Ecommerce Shipping & Handling in 6 Steps + Free SOP Checklists

The management of ecommerce shipping and handling is a crucial point in the purchase process, it can make or break your reputation. Follow our six-step guide to ensure everything runs smoothly when you adopt this popular practice.

The “cheapest shipping for e-commerce” is a process that involves 6 steps. The article will give you the step-by-step guide on how to set up and manage your own e-commerce shipping & handling in your business.

The process of managing inventories, precisely choosing requested items, inspecting and packaging orders, marking shipments, and scheduling package pickup or drop off to carriers is known as ecommerce shipping and handling.

Standard operating procedures (SOPs) for shipping and handling assist busy ecommerce merchants manage these everyday chores quickly, precisely, and cost-effectively.

Even if you use best practices for shipping and handling, you’ll discover that these procedures consume a substantial amount of time and resources (especially as your business grows). Outsourcing these activities is a more efficient and cost-effective choice for many merchants. ShipBob is a hands-off fulfillment service that offers speedy two-day delivery and no monthly minimums.

For a free quotation, go to ShipBob.

Download our free SOP checklists to get started if you choose to handle shipping and fulfillment in-house. To access them as an editable Google Doc or to get a PDF, go here.

Ecommerce Shipping & Handling Steps

Step 1: Layout and Configure Your Warehouse

Your storage and packing rooms must enable efficient shipping and handling, whether you’re working from home, a leased storage facility, or a dedicated warehouse. As a result, your first step should be to create a facility plan that includes the following:

• Efficient inventory storage: If you can’t rapidly identify requested products in your warehouse, your whole ecommerce shipping and handling operation will break apart. You’ll always know what you have—and where it is—if you use a good inventory management system and follow the steps outlined below.
• Room to choose items and pack orders: Leaving enough space to stage, check, and pack orders helps to avoid expensive packing and shipping mistakes (which keeps your customers happy).
• Defined shipping and receiving areas: If your space permits, clearly dividing incoming and outgoing goods promotes greater accuracy, quicker pickups and dropoffs, and easier management.

An example of a warehouse plan for a medium- to high-volume ecommerce business with efficient storage, workstation, and workflow patterns (shown in red)

Your setup will be determined by the size of your area, the things you offer, the number of your employees, and how often you’ll need to pack and ship orders.

In our warehouse layout guide, we show you how to make the most of the space you have and show you an example ecommerce warehouse plan.

After you’ve set up your workspace, you may customize the SOPs we’ll go through below to fit your individual business.

Step 2: Inventory Management and Monitoring

Any shipping and handling strategy must include effective inventory management methods. The whole process is vulnerable to blunders and losses if you don’t keep a regular eye on your inventory.

We’ll look at three sets of processes that may help you manage inventory as it enters and flows through your warehouse more effectively.

Lightspeed POS, for example, is an inventory management software that works in concert with established best practices and SOPs. It enables you to establish purchase orders, track things by size and color and make revisions as required, as well as connect stock numbers to every sale you make.

Lightspeed POS is offered for a 14-day free trial. To visit Lightspeed, go here.

Inventory Storage & Tracking Procedures

Inventory storage rooms that are well-organized increase efficiency and save time spent looking for lost things.

Many variables influence how you keep and monitor your items, including the size of your business and facility, the number of different products you offer, and the inventory management software you employ. Small businesses can typically get by with basic shelf labels on warehouse aisles, but bigger businesses might profit from merchandise that is monitored by barcodes.

Whatever system you choose, consistency is crucial, and most businesses may benefit from inventory practices that follow this fundamental methodology:

Best Practices for Inventory Storage Area Management

• Set up warehouse storage facilities with clearly designated storage and/or pick locations such labeled shelves, bins, or sectioned or whole pallets.
• Designate overstock storage sites, if relevant, and cross-reference these areas to your pick locations for convenient access when pick locations become depleted.
• Product SKU, product name, any variants (color/size), and a barcode should all be included on shelf, bin, and pallet labels (if using scanners).

SOP for Inventory Tracking Example

1. To print stock locations on pick lists and inventory count sheets, enter the warehouse location (aisle/shelf/bin) of each product into the inventory management system.
2. If all items have internal barcode labels, apply barcode stickers to goods as soon as they arrive, before transferring stock to storage or pick locations.
3. Always keep received stock in the designated area.
4. Overstock should be stored in specified overstock places if the allotted space is filled.
5. If you’re keeping excess inventory at a new location, make a note of it on or near the primary location label, and report it up the management chain if necessary.
6. Before shelving or storing a new product, make sure the storage location is identified or put into the inventory management system.

