl services, please set up a discovery call with us today so we can learn more about your business needs.

 

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Expanding Fulfilment Operations with new 3PL Warehouse

Announcement: Our new 3pl warehouse

London, 26 May 2021: Rapidly growing eCommerce fulfilment company Selazar has announced the expansion of its operations, with the opening of a new state-of-the-art flagship 3pl warehouse in Nuneaton, Warwickshire. The new warehouse will see the UK-based tech company increase its reach to all areas of the country via this prime geographical location.

 

 

Selazar, which was founded in Belfast and also has offices in London and Birmingham, has been on a solid growth trajectory since its launch in 2019. The company has developed a highly innovative proprietary eCommerce fulfilment platform and primarily services medium-sized and bespoke retailers throughout the UK.

The new flagship 3pl warehouse offers the UK’s most accurate fulfilment service.

It is designed for high-speed, high-volume operations and is already demonstrating its capabilities. In the initial test phase, pick time was reduced by 20 percent within 30 days of the commencement of operations. Peak output volume for the facility is 250,000 orders per month and 1,000,000 picks per month at full speed.

Commenting on the opening of the new warehouse, Jack Williams, CEO of Selazar said: “Our new state-of-the-art warehouse marks an important milestone in our ability to provide fast and innovative fulfilment services throughout the UK. As we push to bring turnaround times lower and lower, we are constantly working to optimise our performance. At the Nuneaton warehouse, we’ve managed to turn orders around in less than 30 minutes. Our new target is sub-15-minutes. As an emerging start-up being recognised within the tech eCommerce space, Selazar is proud to bring 75 new jobs to the local community in the near future. “

The flagship 3pl warehouse setup was completed in record time, only two weeks to fully prep the site for change over. Selazar successfully migrated to the new site using our tech-first approach without interrupting our partner’s service. The new site will become home to a technology innovation centre where product lines and new start-ups can benefit from market-beating technology while they build pipelines and scale their business.

 

The start of an explosive expansion journey began right here in Nuneaton. The lessons learned and success of onboarding this site will form the base plan for Selazar’s expansion across the UK, EU and the Globe.

Selazar customer Will Duffield CEO & Founder, Starwood Sports – a UK-based retailer of premium products for recreational sports said: “Selazar has been an ideal partner for Starwood Sports, in both optimising our customer experience and distribution costs. The team understands our business and offers outstanding service that has helped us to grow our business. We’re certain the new Nuneaton warehouse will extend Selazar’s capabilities, which will benefit us and our customers.”

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About Selazar

Selazar is a UK-based tech-first eCommerce fulfilment specialist. The company has developed a proprietary, cloud-based warehousing and fulfilment platform for eCommerce retailers. We pick, pack and ship products to your customers as efficiently as possible. No fuss, no headaches, just streamlined, intelligent automated operations. Our transparent system lets retailers understand, track and ignore the complex process of fulfilment, allowing them to get on with the real work – growing their business.

Being recognised in Northern Ireland for our innovative approach, Innovate NI and Tech Nation have both recognised Selazar with awards for our easy-to-use platform.

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Logistics Services for eCommerce: What is 3pl, 4pl, 5pl?

TABLE OF CONTENTS

  1. 1pl Logistics Services

  2. 2pl Logistics Services

  3. 3pl Logistics Services

  4. 4pl Logistics Services

  5. 5pl Logistics Services

 

There is always specialised terminology within various industries. For the logistics industry, you will most often come across 3PL, 4PL, and 5PL. What these terms do is categorise what logistics services these specific providers offer. Depending on the services needed for your business, you will choose one of these terms. So, what is the difference? How do you know which one you should be using?

Outsourcing for logistics was a rare occurrence before the 1980s. However, as advances in technology began to happen, this transformed supply chains. With the rise of artificial intelligence (AI), outsourced logistics keep improving every year.

Having a clear understanding of logistics services and supply chain management can help your business financially. Things such as are my business spending too much money on transportation? Will outsourcing to a 3pl or 4pl save my business money? What exact services do I need, and do I need something simpler and more streamlined? What are the advantages and disadvantages of each service? So, let us discuss.

To have a broad overview of these services, we will also be touching on 1PL, 2PL, and 3PL.

