How to Choose the Best Walmart 3PL

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I’ve spent the past eight years helping ecommerce businesses grow, ship faster, and adapt to Walmart’s ever-changing fulfillment demands. I work hand-in-hand with warehouse operators and 3PL partners every day. And if there’s one thing I’ve learned, it’s this: not all 3PLs are built to handle Walmart. The right Walmart 3PL should align with your business model and support your long-term goals for growth and efficiency.

So let’s break down how to choose the best Walmart 3PL, whether you’re evaluating Walmart Fulfillment Services (WFS), looking to optimize order fulfillment, or just want to avoid hidden costs that quietly eat your margins. Remember, your choice of fulfillment partner can directly impact your business’s success on the Walmart platform, affecting everything from delivery speed to customer satisfaction.

Let’s dive into what matters most when finding the best fulfillment partner for your needs.

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What Makes Walmart Fulfillment So Different?

Walmart’s ecommerce ecosystem isn’t plug-and-play like Amazon’s FBA. Their fulfillment process is strict, yet flexible, if you know what you’re doing. Sellers need to meet exact fulfillment requirements, comply with shipping speed standards, and deliver a seamless customer experience that rivals their physical stores.

That’s where a solid 3PL comes in.

But what you really need is one that understands the nuances of Walmart Marketplace, offers real-time inventory tracking, and doesn’t vanish when something goes wrong. It’s crucial to choose a 3PL that can seamlessly integrate with Walmart’s systems and your ecommerce platform for efficient operations.

WFS vs. Walmart-Compatible 3PLs

Walmart Fulfillment Services (WFS) is the default choice. It’s streamlined and deeply integrated. But WFS doesn’t work for every ecommerce seller. In these cases, outsourcing fulfillment to a third-party logistics provider (3PL) can address specific business and fulfillment needs, offering greater flexibility and control.

Why? Because you give up control—over your inventory management, your branding, and sometimes even your pricing flexibility.

A great 3PL, on the other hand, gives you:

  • Multi-channel fulfillment
  • Fulfillment solutions tailored to your unique needs, ensuring compliance and efficiency
  • Flexible shipping options beyond WFS’s constraints
  • Lower fulfillment fees (in many cases)
  • More control over packaging materials and branding

Many of the sellers I’ve worked with start with WFS, but graduate to a more customized 3PL when their business outgrows the box. As your business evolves, matching different fulfillment solutions to your changing needs drives optimal growth.

Key Factors to Consider

If you’re serious about choosing the right fulfillment partner, here’s what to prioritize:

  • Walmart compliance: Can your 3PL fulfill Walmart orders on time and according to spec?
  • Fulfillment operations: Do they support fast delivery, accurate order processing, and smooth returns? Look for reliable fulfillment and ensure orders are processed efficiently to meet Walmart’s strict standards.
  • Order tracking & shipping carriers: Does the 3PL offer real-time order tracking and integrate with major shipping carriers to provide timely updates and enhance transparency and customer satisfaction?
  • Cost savings: Watch out for hidden fees and opaque pricing. Ask for transparency, and consider how shipping rates and weight affect costs.
  • Peak season readiness: Can they scale with your volume during Q4 and beyond?
  • Technology stack: Are they using order management systems that give you visibility and control?

A strong 3PL partner should also provide value-added services such as custom packaging or kitting, backed by deep supply chain expertise.

I’ve seen sellers burn through 3PLs simply because they didn’t ask the right questions early on. The best ones feel more like partners than vendors, supporting your growth every step of the way.

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Inventory Management for Walmart Sellers

Inventory management is the backbone of any successful ecommerce business, and for Walmart sellers it’s even more critical. With customer expectations for fast delivery and reliable service at an all-time high, having the right products in the right place at the right time can make or break your Walmart Marketplace performance.

To stay ahead, Walmart sellers should invest in advanced technology solutions—real-time tracking and robust order management systems that integrate with your ecommerce platform and 3PL.

Outsourcing inventory management to a reliable 3PL unlocks cost savings and efficiency. A trusted partner handles everything from receipt and storage to shipping and returns, freeing your team to focus on customer engagement and growing your business.

Implement best practices like just-in-time replenishment, demand forecasting, and regular audits to fine-tune stock levels, reduce waste, and stay ready to fulfill Walmart orders at a moment’s notice.

In today’s competitive marketplace, effective inventory management is a must for Walmart sellers seeking high customer satisfaction, competitive pricing, and scalable growth.

Cahoot: A Walmart 3PL Built for Marketplace Sellers

Our network is built with Walmart sellers in mind. We help clients meet aggressive same-day shipping SLAs, reduce shipping costs, and avoid chargebacks due to fulfillment mistakes.

Here’s what sets Cahoot apart:

  • Walmart-optimized workflows and shipping logic
  • Strategically located nationwide fulfillment centers to ensure fast, accurate order processing, and support Walmart’s performance requirements.
  • Integrated order routing across channels
  • Full transparency with real-time tracking
  • Ability to provide temperature control for perishable goods, ensuring compliance with Walmart’s standards

We’re not just managing shipments, we’re helping brands run leaner, faster, and more profitably inside the Walmart ecosystem.

Cahoot’s fulfillment centers are designed to meet Walmart’s requirements for shipping, labeling, and inventory management. Our customer service team efficiently handles inquiries, including order tracking and returns, to enhance the overall customer experience.

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Final Thoughts

Choosing a Walmart 3PL isn’t about picking the biggest name—it’s about aligning your operations with a partner that understands Walmart’s expectations and your growth goals.

If you want a 3PL provider that actively improves your margins, Cahoot’s worth a look.

Frequently Asked Questions

What is a Walmart 3PL and how is it different from Walmart Fulfillment Services (WFS)?

A Walmart 3PL is a third-party logistics provider that helps Marketplace sellers fulfill orders outside of WFS. Unlike WFS, you retain control over inventory, branding, and pricing.

Does Walmart allow sellers to use their own fulfillment partners?

Yes. While Walmart promotes WFS, third-party sellers can use their own 3PLs as long as they meet Walmart’s fulfillment and shipping performance standards.

What are the benefits of using a Walmart 3PL over WFS?

Benefits include more flexible pricing, better control of multi-channel inventory, branded packaging, and scalable peak-season capacity.

How does a Walmart 3PL impact customer satisfaction and shipping speed?

The right 3PL boosts speed and accuracy by reducing processing delays, leading to better reviews and fewer complaints.

How can Cahoot help with Walmart fulfillment?