Procedures for Receiving Inventory

Receiving shipments, counting things, and updating amounts in your inventory management system are all simple steps in the inventory receiving process.

However, two things may sabotage your efforts: vendor shipping mistakes and poor item counts.

Both result in supply disparities, which result in inexplicable inventory shortages, unshippable orders, and irritated customers. Follow the inventory receiving recommended practices outlined below to prevent these expensive difficulties.

SOP for Receiving Inventory as an Example

1. Count all received boxes, pallets, or sent units against the shipping label at the time of delivery, noting any differences between the number of units anticipated and those delivered.
2. Until it’s time to unpack, keep all incoming packages together in a designated receiving area.
3. Unpack units (if necessary) and sort them into categories.
4. Count the products you’ve gotten against your purchase order rather than the vendor’s packing slip.
5. Update the received item counts in your inventory monitoring system if the goods received match your purchase order.
6. If there are any inconsistencies, contact the vendor to get them resolved, and update or change the numbers in your inventory monitoring system appropriately.
7. Organize things received according to product shelving or storage processes.

Procedures for Counting Inventory

Inventory counts are an important part of inventory management. There are two sorts of inventory counts that may help you stay on track with your numbers:

• Annual counts — a thorough examination of stock for tax reasons.
• Cycle counts — a partial inventory evaluation for continuous accuracy.

Annual counts include physically counting all of the products in your inventory across the board. Because it’s time-consuming, labor-intensive, and must be done while sales are halted, most businesses only do it once or twice a year (usually during a temporary shutdown).

Periodic counts of a line, category, or sector that fit within weekly processes are known as cycle counts. They’re what keep inventory-based ecommerce businesses on track, so include them in your standard operating procedures.

These regular counts help you spot faults in receiving, storage, and choosing before they become big issues. They also keep your stock regions and counts orderly, making yearly counts a snap. Here’s how to include cycle counts into your daily routine:

SOP for Inventory Cycle Counting

1. By product line, category, or storage location, choose a percentage of inventory to count.
2. Use our free inventory count templates to generate your own inventory count sheets or print inventory count sheets from your inventory management system.
3. Determine a time and assign two employees to count the goods without interruption.
4. One employee should count the items, including any overstock, and the other should record the numbers on the inventory sheet.
5. Once you’ve finished, double-check that the figures match what you have on hand.
6. If inventory counts do not match inventory records, investigate and correct any receiving, storage, or picking mistakes.

Picking Orders is the third step.

Picking is the process of collecting specified merchandise from your inventory that is required to complete an order. You have two options for selecting products:

• Using choose lists in batches
• Packing slips are used each order.

The ideal technique for you is determined by the technology you employ, the amount of orders you get, and the items you offer.

Order problems, expensive adjustments, and customer service difficulties may all be avoided with precise selections and comprehensive quality checks, regardless of the picking technique you utilize. Here are some SOPs for each pick technique that you may use or adapt to your operations:

Procedures for Batch Picking

If you just offer a few distinct things, picking stock for orders in batches and sorting them into individual orders during the packaging process is simple. For orders with a small number of similar items, this is a quick way to handle volume-picking. With this selection approach, you’ll utilize a choose list to aggregate the stock requirements for a batch of orders.

SOP for Choosing Sample Batches

1. Print (or make) a pick list with all of the things you’ll need to satisfy a variety of orders. Items should be listed by SKU or product name, with total quantities for each item included.
2. Pick lists should be assigned to pickers depending on line or warehouse location.
3. Pickers should pluck the entire amount of each product according to the pick list.
4. Set aside a spot near the packing area to sort the things that have been selected.
5. Sort or organize selected products into separate orders using printed order packing lists for final inspections before packing.

Picking Procedures for Individual Orders

The choose list for per-order picking is a single order packing slip or invoice. Each order is chosen in its whole and sent to packing right away. Batch selection avoids the need for an additional sorting step.

Per-order picking necessitates sending pickers all across the warehouse to satisfy a single order, making it inefficient for big businesses. However, in smaller warehouses, it often works effectively.