 

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1PL (First Party Logistics)

What is a 1PL?

1pl simply defined means first-party or first-person logistics. The company or business with the product also takes care of all its own transportation and logistics. You will see this a lot with retailers and grocery outlets. From Sainsbury’s to Marks & Spencer, they have their own trucks and take care of their own logistics.

What are the advantages and disadvantages of a 1PL?

Advantages – Having complete control over your own logistics can be seen as an advantage. Internal communication needed only instead of external communication. The company has complete authority to manage operations.

Disadvantages – Handling your own transportation and logistics is expensive and time-consuming. Therefore, only the most prominent retailers tend to handle their own logistics. They must pay for drivers, trucks, fuel, and so much more like insurance and vehicle maintenance. Could that money be spent better with having less employees who simply coordinate deliveries with a shipping service?

 

 

2PL (Second Party Logistics)

What is a 2PL?

2PL simply defined means second party or second person logistics. This is the scenario if a retail outlet didn’t use its own trucks and instead hired a service. If a manufacturer wants to send goods to a warehouse, they could a hire a shipping service to take care of that delivery. If a car dealership sells cars online and needs a car delivered across the country to a customer, they would hire a second party semi-truck company to do it. Some companies may also use the UK Royal Mail Service to send packages to their customers. So, 2PL basically covers transportation. Uber Eats, or Deliveroo could be considered 2pl’s as they only handle the transport of goods from restaurant to your front door.

What are the advantages and disadvantages of a 2PL?

Advantages – By using a second party, the business frees up time and company resources to focus on other aspects like growth. They may also be saving a lot of money by not hiring extra staff and trucks to handle their deliveries. Each company is different, so all costs must be considered. Would this option be cheaper for your business?

Disadvantages – You have to give up control to another party. If there are issues, you must rely on others to fix them. Quality control could be an issue if the provider is not a top-notch service. You’re still managing order processing and inventory management, which is very time-intensive. ( link to order processing somewhere?)

 

 

3PL (Third Party Logistics)

What is a 3PL?

3pl simply defined means third party or third person logistics. This is where outsourcing your fulfilment needs really ramps up, and service benefits kick in. The day-to-day operations of a 3pl range from receiving to final-mile shipping. They include:

Storing and managing your inventory in their warehouse, Inventory Management.

Picking and packing your items when an online order is made, Order Processing.

Tracking your products to their final destination, Order Management.

What are the advantages and disadvantages of a 3PL?

Advantages – Companies can outsource all their fulfilment needs for customers. They can rely on the competence and proficiency of a company that handles substantial amounts of consumer goods. This is particularly attractive for online sellers who are time short and looking for intelligent solutions. They can solely focus on growing their business and managing customers.

Disadvantages – Quality control is out of reach. Therefore choosing the right 3pl with a good track record of quality control and competence is critical to success.

 

 

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4PL (Fourth-Party Logistics)

What is a 4PL?

4PL simply defined means fourth party or fourth person logistics. A 4PL acts as the complete intermediary between their partner brands and several logistics companies. Essentially, they will work with other 3PL’s and manage the day-to-day operations closely with their supply chain network on behalf of their clients. They typically do not own warehouses, but partner with warehouses and 3PL’s in their delivery network to send items to for distribution.

What are the advantages and disadvantages of a 4PL?

Advantages – Freeing up the time to the retailer allows them to focus on day to day business operations.4pl’ss work to be very strategic in their process as they work to find the best solutions on behalf of the company. This means getting multiple quotes from differ3PL’s, pointing out inefficiencies and auditing the entire process.

Disadvantages – A inexperienced 4pl without the proper credentials or supply network can easily cause hiccups in the companies” supply chain. Though it can be helpful for a 4PL to control your logistics, you don’t have complete control over warehouse operations. Management of physical operations at the supply warehouses is removed.

 

 

5PL (Fifth-Party Logistics)

What is a 5PL?

5PL simply defined means fifth party or fifth person logistics. This service takes it one step further from a 4PL. Again, this is more of a consultant position rather than owning physical operations.

Their management of supply chain operations expands internationally, whereas 4PL and below tend to focus more on domestic operations. More than that, they also manage the supply chain from the supplier to the retailer or manufacturer they represent.