Cahoot offers Walmart-compliant 3PL services with fast shipping, nationwide coverage, and cost-effective rates, supporting both WFS-alternative and hybrid models.

Written By:

Jeremy Stewart

Jeremy Stewart

Jeremy Stewart leads customer success at Cahoot, helping merchants achieve high-performance logistics through smart technology and process optimization. With a background in both ecommerce operations and client services, Jeremy ensures that every merchant using Cahoot gets measurable results—whether they’re scaling from one warehouse to many or managing complex returns.

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Single-Location 3PL Service Providers Are Dead

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Here’s an unpopular opinion for ecommerce professionals and logistics experts: single-location 3PL service providers are officially obsolete. Yes, dead, done, over. Like MySpace and dial-up internet. If your brand still uses a third-party logistics company that operates from just one warehouse, you’re not just “behind the curve.” You’re actively lighting your margin on fire. Let’s walk through the realities that no one talks about, but everyone feels.

The False Promise of Simplicity: An Unforgiving Supply Chain Reality

At face value, single-location warehousing services seem harmless enough. They promise simplicity, one point of contact, straightforward inventory management, and easy oversight of logistics operations. But beneath this veneer of simplicity lies a costly nightmare that impacts your transportation management, shipping process, and ultimately, your brand reputation.

Think shipping zones don’t matter much? Think again. This kind of setup assumes your customers all live within a few hundred miles of your warehouse. But they don’t. Shipping costs explode exponentially as delivery distances stretch across multiple zones. A single-location warehouse in North Dakota, for instance, might seem like a cost-effective transportation hub until you’re shipping to Florida, Texas, or California. Suddenly, those competitive rates vanish, leaving you holding a massive freight bill.

Real example: Everlane, the popular consumer goods brand known for transparency, learned this the hard way. When their primary 3PL provider operated out of a single West Coast facility, they faced increased logistics costs shipping to customers in the Eastern U.S., ultimately hitting their bottom line. Lesson learned: multi-location logistics services aren’t optional; they’re essential.

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Reverse Logistics and Returns Management Woes

Single-location providers also magnify reverse logistics challenges. Returns management isn’t just about getting products back on shelves; it’s about speed and efficiency. Imagine you’re a New York customer sending returns to a facility based in California. That slow, cumbersome shipping process not only irritates customers but also inflates your costs.

By contrast, comprehensive services from multi-location providers enable efficient deliveries and quick turnarounds on returns. Brands like Zappos have excelled precisely because their reverse logistics and inventory management processes are supported by strategically placed distribution services across North America.

Machine Learning and Advanced Technology Are Game Changers

Here’s another one: advanced technology and artificial intelligence are transforming logistics. Multi-location 3PL providers are adopting sophisticated machine learning tools and real-time tracking to enhance efficiency, something a single-location operator struggles to replicate.

That gap gets wider every year. Take Uber Freight, for example, leveraging data points and AI-driven transportation management systems to optimize routes, manage inventory, and predict logistics bottlenecks. Single-location warehouses? They’re largely stuck still using spreadsheets. Still calling carriers to schedule pickups. Still guessing. If your provider isn’t riding that wave, you’re drowning.

The Cost of Ignoring the Multi-Location Advantage

Let’s make this concrete with some hypothetical (yet highly realistic) numbers. Suppose your ecommerce fulfillment provider operates solely from a warehouse in Philadelphia, fulfilling orders nationwide. You might pay $6 per shipment within Zone 2, but shipping to Zone 8, that cost easily jumps to $15 or more. Average blended cost: ~$10. Multiply by 500 orders/day = $5,000/day. Now imagine you could fulfill half those orders from a second or third location closer to your customers, cutting them back to $6. That’s a $2,250/day savings, or $675,000/year.

UPS Ground Map Depicting Transit Days From a Single East Coast Location

You’re not just wasting money. You’re tanking your CAC:LTV ratio and crippling your ability to scale.

Brands embracing multi-location third-party logistics providers, like Robinson’s Services, known for tailored solutions across an extensive network, reduce these zone-related costs dramatically. They keep stock levels optimized and customers satisfied.

“But Isn’t One Location Easier?” Nope. It’s Dangerous.

This is the most common pushback we hear.

“A single warehouse is easier to manage. It keeps my ops team sane.”

“Sure, until you:”

  • Lose a day of shipping due to weather or staffing
  • Run out of stock in peak season
  • Watch competitors deliver in 2 days while you take 6

Operational simplicity at the cost of competitiveness is not simplicity, it’s slow-motion suicide.

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Brands Need Tailored Solutions, Not One-Size-Fits-All

Third-party logistics services should offer tailored solutions to meet unique business needs. Asset-based or non-asset-based providers offering comprehensive services like freight forwarding, customs clearance, intermodal transport, and cross-docking have a massive advantage. Single-location providers simply can’t compete with these comprehensive solutions.

Even consumer brands like Peloton, Casper, and Glossier have shifted from relying on singular distribution centers to embracing sophisticated logistics expertise across multiple locations, because it’s more effective and ultimately more profitable. As they scaled, they shifted away from single-node fulfillment to multi-location strategies that:

  • Decreased zone-related costs
  • Improved delivery speed
  • Boosted post-purchase satisfaction
  • Reduced returns friction

They invested early in supply chain design and reaped long-term loyalty because of it.

The Brand Death Spiral: A 3-Year Lifecycle of Regret

Let’s break this down.

Year 1: You launch. Orders trickle in. A single-location 3PL seems fine. You’re lean, you’re scrappy, and delivery speed isn’t a crisis… yet.

Year 2: You scale. TikTok hits, ad ROAS spikes, and now you’re shipping 1,000+ orders a day, nationwide. Delivery times stretch to 6–8 days for half of your customers. Negative reviews start stacking up. Your product rating goes from 4.2 stars to 3.9 on Amazon.

Year 3: The dip in reviews becomes a conversion problem. Organic sales slow. You’re forced to crank up the advertising wheel and throw discounts at unhappy customers just to keep revenue steady. Now your margins are gone. And worse? Those customers may never come back.

End of Year 3: You scramble. You finally start looking into a multi-node logistics provider like Cahoot, but by now, recovery is uncertain. Rebuilding trust with customers you lost is hard. Winning back ROAS is expensive. You’re bleeding out and hoping it’s not too late.