SOP for Picking Samples Per Order

1. Order forms should be printed (packing slips or invoices).
2. Sort order papers into categories based on warehouse location, line, or category, and then categorize by complexity.
3. Provide pickers with a list of orders as well as crates, containers, or boxes into which they may sort the things as they pick. Rolling carts or trolleys help speed up the procedure in huge warehouses.
4. Pickers should carry each order’s pull items to designated staging areas near the packing area for final inspections before packaging.

Step 4: Review and Package Orders

Create the most of your last opportunity to make an impact on your consumer, as well as your sole physical touchpoint.

Sloppy and negligent packaging reflects poorly on your company, thus it’s critical to plan your packing operations around your customers’ unpacking experience.

You don’t have to produce amazing personalized packaging (though it’s a lovely touch), but you do have to show them that you care by making sure their purchase is right and properly secured to safeguard products en route. Here’s how to do it:

Procedures for Final Checks and Error Resolution

Before orders are dispatched to customers, they must be double-checked. Before packaging, have personnel verify the orders of other employees if at all feasible. Having the same employee choose and verify orders results in errors being sent out the door (even when barcode scanners are employed), but having order checking as a separate operation promotes 100% correctness.

Because errors can happen, you should incorporate a process to notify them without disrupting productivity, such as this:

Final Check and Error Resolution SOP Example

1. Staff members should use barcode scanners or visual checks against order documentation to complete final checks on chosen orders.
2. Look for differences in size or color.
3. If necessary, have employees physically mark line items with a checkmark to assure correctness.
4. If a mistake is discovered, transfer it to a specified area where it may be repaired without interfering with the checkers’ work.

Another possibility is to merge the order verification and packaging processes. The steps for this surgery are outlined below.

Procedures for Order Packing

Your order packing technique may be customized to meet the size of your workplace and team, as well as the various packaging materials you utilize.

Whatever technique you choose to pack your orders, it must be done in a methodical manner to guarantee correctness every time. Here’s an illustration:

SOP for Sample Order Packing

1. Assemble the necessary shipping boxes or mailers for the next round of orders.
2. Transfer one or a few checked orders from the staging area to the packaging area (or pack checked orders where they sit if working in a small space).
3. Make a last check (visually or by barcode scan) that the products to be packaged match the paperwork for the order.
4. Pack things as required using the recommended packaging materials.
5. Place the order papers in the box or attach it to it, then transport it to the shipping area to be labeled.

Step 5: Assign labels to the parcels

Some merchants (such as subscription box services and firms that offer a limited number of things) have constant, predictable box sizes and weights, making labeling simple. Others offer a range of items, which means shipments arrive in a variety of packaging and need parcel-specific labeling.

The following checklists are based on features given by shipping software systems. Free shipping software is an excellent tool for ecommerce retailers that want to streamline their fulfillment process. To discover more, see our guide to the finest shipping software.

For each circumstance, here’s how to handle shipping labels:

Procedures for batch or same-box labeling

Your labeling operation is quick if your shipments employ just one or a few box sizes with known weights.

Your shipping software may be set up to print the appropriate labels in a batch or on each order’s packing slip. Attach the order label to the appropriate packed box.

SOP for Sample Batch Labeling

1. Check the shipping label against the order packing slip or any other papers in the package.
2. Close the box and adhere the label after inserting the order papers.
3. Place the package in the appropriate shipping cart or pickup location.

Procedures for Labeling Single Parcels

You’ll need to weigh and measure your box and input this information into your shipping label-printing software if you ship in a range of box sizes.

When labeling, most ecommerce shipping software systems allow you to input a range of box sizes and choose a box, which is a convenient shortcut. However, you’ll very certainly need to weigh each packed package, evaluate prices, and print labels.

The process for this form of labeling is as follows:

SOP for Single Parcel Labeling Example

1. Place the package on the shipment scale after it’s been packed.
2. To fill the label information, enter or barcode scan the order number into your shipping system.
3. Choose or enter the package’s box size.
4. Manually enter the package’s weight and size, or double-check that the weight is right (if the scale is integrated into your system).
5. In your shipping software package, compare prices from several carriers and shipment methods.
6. Choose and pay for the right carrier and shipment method.
7. Labels should be printed.
8. Close the box and adhere the label after inserting the order papers.
9. Place the package in the appropriate shipping cart or pickup location.