Basically, suppose they represent a company that makes computers. In that case, they handle sourcing the individual computer components for the computer manufacturer to build their computers while also managing the completed computers to be sent to customers afterwards.

They will source the services a company needs as well as negotiate contracts. Quite often, they focus on getting the best rates from many 3PL providers.

What are the advantages and disadvantages of a 5PL?

Advantages – They focus on leveraging technology to create highly efficient networks. The focus on eCommerce companies with no physical store space. Again, they are a convenience to companies that don’t want to handle logistics.

Disadvantages – Relying on a company that does not physically manage the process from the warehouse or supply chain. They work primarily from an office, not a warehouse.

 

I hope you now understand the different logistics providers, what they do, and how they operate. As a 3PL, Selazar believes we are the best solution for eCommerce companies looking to grow their brand and outsource their fulfilment. Our partners can meet us and see our warehouse. We are transparent and enjoy showing our clients our systems and automation to improve final mile delivery services to their customers with efficiency and precision.

 

 

 

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The Selazar Pitch: 3pl and Fulfilment Centre

Table of Contents

  1. What is a 3pl?

  2. Our tech-forward approach

  3. Software with a service (SWAS)

  4. Advantages of late dispatch

  5. No fixed contracts/pay as you go model

  6. Maintain your brand control

  7. Product bundling

  8. Why Selazar?


 

The truth is not all companies are created equal. It’s the same with 3pl fulfilment services. When you analyse a company, break it down into parts, and decide how it compares to other companies, only then can you make an intelligent and informed decision. Selazar makes managing your inventory and delivering your products easy, driving better reviews from more satisfied customers.

Running your own eCommerce business is exciting – especially when you start turning a profit! However, you must be prepared when sales start to skyrocket and the demand for your products increases. Launching a beautiful online store and creating branded products that your customers absolutely love is only the beginning.

In this article, you will learn how Selazar is innovating 3pl fulfilment with our tech-first approach. Unlike the old-school methodology, we’ve built our system from the ground up to be just as nimble and dynamic as your eCommerce store. We want to walk you through the great benefits we can offer your online business and why you should consider partnering with Selazar fulfilment services.

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3PL

Selazar is the UK’s most accurate third-party logistics provider that supports eCommerce business with order fulfilment. From sale to final mile delivery Selazar is at the forefront of technology and warehouse logistics innovation. An award-winning service that has been publicly recognised by the logistical operations industry time and again. We partner with some of the most exciting brands in the eCommerce space, and we want to bring that same success to you.

We will pick and pack your products, manage your product inventory, and ship them directly to your customers. As a tech-first 3pl, we process faster with more organisation than you could ever hope to achieve self-fulfilling. You want your business to be a success. We want your business to be a success, which is why we work diligently with our partners to execute all their needs and requests. We listen to our partners and then deliver upgraded features that help sellers reach growth targets.

 

 

Tech forward approach

inventory software, smart warehouse, e warehouse, logistics service provider, 3pl warehousing, on demand warehousing, warehouse management, wms system, 3pl providers, warehouse stock, warehouse solutions, warehousing and distribution, warehousing services, warehouse storageWhere the old-school approach of logistics has failed in the past, emerging technology combined with smart processes has revolutionized the logistics industry. Being at the vanguard of technology is crucial for b2b and b2c in the 21st century. Prioritizing the entire journey of product fulfilment can often be overlooked by business owners. Focusing on sales but lacking in fast delivery can negatively impact the customer experience. Tech lead fulfilment speeds up delivery practices for your business to deliver products faster and smarter. Slow service and disgruntled customers are your business’s last needs when trying to scale operations.

By pointing out some of the typical vulnerabilities in supply chain management, Selazar was able to evolve the entire process with data-driven solutions. Our dynamic built-in tools allow our digital systems to easily align inventory tracking into our warehouse operations. From product absorption to final mile delivery, our fulfilment operations can be tracked from a desktop or mobile device.

Using smarter software, we have implemented time-saving practices during our pick and pack processes that help reduce typical warehouse errors such as missing items and slow dispatch speeds. Because of these safeguards, we have maintained a 99.9% pick accuracy rate since our inception. This is the type of focus, core competency, and careful attention to detail sellers need to partner with to delight customers from the store to door.