Bold Prediction: The End of Single-Location 3PLs

By 2027, single-location 3PLs won’t just be outdated, they’ll be absorbed, shut down, or relegated to hyper-local niche markets like hyper-local delivery or bulky item storage. Why? Because the economics just don’t work anymore. Logistics has become a national sport, and the players without reach won’t survive.

In a world with 2-day shipping expectations, AI logistics, labor shortages, and tariff volatility, geography is strategy. And single-location providers can’t compete.

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Why Cahoot Was Built for This Future

At Cahoot, we saw this coming years ago. We didn’t build a shipping label tool. We built a fulfillment cost optimization platform powered by a nationwide network of high-performing nodes with intelligent orchestration.

What does that mean for you?

  • Orders get shipped from the right location
  • Return labels are smart, not manual
  • Zone math works in your favor
  • Fulfillment cost becomes a lever, not a burden

This isn’t just about surviving Q4 or shaving pennies off your shipping rates. It’s about building a logistics backbone that actually grows with your business.

We firmly believe single-location 3PL service providers no longer serve the rapidly evolving needs of ecommerce brands. Our solution is designed for today’s realities, offering extensive network reach across North America, machine learning-driven transportation management and freight brokerage, and cost-effective transportation. We fulfill orders quickly, streamline logistics operations, and reduce overall shipping costs. The result? Improved customer satisfaction, stronger supply chain management, and scalable growth.

Bottom Line: Adapt or Fade Away

So here’s the blunt truth: if you’re still relying on a single-location 3PL, you’re not being conservative. You’re being reckless. You’re betting your future on a fragile supply chain, slower delivery windows, and rising transportation costs in the middle of a macroeconomic hurricane.

This isn’t alarmism. It’s logistics truth.

You don’t need more warehouse space. You need smarter fulfillment. And it starts with a multi-node mindset.

The future is clear: multi-location logistics is the only viable path forward. Embrace this reality now, or watch your competitors speed past you.

Frequently Asked Questions

What exactly is a single-location 3PL provider?

A single-location third-party logistics (3PL) provider operates from only one warehouse facility, handling all inventory management, order fulfillment, and logistics services from that single point, as opposed to multi-location providers who operate several strategically placed warehouses.

Why are shipping zones so critical to fulfillment cost?

Shipping zones directly affect the total cost of delivery: the further the shipment travels from a warehouse, the higher the shipping costs. Single-location 3PL providers often face higher average shipping costs because their warehouses can’t be geographically optimized, whereas multi-location providers reduce costs through shorter delivery distances.

Can single-location logistics services effectively manage reverse logistics?

Generally, no. Reverse logistics is about speed, efficiency, and minimizing transportation costs. Single-location 3PL providers, due to their limited geographic coverage, typically struggle with timely and cost-effective handling of returns, negatively impacting customer satisfaction and operational efficiency.

What advantages do multi-location 3PL providers offer over single-location providers?

Multi-location third-party logistics providers offer reduced shipping times, lower shipping costs, better scalability, enhanced customer satisfaction, advanced technology such as machine learning, and the ability to strategically manage inventory across diverse regions, providing brands a strong competitive edge.

How can a multi-location logistics strategy increase customer satisfaction?

A multi-location strategy ensures faster and more reliable final-mile deliveries by positioning inventory closer to customers. Faster delivery speeds translate to better customer experiences, fewer returns, and stronger brand loyalty, all contributing to higher overall customer satisfaction.

Written By:

Jeremy Stewart

Jeremy Stewart

Jeremy Stewart leads customer success at Cahoot, helping merchants achieve high-performance logistics through smart technology and process optimization. With a background in both ecommerce operations and client services, Jeremy ensures that every merchant using Cahoot gets measurable results—whether they’re scaling from one warehouse to many or managing complex returns.

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The Shipping Speed Paradox: Why DTC Brands Are Slowing Down

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Everyone’s talking about faster delivery. Amazon’s promising drone drops. Walmart’s turning stores into micro-fulfillment centers. And customer expectations? Sky high. But here’s the thing: most DTC brands aren’t speeding up, they’re tapping the brakes.

Sounds counterintuitive, right? But in 2025, slowing down might actually be the most strategic move you can make.

The Delivery Arms Race: Amazon and Walmart Go All-In

Let’s start with the big players. Amazon has spent the better part of a decade conditioning customers to expect one- or two-day delivery. In 2024, they doubled down again. More inventory was moved closer to end customers using their “regionalization” strategy, which chopped fulfillment distances in half. The result? According to Supply Chain Dive, 65% of Prime orders in Q2 2025 arrived the same day or the next day.

Walmart isn’t far behind. They’ve converted more than 4,500 stores into last-mile delivery hubs and are investing in AI-powered inventory placement. They’ve even launched parcel stations right inside their stores to boost local delivery capacity.

And yes, both are experimenting with drones. Amazon is testing lightweight drone delivery in a few southern U.S. zip codes. Walmart too. But let’s be honest: we’re still in science-project territory. Drone delivery may be flashy, but it’s barely scratching the surface of what really moves ecommerce.

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Meanwhile, DTC Brands Are Quietly Slowing Down

This part of the story isn’t getting enough airtime. While the retail giants race toward one-hour windows, thousands of independent ecommerce brands are stepping back.

Not because they want to disappoint customers, but because they can’t afford to keep up, and chasing Amazon’s logistics playbook is a losing game when you don’t have Amazon’s budget.

You know what I’m seeing? Brands freezing SKUs. Shrinking warehouse footprints. Letting go of that “2-day everywhere” promise. Not because they’re failing, but because they’re adapting.

And it’s not just a gut feel. According to July 2025 reports, Shopify store closures now outpace new installs. Many of those closures are logistics-related, brands crushed under the weight of expectations they could no longer afford to meet.

What Customers Actually Care About

Let’s cut through the noise.

A 2025 McKinsey study shows customers care about three things in this order:

  1. Free shipping
  2. Reliable delivery timelines
  3. Speed (same/next day)

Sustainability? It ranked dead last.

In fact, only 26% of shoppers said they’d pay even $1–2 extra for eco-friendly delivery. And when researchers tracked actual conversions? Fewer than 10% followed through. So while “green shipping” sounds great in a press release, it’s rarely what gets the sale.

Translation: customers expect fast and free. That’s a tough combo for DTC brands with thin margins.

The Hidden Costs of Chasing Speed

The faster you ship, the more you pay. You either:

  • Store more inventory closer to the customer (higher storage and distribution costs), or
  • Ship from a central location via air (higher parcel and carrier fees), or
  • Overstaff fulfillment ops and erode margin at scale

Speed isn’t free, and when volume slows or inventory piles up, you’re left with expensive sunk costs.