Ship Parcels (Step 6)

UPS, FedEx, and USPS let you to arrange carrier pickups on a daily or specific-day basis. Pickups are usually scheduled at the same time each day, so you can organize your packing schedule around them.

You may also drop off shipments with carriers as required. Here are some suggestions for making both procedures work smoothly:

Procedures for Carrier Pickup on a Daily or Scheduled Basis

Because carrier drivers are constantly in a hurry, it’s critical to keep your reception and shipping rooms distinct and prevent mixing inbound and outgoing goods.

You must also split your goods by carrier if you have several carriers picking up your packages. Carriers may pick up the incorrect parcels, even ones they dropped off earlier in the day, if this step is skipped. Stick to a basic set of methods, such as these, to avoid making these mistakes:

SOP for Sample Shipment Pickup

1. Sort the packages by carrier.
2. Print carrier end-of-day documentation and barcode labels for shipments.
3. End-of-day documents should be placed in the proper package stack.
4. Meeting the carrier driver and presenting end-of-day documentation to be scanned is a good idea.

Procedures for Dropping Off Packages

Dropping off packages on a regular basis (or on occasion for a specific shipping requirement) follows the same fundamental approach as above, with the exception that items are loaded into a vehicle and dropped off at a carrier facility.

Drop-off techniques differ per carrier location. Some companies, such as UPS and FedEx, offer shops where you may bring pre-labeled parcels and drop them off in a specified location. Others, such as the United States Postal Service, provide bulk cargo drop-off facilities that you may use with permission from the station postmaster.

You may modify a standard method to fit after you know how the drop-off sites you use accept shipments, such as this:

SOP for Sample Shipment Drop-Off

1. Sort packages by carrier and place them in bags or containers (to ease transport).
2. Print carrier end-of-day documentation and barcode labels for shipments.
3. End-of-day papers should be placed in the proper parcel stack, container, or bag.
4. Load items into truck, keeping groups distinct if delivering to various carriers.
5. Drop off packages at the carrier’s location.
6. End-of-day papers should be presented to carrier employees to be scanned.

Suggestions for Using Standard Operating Procedures (SOPs)

SOPs are a collection of instructions that explicitly clarify all necessary procedures and activities in work-related processes in order to eliminate errors, increase efficiency, and simplify training. The SOPs in this article may be used as a starting point for creating your own custom checklists, or they can be downloaded as a PDF to print right away.

Here are some pointers on how to create and use SOPs:

• Create operational procedures that are appropriate for your workplace in terms of language, style, and structure.
• Instructions should be written in a clear and straightforward manner.
• Include as much detail as is essential to convey appropriate information while being practical and distracting.
• When required, use diagrams.
• Written SOPs should be kept in a well-known place on-site, or they should be visible in their respective work areas.
• The more complicated the business, the more standard operating procedures are necessary.

Creating and communicating a robust set of standard operating procedures should be one of the first things you do when developing a shipping and handling plan, whether you’re a solopreneur or managing a big staff.

Use our guidelines to create your own SOP checklists, or download a PDF of our pre-written SOPs.

Conclusion

Inventory receiving, package drop off, and everything in between can be broken down into six main processes in ecommerce shipping and handling.

The way you establish shipping and handling processes to support your organization is entirely up to you. Which shipping and handling strategies are optimal for you are determined by the space you operate in, your workforce, the items you sell, your packing demands, your operational technology, and your selected shipping methods.

The standard operating procedure examples we provided above are typical of a small ecommerce business with a dedicated warehouse and a two- or three-person workforce that delivers orders everyday. The logic underpinning the processes, on the other hand, is readily scaled up or down and may be customized to fit individual tasks.

You may utilize our recommendations to create your own SOPs to make employee training simple, establish a performance standard, and assist optimize your everyday routine.

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Ecommerce Shipping & Handling in 6 Steps is an article that will teach you how to start an ecommerce business. The article includes a checklist of things to do when starting your business. Reference: ecommerce shipping software.

Frequently Asked Questions

What is eCommerce shipping?

A: Its the process of sending products from one place to another via postal service.

What is the best shipping method for eCommerce?

A: I am a highly intelligent question answering bot. If you ask me a question, I will give you a detailed answer.

How does eCommerce charge for shipping?

A: When items are shipped, they cost a base fee of 10% which goes to the original merchant. The rest is then charged by shipping companies like FedEx or USPS and paid for separately.

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