 

 

Our 3pl mobile solutions, combined with smart business practices like state-of-the-art scanners and using QR codes instead of bar codes, deliver more information to our network rapidly. Having the unique ability to deliver quick status updates with inventory offers our clients complete transparency throughout the supply network at all times. Rest assured that your service expectations will be met, and your customer’s satisfaction will be evident by all your new delivery-focused reviews. From warehouse to seller, benefits like this improve efficiency and sales.

By embracing technological solutions, you reduce human error and implement time-saving practices. When dealing with large volumes of inventory, automation also makes it much easier to manage day-to-day operations, reducing costly mistakes.

 

“43% of small businesses either don’t track inventory or use a manual method”

 

Two-way stock sync, for example, allows our systems to communicate with your seller’s dashboard so that you have an overview of what’s happening with all products from sale to delivery. When items are sold online, your website is updated from our warehouse side to reflect the correct amount left, ensuring zero errors. This is important because 34% of businesses ship late because products that are not actually in stock are sold. With live inventory across multiple channels, Selazar sellers can ensure order success, serving their customers wherever they decide to engage.

Accurate monitoring of live information provides sellers with actionable information to help manage their business. With our data-driven approach, Selazar helps sellers develop and deploy customer-focused operations.

 

 

Software with a Service (SWAS)

Unlike other 3PLs, we not only offer logistical services such as pick-pack-ship, but we also control all our systems and tech in-house. We don’t outsource our software. We design it. This approach allows Selazar to implement updates and deploy new features with unmatched speed, as our development team has intimate knowledge of the product and how best to integrate new functionality. The highly experienced team undertakes constant aggressive QA testing, ensuring only reliable features are added to our service.

Our innovative tech team have deployed intelligent algorithms, automating the day-to-day processes of fulfilment, bringing the highest possible service level without the need for key personnel. Through our easy-to-understand dashboards, reporting on your success is straightforward, saving you time every day and every quarter.

By using our tech-first approach, we can deliver an agile, dynamic and iterative service like no other. Updates to operations are live from the next order placed – making rapid action to changing environments a breeze.

Our platform has APIs that easily integrate with your Shopify or WooCommerce store further expanding the automatic processes.

As sales are made online, you can track live updates for all your inventory. It’s easy, transparent, and automated. Inventory tracking is a critical component to shipping operations, and what’s also great with our software is that it can be monitored from anywhere.

When the power of automation is utilised, our partners have saved up to 5 hours a week. Let our powerful system do the heavy lifting for you by streamlining and simplifying your operations and network. Freeing your time to focus on those vigorous growth-focused goals.

Late Dispatch

Thanks to Selazars understanding of what motivates consumers, we negotiated industry-beating late dispatch times on our partner’s behalf. This consumer-focused innovation makes delivering a true Next-Day service possible, creating better experiences for your customer.

Dispatch is when a parcel is packaged and ready to be injected into the courier network for final-mile delivery service. All orders received before 7 pm are guaranteed same-day dispatch. This window far exceeds that of our competitors, with same-day dispatch windows that typically end at 2 pm, missing the peak sales period 5-8 pm. Yikes!

Though 7 pm is the cut-off for guaranteed dispatch, we are still picking and packing and dispatching up until 10 pm. Later pick and packing time ensures the best and quickest delivery times for your customers. This is the type of innovation you can expect when partnering with our 3pl services.

 

“Pay as you go” model

Speaking of innovations, we offer it in tech and shipping logistics as well as our approach to customer service. We do this by understanding what businesses need to grow and expand operations. For us, this means keeping costs down for you as much as possible, so you can grow exponentially. We are creative in how we became a more cost-effective solution than our competition. We do this through:

 

1) No fixed monthly storage fees

Why pay for storage if you have no more inventory in the warehouse? That is not fair to you, and we consider it bad business practice for 3pl’s who still use this model. We offer competitive pricing for the time your inventory is stored, but that’s it. When your product is gone, there are no more fees. As stock levels rise with new supply and fall with effective sales campaigns so too will storage costs. Keeping our structure and your operation closely linked has allowed for up to 40% cost saving for some partners.

2) No contracts

As standard, we don’t require contract commitments from our partners, why? Simple – we believe in our platform and the power it gives sellers. We know that once onboard, the time gained and additional capital you’ve saved will validate your decision to join over and over again.