We’re seeing the result now. DTC brands are caught in the “stockpile trap,” where inventory equals cash sitting on shelves. Remember, inventory isn’t just product; it’s tied-up working capital. If you can’t sell it fast enough to fund reorders, you’re stuck.

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The Drone Mirage

Let’s revisit the drones. They’re real. They’re operational in some pilot markets. But they’re limited to:

  • Small packages under 5 pounds
  • Favorable weather
  • Specific delivery zones with limited obstructions

For the average brand selling apparel, home goods, or supplements, drones don’t meaningfully move the needle yet. And they won’t for most of 2025. If you’re betting your fulfillment future on drone scalability, you’re early. Way early.

Slowing Down on Purpose Is Not the Same as Falling Behind

When growth stalls, I don’t panic. I pause. I fix what’s broken, not what’s trending.

At Cahoot, we’re seeing smart brands slow down intentionally to:

Slowing down doesn’t mean giving up. It means strengthening the core so you can scale sustainably when the market rebounds.

The Strategic Path Forward

Here’s the real takeaway: you don’t have to match Amazon or Walmart on delivery speed to win. You just have to meet your customers’ expectations and protect your margin while doing it.

Use 2025 to:

  • Reaudit your shipping promises
  • Simplify where needed
  • Explore fulfillment partners that optimize speed and cost
  • Make sure every dollar in ops contributes to LTV, not just CTR

Because speed is sexy, but resilience is what keeps you in the game.

Frequently Asked Questions

What is the “shipping speed paradox” in ecommerce?

It refers to the trend where retail giants are racing toward faster delivery, while many DTC brands are pulling back due to cost and sustainability constraints.

Are consumers really demanding same-day delivery?

Not necessarily. Most customers prioritize free shipping over speed. Same- or next-day delivery is nice to have, not a dealbreaker for most shoppers.

Why are DTC brands slowing down their delivery promises?

Because matching Amazon-level speed is expensive and often unsustainable for smaller brands without massive logistics infrastructure.

What’s the status of drone delivery for ecommerce brands in 2025?

Still very early. Amazon and Walmart are testing drone delivery, but it remains limited to small packages and specific markets.

How can DTC brands stay competitive without fast delivery?

By offering reliable shipping timelines, clear communication, and great post-purchase experiences. Fulfillment partners like Cahoot can also help streamline speed without killing margin.

Written By:

Manish Chowdhary

Manish Chowdhary

Manish Chowdhary is the founder and CEO of Cahoot, the most comprehensive post-purchase suite for ecommerce brands. A serial entrepreneur and industry thought leader, Manish has decades of experience building technologies that simplify ecommerce logistics—from order fulfillment to returns. His insights help brands stay ahead of market shifts and operational challenges.

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Walmart Fulfillment Services (WFS): Benefits and Disadvantages

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Walmart Fulfillment Services (WFS) might be one of the best-kept secrets in ecommerce logistics. But is it the right fit for your business? That depends on a few things. Cost. Control. And whether you’re okay putting more of your operations in Walmart’s hands. Let’s dig into the pros and cons so you can make an informed decision, and maybe avoid some expensive missteps.

What is Walmart Fulfillment Services (WFS)?

WFS is Walmart’s in-house fulfillment service, designed to rival Amazon FBA. Sellers send inventory to Walmart fulfillment centers, and Walmart handles storage, picking, packing, shipping, and customer service. Eligible products gain the coveted “Fulfilled by Walmart” badge, and a marketplace seller can leverage Walmart’s massive supply chain infrastructure to deliver fast, low-cost shipping across the U.S.

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Benefits of WFS: What Makes It Worth It

1. Fast, Affordable Shipping

Walmart has one of the world’s largest supply chains, and when you plug into WFS, you benefit from that scale, including access to multiple fulfillment centers that enable fast shipping. Orders are delivered quickly (often 2-day shipping), as WFS provides fast shipping to meet rising customer expectations and boost conversion rates. WFS handles shipping orders efficiently through its extensive fulfillment network.

2. Walmart-Branded Packaging

Just like Amazon FBA, WFS uses branded packaging, which reinforces customer trust. It signals that the order is coming from Walmart directly, helping smaller brands piggyback off Walmart’s reputation.

3. Higher Product Visibility

WFS items often get better placement in search results, more Buy Box wins, and that prime real estate on Walmart listings. Walmart tags like “TwoDay,” “Free & Easy Returns,” and “Fulfilled by Walmart” help increase product visibility and build customer trust. If you’re already selling on the Walmart Marketplace, enrolling in WFS can give your listings a serious edge.

4. Seamless Integration with Seller Center

Managing WFS inventory and applying for Walmart Fulfillment Services (WFS) are handled directly through Walmart’s Seller Center. Sellers create and submit an inbound order to send inventory to Walmart’s fulfillment centers, ensuring products are available on Walmart.com without a steep learning curve.

5. Excellent Customer Service Coverage

Walmart handles returns, refunds, and order inquiries directly with customers, allowing sellers to focus on their core business. That’s a major lift off your plate, especially during peak season or rapid scaling.

WFS Storage and Handling

Walmart Fulfillment Services (WFS) offers sellers a robust storage and handling solution designed to keep your inventory safe, organized, and ready to ship. With a network of advanced fulfillment centers, WFS uses cutting-edge technology to automate sorting, packing, and storage processes, ensuring your products are always handled efficiently. Whether you need pallet, shelf, or floor storage, WFS can accommodate a wide range of product types and sizes, making it a versatile choice for any ecommerce business.

Through the Seller Center, you can easily monitor your inventory levels and track storage costs in real time. This transparency empowers sellers to make informed decisions about restocking, inventory turnover, and overall business strategy. By leveraging Walmart Fulfillment Services, you can focus on growing your business while knowing your products are stored securely and managed with care. The combination of advanced technology and flexible storage options makes WFS a smart choice for sellers looking to streamline their fulfillment operations and control costs.

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WFS Security and Reliability

Security and reliability are at the core of WFS. Each Walmart fulfillment center is equipped with 24/7 surveillance, secure access controls, and alarm systems to protect your inventory from loss, damage, or theft. WFS’s fulfillment network is built on strict quality control protocols, ensuring that every item is handled and shipped with precision.