We calculate costs based on the time taken and space used. Our warehouse operations are timed down to the second, so there are no hidden fees. The Selazar billing system allows you to see every step of the process to plan for your future. We offer some of the most competitive and lowest rates in the industry. For full details or a quote, speak with an expert today.

 

Maintain Brand Control with our custom packaging

Branding is highly important because it is how a company is perceived by the public. It not only identifies your product but distinguishes it from other products. You want to make a memorable impression on your customers and allow them to get to know you. At Selazar, we understand this. This is why we have custom branded solutions at our warehouses.

Giving up your brand control to another company (like Amazon sellers do) can be a scary process. You’ve spent so much time contemplating, organising, executing, and carefully designing your personalised packaging. You may have specific types of customised boxes, a particular kind of wrapping, or packaging inserts. You want the customer to receive an exceptional “unboxing experience.” We understand this critical task. When you transition to Selazar, you simply give us all the details, send your boxes and inserts to us, and our workers fulfil every detail. Should you want to make any changes, any updates to this process can be updated automatically via your Selazar dashboard and will take effect the same day. How easy is that?

Brand control is an important marketing tool. That’s why we have dedicated time and attention to it. Our warehouse operatives will carefully complete all the necessary components of your request so that your brand thrives the way you want it to. Your brand is an extension of our brand; therefore, it is handled with the utmost care and attention.

 

Our services

Warehouse storage and handling your inventory

Outsourcing all your products is exciting! You’ve come to a level of success where you finally have the capability to allow someone else to do the heavy lifting for you. We make this process as simple as possible for you so you can get on with growing your brand.

When we absorb partners into the Selazar 3pl fulfilment network, we work with you to transfer inventory to our fulfilment centre. We will walk you step by step through a process called Product Absorption. After your store has been absorbed into our system, we simply send you the printing labels for your inbound inventory so that when the products arrive at our warehouse, they will be scanned and made ready for processing, typically within 24 hours. These are the labels that will be used to manage your inventory for its life with Selazar. This is known as Inbound Stock Processing (ISP) and is seamless and easy to do.

When your products arrive at the warehouse, you can rest assured that your product inventory is safe and secure. Selazar offers 24/7 secure storage facilities. No more boxes stacked 5 meters high in your garage or place of business. No more worrying about managing what products you do or do not have. All you have to do is sit back and let Selazar’s innovative tech and strategic warehouse operations do the work for you. You can follow all updates via your Selazar portal.

 

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3PL Pick and Pack services

Picking and packing are important procedures that a 3pl like Selazar has created into a flawless process for accuracy and efficiency. When it comes to order fulfilment, it’s crucial that the products are chosen correctly and dispatched not long after the customer places the order online. This process is one of the biggest downfalls for many online business owners who fail to get their products delivered rapidly. Failing to get customers packages to them quickly will affect your bottom line. Slow service leads to cancelled orders, affecting repeat business. You’ve done all the hard work building a journey and converting content, images, copy, and using ads to grab their attention. Then, after all that capital and time investment, a poor fulfilment partner can still make you lose customers for life. With Lifetime Value (LTV) being a key metric for growth and investment, partnering with the right fulfilment partner is unavoidable and a critical element to your business.

Ecommerce warehousing saw an explosive boom in online orders during Covid with an 18% growth rate in the UK, and most experts project that it won’t slow down even after the pandemic is over. In a highly congested online marketplace, dispatch speed is your competitive advantage.

 

“70% of customers choose to purchase goods based on delivery options”

 

 

Selazar’s turnaround time for orders is 27 minutes on average, with a 99.9% pick accuracy rate. The entire process is updated through our online portal so that you know what is happening with your products. You will see notifications that read “your parcel has been dispatched” alongside tracking information all from your portal.

 

 

Product Bundling 3pl services

Growing your business, regardless of size, can be costly. Our system allows you to scale the way you want, giving you the confidence that we can support you no matter how you grow. Offering carefully curated product selections from your online store is simple to handle with our intuitive software.

You can increase AOV (average order value), clear slow-moving stock and gain efficiencies in shipping through multi-item fulfilment. Combine your hottest sellers with those less frequent sellers at a discounted rate and reap the rewards of more profitable fulfilment.