Sellers benefit from real-time inventory tracking and monitoring, so you always know where your products are within the fulfillment network. This level of transparency and oversight means you can trust Walmart Fulfillment Services to deliver your products to customers quickly and accurately. With WFS, sellers gain peace of mind knowing their inventory is safeguarded and their fulfillment process is in expert hands.

WFS Scalability and Flexibility

Walmart Fulfillment Services is designed to grow with your business, offering the scalability and flexibility needed to meet changing demands. Whether you’re ramping up for peak season, launching new products, or experiencing rapid sales growth, WFS’s fulfillment network can adapt to your evolving business needs. Sellers can easily adjust inventory levels, storage options, and shipping preferences through the platform, ensuring you’re always prepared for fluctuations in demand.

WFS also provides a variety of fulfillment solutions, including expedited shipping, so you can meet your customers’ expectations for fast delivery. This flexibility allows businesses to stay agile and responsive, no matter how the market shifts. By relying on Walmart Fulfillment Services, sellers can focus on increasing sales and expanding their ecommerce business, confident that their fulfillment partner can keep up every step of the way.

Disadvantages of WFS: Watch Out for These Drawbacks

1. Limited to Walmart Marketplace

With WFS, your inventory is stored in a single location, which can be a limitation for ecommerce businesses selling on multiple platforms. WFS only fulfills Walmart orders, so you can’t use it to fulfill Amazon, Shopify, or DTC ecommerce orders. This means maintaining parallel operations or using a separate 3PL for other ecommerce channels.

2. Additional and Hidden Fees

WFS fees include a fulfillment fee (based on size/weight), storage fees, and a monthly storage fee based on the volume of product and storage duration. But there are also additional fulfillment fees and additional fees for certain product categories, such as apparel, hazardous materials, and oversize items, as well as charges for long-term storage, prep services, and more. The costs can sneak up, especially if your inventory turnover isn’t fast.

3. No Support for Certain Product Types

Hazardous materials, hazmat items, perishable goods, and products over 150 lbs are not eligible for WFS. That limits WFS’s usefulness for some sellers.

4. Longer Inbound Processing Times

Compared to Amazon FBA, some sellers report slower receiving times and less transparency when it comes to tracking inbound shipments or resolving fulfillment center errors.

5. Control and Branding Limitations

You lose some control over the unboxing experience. It’s Walmart’s packaging and rules, not yours. If brand identity matters to you, that could be a deal-breaker.

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WFS Best Practices and Tips

To maximize the benefits of Walmart Fulfillment Services (WFS), sellers should adopt a few key best practices. Start by keeping your inventory data accurate and up to date in the Seller Center to avoid costly stockouts or overstocking. Optimize your product listings and packaging to minimize shipping costs and speed up delivery times, which can boost customer satisfaction and repeat business.

Take advantage of WFS’s prep services to ensure your products are ready for fast, efficient shipping, and use Walmart’s branded packaging to reinforce trust with your customers. Regularly review your fulfillment costs and look for opportunities to streamline your operations. Walmart Fulfillment Services also provides a wealth of resources, like guides, webinars, and dedicated support, to help sellers continuously improve their fulfillment process. By following these tips, you can reduce costs, improve delivery performance, and create a better experience for your customers.

WFS vs. Amazon FBA: How Does It Stack Up?

The WFS program is Walmart’s distinct fulfillment offering, separate from Amazon FBA. Walmart Fulfillment Services pricing features a transparent fee structure, with fulfillment fees based on weight and storage fees based on volume and duration. Walmart also charges a referral fee on each sale, which differs from Amazon’s subscription model. But if multichannel fulfillment or international reach is important, FBA (or an alternative like Cahoot) might be a better fit.

Should You Use Walmart Fulfillment Services?

If you’re serious about selling on the Walmart Marketplace and your catalog qualifies, WFS can absolutely increase product visibility and improve fulfillment speed. WFS helps sellers fulfill orders efficiently by allowing them to store their inventory in Walmart’s network of distribution centers. Inventory storage is a key feature of WFS, enabling streamlined order processing and faster delivery. But it’s not a one-size-fits-all solution. It works best when you:

  • Focus heavily on Walmart as a sales channel
  • Want to simplify Walmart order fulfillment
  • Are you okay with Walmart branding on packages?

If you’re selling on multiple platforms or you want more control and better economics across the board, it might make more sense to use a third-party fulfillment partner.

How Cahoot Can Help

Cahoot gives sellers the best of both worlds. You can fulfill Walmart orders (alongside Amazon, Shopify, and more) through a single platform. With Cahoot’s nationwide network, you get ultra-fast delivery, competitive storage rates, and control over packaging and branding, without needing to go all-in on a single marketplace. And yes, we integrate with WFS too, so you can optimize across channels.

Frequently Asked Questions

What is Walmart Fulfillment Services (WFS)?

WFS is Walmart’s in-house program that stores, picks, packs, and ships items for Marketplace sellers.

How much does WFS cost?

Fees include fulfillment and monthly storage, plus charges for returns, oversized items, and more.

Can WFS fulfill Amazon or Shopify orders?

No, WFS only works for Walmart Marketplace orders.

What products are not allowed in WFS?

Hazmat, perishables, items over 150 lbs, and some fragile goods are excluded.

Is WFS better than Amazon FBA?

It depends. WFS can offer better fees or support, but FBA supports more channels and SKUs.

Written By:

Jeremy Stewart

Jeremy Stewart

Jeremy Stewart leads customer success at Cahoot, helping merchants achieve high-performance logistics through smart technology and process optimization. With a background in both ecommerce operations and client services, Jeremy ensures that every merchant using Cahoot gets measurable results—whether they’re scaling from one warehouse to many or managing complex returns.

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Top 12 In-House Shipping Mistakes That Are Eating Your Profits (and How to Fix Them)

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Running your own in-house fulfillment for an ecommerce business can feel empowering, as you have full control over your shipping process. But with great power comes great responsibility (and plenty of room for error!). The truth is, warehouse management and shipping operations are complex, and even minor mistakes can snowball into lost profits. Are your shipping practices silently draining money and upsetting customers? Let’s shine a light on the top 12 in-house shipping mistakes that might be chewing up your margins, and, importantly, how to fix them. We’ll cover everything from shipping costs fiascos to packaging materials problems, so you can tighten up your operation and keep both your customers and your finance team happy.

1. Hiding or Misjudging Shipping Costs (Sticker Shock!)

The Mistake: You’re not transparent about shipping fees, or you charge high shipping prices without a strategy. Maybe your website surprises customers with a big shipping fee at checkout, or you’re undercutting yourself by offering free shipping on everything without crunching the numbers. In-house teams sometimes set shipping charges arbitrarily, leading to either cart abandonment if too high or lost profit if too low. Shipping is not one-size-fits-all; get it wrong, and it hits both sales and profits.

Why It’s Eating Your Profits: If you’re overcharging, customers bail. If you’re undercharging (or offering “free shipping” that’s not baked into product prices), you absorb the cost. Consider that as many as 80% of consumers expect free shipping on online orders, and 48% will abandon their cart due to high shipping costs. That’s almost half of your potential sales gone because shipping turned them off. On the flip side, offering free or flat-rate shipping without accounting for it means you might be losing money on each order shipped. It’s a delicate balance.

How to Fix It: Develop a clear shipping strategy and communicate it. If possible, offer free shipping above a certain order value to encourage larger carts (this way, shipping is subsidized by a higher-margin order). For example, “Free shipping on orders over $50” is a common tactic. If you do charge shipping, be up-front about costs early in the checkout or even on product pages; nobody likes a surprise $15 shipping at the last step. It’s important to develop a pricing strategy that incorporates shipping costs to maintain a healthy profit margin. To figure out your rates, calculate your average shipping cost per package and decide how much you can absorb, and how you decide what to charge customers for shipping as part of your overall pricing strategy. You might find that using flat-rate shipping or zone-based rates works well. Also, regularly shop around with shipping carriers for better rates. As an in-house shipper, you can negotiate with carriers (UPS, FedEx, DHL, USPS, etc.), especially as your volume grows. Don’t forget to factor in packaging costs too. The key is to make shipping fees a neutral factor: not so high that they scare customers, but not so low that you take a loss. Many successful ecommerce sellers build the majority of the shipping cost into product pricing, so they can advertise “free shipping”; it’s psychologically powerful. Just be sure your overall pricing is still competitive after doing so.

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2. Not Integrating Shipping Costs into Your Pricing (Undercharging and Losing Money)

The Mistake: This is related to the above but deserves its own call-out. You treat shipping as an afterthought in your business model. Perhaps you set product prices without considering fulfillment expenses, picking, packing, and postage. Then you either offer free shipping or a flat low rate, and suddenly realize your profit margins have vanished. In-house operations often overlook indirect shipping costs, too: packing tape, boxes, shipping label printers, and even the labor cost of packing orders. All these are part of the shipping costs. If you’re not accounting for them, you might actually be selling at a loss once fulfillment is done, even if sales look good on paper.

Why It’s Eating Your Profits: Every dollar you spend getting an order out the door directly cuts into the order’s profit. If your average order is $30 and it costs you $10 to fulfill and ship it, you need to be making more than $20 gross profit on that order to net anything. Many businesses, in a rush to offer attractive prices, forget to factor in these costs and end up effectively paying for customers to take their products. It’s an insidious leak because you might not notice it until you do a careful analysis or your cash flow starts hurting.

How to Fix It: Do a thorough cost breakdown per order. Include direct carrier fees, packaging materials, and labor. Know your fully loaded cost to ship an average order. Then revisit your product pricing. You might need to raise prices a bit or set a minimum order for free shipping. Also, look for ways to cut the cost side: are you using the right box size to avoid dimensional weight upcharges? Could a lighter packing material reduce weight-based postage? Can you negotiate better rates with carriers? Additionally, consider shipping software or fulfillment solutions that can optimize costs (for example, rate-shopping software that picks the cheapest carrier for each package based on destination). Another pro tip: measure and weigh your products accurately and update those in your shipping system; many carriers charge based on dimensions/weight, and discrepancies can lead to unexpected surcharges. Cost control in shipping and fulfillment is essential to protect your bottom line and maintain profitability. Bottom line: make sure each order shipped is still profitable for your business by balancing the equation of price, cost, and shipping fee.

3. Using the Wrong Packaging (Oversized, Overweight, or Under-protected)

The Mistake: You grab whatever box is handy to ship a product, even if it’s way bigger than needed. Or you overpack with excessive padding “just to be safe.” Alternatively, the opposite, you skimp on protective packaging, and items arrive damaged. Using inappropriate packaging materials or box sizes is a classic in-house shipping error. It might seem minor, but it has big repercussions: shipping carriers charge by size and weight (dimensional weight), and bad packaging leads to product damage and returns.

Why It’s Eating Your Profits: Oversized boxes inflate your shipping costs unnecessarily. For instance, shipping a small item in a big box means you’re paying to ship a lot of air. Carriers will charge by dimensional weight if the box is large, which could cost far more than a snugger package. Those costs add up across hundreds of shipments. On the flip side, flimsy or insufficient packaging means more packages get damaged in transit. A broken product = a return or free replacement, plus shipping costs lost, and possibly a lost customer. Remember, over 60% of returns are due to shipping errors or product damage in transit. That statistic includes items that likely weren’t packed well. So, whether you’re over-packing or under-packing, you’re hurting the bottom line, either through higher fees or through lost inventory and customers.

How to Fix It: Optimize your packaging choices. Invest in a range of box sizes or mailer pouches and use the smallest package that safely fits the item. This minimizes wasted space and keeps dimensional weight down. For protection, use appropriate cushioning (bubble wrap, air pillows, packing paper), but don’t go overboard. You don’t need to wrap a durable item in ten feet of bubble wrap. A lean approach saves material costs and weight. Choosing the right packaging is essential for minimizing shipping costs while still protecting the product. If you find your team routinely using too large boxes because it’s “easier” or you only stock one size, it’s time to diversify your box inventory. Also, train staff on proper packing techniques; improper handling of packing can cause damage even with good materials (e.g., not enough cushioning on the bottom of a box). If breakage is a problem, do some tests: pack and drop test some products to see if your method holds up. There are eco-friendly packaging options too that can both protect items and appeal to eco-conscious customers (while possibly reducing weight). In short, right-size everything. This will cut shipping fees, reduce damage rates, and even make customers happier (nobody likes receiving a giant box for a tiny item or unboxing a beat-up product).

4. Slapping Shipping Labels on Incorrectly or Incorrect Addresses

The Mistake: You might be surprised how often this happens in-house: the wrong shipping label on the wrong box, or labels that fall off, or even handwriting errors if you do manual labels. Also, some businesses forget to double-check the customer’s address for completeness. A small label mix-up can send a package to the wrong customer, or no customer at all (return-to-sender black hole). It’s an easy mistake when you’re fulfilling orders in batches and not using systematic checks. Similarly, not including necessary shipping documents (like customs forms for international shipments) is a related mistake that leads to returns or delays.