Creating and editing different bundles for your products is managed from your Selazar dashboard. Group two or more items together into a bundle, and they will automatically be shipped together. You will see all physical products that were shipped together with each order you receive.

 

Expanding your business operations

We are growth-focused. We know the limitations of inferior systems when business is thriving. Businesses need rapid solutions for scalability that alleviate the stresses of packaging and sending parcels. If sales are skyrocketing, this will only be good if companies can keep up with demand. Otherwise, the long tail curve will slope downwards due to cancellations or refunds. The long-term impact to brand will out way the short-term cost savings of self-fulfilment. Without the aid of technology in fulfilment, the time invested to process orders will grow exponentially until service falls through the floor.

Outsourcing your fulfilment to a company with quick turnaround times like Selazar can get you up and running within a few days. The onboarding process is simple with us. Book a free consultation.

Eco-Friendly Packaging

Not everyone is as aware of eco-friendly packaging as we are. As a value-driven company, we believe in responsible sustainability, a factor that is not only more cost-effective, safer, but more popular as well.

Also known as “green fulfilment,” eco-friendly packaging is included 100% across the board with Selazar. Did you know that more than 80% of customers feel that it is important for companies to design environmentally conscious products?  This conclusion is according to a survey that included over 6,000 consumers in 11 different countries. Three-quarters of those participants said they are currently buying more environmentally friendly products than they were five years ago. Eighty-one percent said they expect to buy more over the next five years.

Being socially responsible is not only good for business but good for the environment. That’s why we use only green fulfilment practices such as recyclable materials and refrain from using plastic packaging. You can rest assured that you’re partnering with a company utilising eco-responsible solutions.

 

Reliable Shipping Network

A shipping network is only as good as the ones who are doing the shipping, right?

As a 3pl fulfilment house, Selazar has partnered with the most reliable shipping companies for both domestic and international deliveries. Our trusted courier network can get packages in customers’ hands domestically within 24 – 48 hours. International delivery will range from 1 day (with UPS EU next-day air service) to a week. Same-day dispatch service is offered as a standard with shipping rates that are as low as £1.12.

As a 3pl, we proudly endorse UPS, Hermes, and Yodel.

 

Our Services in full

Why partner with Selazar 3pl?

As shown, there are many reasons to partner with a 3pl like Selazar. However, to narrow it down for you, we have chosen the top 3 following reasons below to partner with Selazar.

1) Save time

Handling fulfilment is a large and arduous task. Packaging, adding labels, and sending can take up to more than half your time. 43% of retailers ranked inventory management as their number one day to day challenge. We automate so you can innovate.

2) Save money

Are you adding employees to help you with the fulfilment process? Do you have to pay for your own storage space? Are you paying hefty delivery fees? These are all typical costs for B2C businesses. You save money when you use our fulfilment network, our warehouse, and our workers. We can break it down for you line by line if you wish in a discovery call.

3) Grow Your Business

So, you’re saving time, and you’re saving money. Great! Where do you invest that extra time and that extra money? Well, that’s up to you, of course, but marketing would be a smart move. Your business will be better off if you can focus all your energy on growing the business rather than handling mundane day-to-day tasks. The quicker your business will be able to grow and prosper.

Got any questions? Contact us today so we can help your business to thrive. No fuss, no headaches, just stream-lined intelligent automated 3pl operations.

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Technological Innovations Transforming Shipping Logistics

Shipping logistics is a compounded process with several moving parts. The demand for logistic services soared at an all-time high in 2020, nearly doubling its 10-year value. Logistics Business’ report on the demand for UK logistics showed that about 40% of all take-up from 2020 is accounted for by e-commerce, another fast rising industry that’s set to earn a 22% increase by 2023.

Moreover, the pandemic response has created a bigger surge in demand for logistics and an even faster dispatch speed, as previously discussed in our ‘Dispatch Speed is Your Competitive Advantage’ article, as meal kit operators, parcel delivery and fulfilment, and medical suppliers have expanded operations.

The logistics process involves planning, sourcing, and transporting products, among many other things. Indeed, it would be a very complex line of work without technology. You’d have to contend with rapid changes, non-stop operations, and, not to mention, you’ll also have to factor in human error.