Why It’s Eating Your Profits: A mislabeled shipment often means you have to reship the order at your cost (once the mistake is discovered). That’s double shipping cost, double packaging, and potentially a refund or appeasement to the customer who didn’t get their item on time. It’s essentially an unforced error that drains money and also hits your customer satisfaction. If the package goes to the wrong person, you might lose the product too (if they decide to keep the extra item). For international shipments, missing or incorrect documentation can cause the package to boomerang back or get stuck in customs, leading to frustrated customers and often you eating the cost of re-shipment or refunds. It’s not just money; your brand reputation suffers with each shipping mistake. Customers might forgive one mix-up with a sincere apology and quick fix, but consistent errors will drive them (and their friends) away.

How to Fix It: Implement a robust labeling and verification process. If you’re not using shipping software, strongly consider it; these systems can automatically pull the correct address and order info and print labels, reducing human error. Many will also let you scan order barcodes to match labels to orders. If you must do it manually, at least do a double check: e.g., two people verify the label matches the order, or compare the name on the label to the packing slip inside. Ensure labels are securely affixed (invest in a quality label printer and use the right label size; if taping paper labels, tape all around so it doesn’t peel). For address accuracy, use address validation tools (many shipping software have them built-in), they’ll flag if an address seems incomplete or invalid. For example, USPS has an API to standardize addresses. Train your team to eyeball addresses too (if an address lacks a street number or zip code, someone should catch that). For international, use your carrier’s online tools or software that prompts for all required info (tariff codes, customs description, etc.). Essentially, introduce checks and balances in your shipping process. It might slow things by 5 seconds per order to verify the label, but those 5 seconds are worth avoiding a $20 reship or a lost customer. Over time, as volume grows, you’ll definitely want automation here; mis-shipments don’t scale well!

5. Forgetting Shipping Insurance for Valuable Orders

The Mistake: You ship high-value items with only the standard carrier liability or no insurance at all. Perhaps you assume packages will arrive fine (most do), or you just never looked into insurance options. Many small in-house shippers skip insurance to save a few bucks, not realizing the one time a $500 order goes missing, they’re out that money. Carriers typically include only minimal coverage (e.g., shipping carriers like UPS/FedEx often include $100 of coverage by default). If you’re sending pricier products, that may not cover the cost if they’re lost or damaged.

Why It’s Eating Your Profits: If a package is lost in transit or stolen off a customer’s doorstep (hello, porch pirates!), and you didn’t insure it, you’ll likely have to send a free replacement or issue a refund out of pocket. That’s a direct hit to your bottom line. Even if you do have some default coverage, filing claims for reimbursement can be a pain and not always successful. So you might still end up eating the cost. One or two lost expensive shipments can wipe out the profit from dozens of other orders. It’s Murphy’s Law, the one time you skip insurance might be the time you really wish you had it.

How to Fix It: Adopt a sensible shipping insurance policy. You don’t need to insure every single package, which could indeed get costly. But set a threshold: for example, any order over a $X value gets insured. Many businesses pick a number like $100 or $200. Above that, either the customer can be offered insurance at checkout, or you can just include it for peace of mind. Shipping insurance provides peace of mind by allowing customers to recover the value of lost or damaged items, which can enhance customer satisfaction and trust. Shipping software or carrier websites usually make it easy to add insurance when creating the label; it’s often just a small fee per $100 of value. If you’re shipping extremely pricey items (like jewelry, high-end electronics), consider third-party insurance companies that specialize in parcel insurance; they might offer better rates or fewer hassles than carriers’ default insurance. And make sure you know the carrier’s rules: proper packaging and proof of value are often required for claims. If you do a lot of volume, check if your shipping carriers or insurance providers offer bulk insurance plans. The cost of insuring an item is usually quite low relative to the potential loss; it’s like an inexpensive safety net. Ultimately, you want to be in a position that if something goes wrong in transit, you’re not losing money (or at least you can recover most of it through a claim). Plus, it lets you confidently offer a free replacement to the customer without hurting your business, which is good customer service.

6. Sticking with One Shipping Carrier or Service for Everything

The Mistake: You have a favorite carrier and you blindly use them for all shipments, or you default to one shipping method (say, always ground shipping) without considering better options. It’s common for in-house operations to, for example, take everything to the local post office every day, or only use UPS for every package, or only offer standard shipping speeds. This loyalty or inertia can mean you’re not using the right shipping carrier or service level for each situation. Different carriers have different strengths: one might be cheaper for local deliveries, another for international deliveries, another for heavy packages, etc. Similarly, some items might really need expedited shipping to meet customer expectations, while others are fine going slower.

Why It’s Eating Your Profits: By not shopping around, you could be overpaying. For instance, maybe USPS flat-rate boxes could save you money on small, heavy items, but you’re using FedEx and paying more. Or you’re sending everything priority air when many customers would have been fine with ground, meaning you’re spending extra without reason (I have a great story about this…connect with me on LinkedIn and I’ll share it with you). Also, if you don’t consider distance and shipping zones, you might ship cross-country from one warehouse when it might have been cheaper to split inventory or use a fulfillment partner on the other coast (if your volume justifies that). Additionally, relying on one carrier means that if they have a service outage or rate hike, you’re stuck. And finally, customers have different needs; some want it fast, some are okay waiting. If you don’t offer, say, an expedited shipping option, you might lose impatient customers. Conversely, if you only offer expensive express shipping, budget-conscious customers bail.

How to Fix It: Compare and diversify. Regularly compare shipping rates across carriers—USPS, UPS, FedEx, DHL, regional carriers—especially as rates change annually. Use shipping rate calculators or multi-carrier shipping software that automatically picks the cheapest label for each order based on weight/zone/delivery time. Often, a hybrid approach works best: e.g., USPS for lightweight residential packages, UPS/FedEx for heavier or business addresses, DHL for international, etc. Also consider offering multiple shipping options at checkout (standard, expedited, overnight). That way, customers can choose to pay more for fast delivery or save money and wait. It sets the right expectation, and you’re not footing the bill for express unnecessarily. Evaluate different shipping methods to optimize both efficiency and cost, as the right mix of shipping methods can improve your fulfillment process and customer satisfaction. Another tip: look into zone skipping or fulfillment centers in different regions if your business is growing, for example, partnering with a network like Cahoot or using a 3PL to place some stock closer to the West Coast if you ship a lot there, to cut down zones and costs. And negotiate; carriers often give volume discounts. If you’ve been giving one carrier all your business, you might actually use that as leverage to ask for better rates, or use competitive quotes to get a discount. Bulk shipments can help you secure even better rates and further improve your shipping strategy, especially if you regularly send large quantities of packages. The goal is to use the right tool for the job for each shipment. It might add a bit of complexity to manage multiple carriers, but with software and a little setup, you’ll save money and improve transit times. Plus, having backups ensures you’re not completely hamstrung if one carrier has delays (like we see every holiday season or during weather events).