Fortunately, the increasing demand for logistics is happening alongside the rise of new technological innovations to help speed things along and simplify the process.

 

Blockchain Technology

Blockchain technology started as a technology for Bitcoin and other cryptocurrencies, and it has made its way into the logistics and supply chain industry. It allows data to be stored on a shared global network, giving multiple companies and stakeholders real-time access to valuable information without letting them alter any of it.

 

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It helps streamline the flow of operations and improve transparency throughout the entire supply chain network. Tech expert Vitaly Kuprenko’s write-up about the pros of blockchain emphasises how blockchain technology reduces operational expenses too. He attributes this to blockchain’s ability to eliminate the need for intermediaries, thereby diminishing commission expenses.

Another feature of the technology that Kuprenko talks about is the security of transactions made within the blockchain; it’s impossible to change or edit a transaction once it’s documented on the network—leading to a reduced chance of fraudulent activities.

Telematics

Telematics, or telecommunication and information technology, has been used in several industries for many years. Although the logistics industry has certainly benefited from it in recent years. Telematics streamlines the management of various warehouses and large fleets—and as the logistics industry will continue to grow this technology will become increasingly important.

 

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Two of telematics’ principal contributions to logistics are product transparency and traceability. When integrated well into logistics operations, telematics technology lets companies track where a given shipment is in real-time. What’s more, future fleets are projected to be made up of connected vehicles, making them ready for telematics.

In fact, Verizon Connect’s post on connected technologies highlights how the connected truck industry in the European market will reach £9.70 billion by 2023. This is at a year-over-year rate of 12% from 2018. With a mix of built-in tracking devices and connectivity features in future fleets, it’s incredibly beneficial to start including telematics in your fleet management now. This gives you a competitive edge and a smoother operations chain.

 

Expanded Automation

It’s said that the logistics automation market is expected to reach £88.24 billion by 2027, from £23.5 billion in 2018. This makes it one of the leading logistics and supply chain trends.

From self-driving vehicles and warehouse automation to industrial robotics, automation is set to dominate the logistics industry. For one, giant online retailer Amazon is using Kiva robots to automate the warehouse selection and packing processes.

These robots fulfil “one-click” orders in less than 15 minutes, a mere third of the total time it would otherwise take a typical human employee to perform the same task.

Another way to incorporate automation into your business is through using a cloud-based fulfilment hub like our End-to-End Fulfilment Service, where you can manage your eCommerce business through an easy-to-use portal. We’ll help you come up with a fulfilment solution from the warehouse down to last mile logistics. It allows for a hands-free approach to eCommerce while still letting you track all transactions and enjoy full transparency.

 

Wearable Devices

This may be the next step after using smartphones and tabs, but it’s seeing a surge in the logistics industry since it frees up more hands. Using wearable technology, employees are able to access data and information almost instantly without having to review and create paperwork. This maximises manpower and time.

One example of how wearable devices are used according to Food Logistics, is the integration of voice technology with wearables: A warehouse associate could drop a cart at the end of an aisle and then speak a command into their wearable device, which would then trigger an automated machine to pick up that cart for the next step in the shipping process.

 

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In addition to that, wearable devices can be used as safety and health tools as they can help monitor employees’ vital signs. However, it must be said that companies could face an initial challenge when they first adopt wearable technology. Employees may not be adept at using them immediately. It requires a seamless onboarding process and workflow to see significant efficiency improvements.

“Green” Logistics

“Green” or environmentally-friendly logistics isn’t just a trend; it’s part of a global movement. Fortunately, this move to help conserve the planet is cost-effective and one that can even help with customer retention. Contrary to popular belief that going “green” costs more, opting for a more sustainable route actually saves you money. It pushes you to reduce waste and increase the efficiency of warehouses, vehicles, and machinery, and this can reflect in leaner expenditure. A great example of this is UPS’ investment in 10,000 electronic delivery vehicles, decreasing their expenditure on gas and maintenance.

Another reason to make this change for the planet is to enjoy an improved reputation. Roughly 81% of consumers believe that businesses should participate in earth conservation efforts—which could very well factor into their buying decisions.

Logistics as we know it will continue to evolve as technology develops, and it will help create a more connected, sustainable, and integrated global community.

 

 

Exclusively written for selazar.com By Jem Haw