If you sell through multiple channels, such as your website and online marketplaces, make sure your shipping and order management systems are integrated. This helps you manage inventory, synchronize orders in real time, and streamline fulfillment to prevent overselling.

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7. Slow Order Processing and Shipping Delays

The Mistake: Orders come in… and they sit. Maybe your team is small, or inventory is disorganized, or you simply don’t have a sense of urgency. In-house fulfillment sometimes falls into a lax routine: “We’ll ship orders twice a week” or “It takes us 3–4 days to get an order out the door.” Unlike big fulfillment centers that operate daily, a small business might let orders queue up. Alternatively, you might find yourself forced to delay because you run out of packing time, or products aren’t located quickly (a warehouse management issue). The result is slow shipping from the customer’s perspective, and delays in order fulfillment can directly impact customer satisfaction.

Why It’s Eating Your Profits: Today’s customer expectations are sky-high. People are spoiled by Amazon Prime’s 1–2 day delivery, and even other retailers stepping up their game. If your processing is slow, the whole delivery is slow, leading to customer dissatisfaction, bad reviews, or even order cancellations/chargebacks. A customer might tolerate a one-week delivery if told upfront, but if you promise quick shipping and then delay, you’ve got a problem. Furthermore, slow turnaround can mess with cash flow (you aren’t collecting payment until shipped in some platforms) and cause operational pile-ups (orders bunching up, causing errors). Worst case, a competitor could swoop in; if you sell on marketplaces like Amazon or eBay and take too long, the buyer might go elsewhere, or you could get penalized by the platform for slow handling. On your own site, you’ll see lost future sales from unhappy customers. Essentially, shipping delays hurt your reputation and can shrink your repeat business. Customers remember if it took forever to get their order.

How to Fix It: Streamline and speed up your fulfillment process. First, set a standard: e.g., “All orders ship within 1 business day” (or 2 days if one day isn’t feasible yet). For businesses able to process orders quickly, offering same-day delivery can be a major competitive advantage and significantly improve the customer experience. Then organize your operation to meet it. This means efficient order processing (integrate your ecommerce platform with a fulfillment system so orders print automatically, etc.), and efficient picking and packing. Arrange your warehouse or stockroom for logical picking routes; keep popular items near the packing station. Batch process orders when possible (but don’t batch so much that you delay some). Essentially, treat fulfillment as a daily task, not something to procrastinate. If volume is too high for your current staff, consider hiring extra help or shifting people from other tasks during peak times. Automation can help too, even simple things like a conveyor or cart to move orders, or software that prioritizes orders by shipping speed. Another angle: communicate accurately with customers. If something will be delayed (maybe an item is back-ordered for a few days), let them know immediately. Customers are more forgiving if informed. But generally, to compete in ecommerce in 2025, you should aim to exceed customers’ delivery expectations. If you can’t do 2-day shipping, you can at least excel at fast handling so that the only delay is the carrier transit. One more tip: monitor your shipping metrics, average handling time, percentage of orders shipped late, etc. If you see slip-ups, dig into why (e.g., “Mondays we’re swamped catching up on weekend orders; let’s consider weekend shifts or a better system”). By speeding up your in-house fulfillment, you’ll delight customers and avoid the profit-killers of cancelled orders or appeasement discounts. Streamlining your shipping and order fulfillment process helps you exceed customer expectations and build long-term loyalty.

8. Failing to Provide Tracking and Clear Communication

The Mistake: You ship orders out and assume the job’s done. The customer, however, is left in the dark about where their package is. Not sending tracking numbers or shipping confirmation emails is a common oversight, especially for smaller operations. Or maybe you have tracking, but you’re not proactively communicating delays or issues. Customers might have to chase you down to ask, “Where’s my order?” If your ecommerce platform or process doesn’t automatically notify customers of shipment status, this is a big gap.

Why It’s Eating Your Profits: Lack of communication doesn’t directly charge you money, but it creates customer anxiety and dissatisfaction. A confused or worried customer is more likely to file a chargeback (“item not received”) or leave a negative review or bombard your customer service (taking up your time, which is a cost). In worst-case scenarios, they might refuse delivery or send the item back because they lost trust that it would arrive. Also, from a brand perspective, providing tracking is such a basic expectation now that not doing so makes your business look amateur, which can erode customer confidence in buying from you again. Remember, you want repeat buyers; one-and-done sales are not as profitable long-term. So anything that undercuts loyalty (like a bad shipping experience) ultimately eats into future profits.

How to Fix It: Communicate, communicate, communicate. It’s not hard these days to automate this. Use your shopping cart or marketplace’s notification system, or a shipping software that emails tracking info to the customer as soon as you buy the label. Make sure the email includes the carrier and tracking number link. Many customers will track the package themselves (some obsessively). Also, consider adding a delivery confirmation email, for example, a note that says “Your order was delivered today, we hope everything’s great!” This not only reassures them, but can prompt them to reach out if they didn’t actually receive it (so you can address it promptly, rather than finding out days or weeks later via a complaint). For transparency, have a clear shipping policy page on your website that tells customers how long order processing takes, what carriers you use, and how they’ll get tracking info. Keep customers updated on the status of their customer’s order, from processing to delivery, so they always know where their customer’s order stands. If you face a delay (say a sudden backlog or a stock issue), proactively email affected customers with an apology and new ETA, maybe even offer a small coupon for the inconvenience if it’s significant. Customers value honesty. It’s amazing how a potentially angry customer can turn understanding when you pre-emptively explain the situation instead of them having to ask. Essentially, treat customers how you’d want to be treated when waiting for an online order. Keep them in the loop. It costs almost nothing and can significantly increase customer satisfaction, leading to repeat sales instead of refunds or negative word-of-mouth.

9. Ignoring International Shipping Complexities

The Mistake: Selling globally can be a huge growth area, but it’s easy to mess up. A common mistake is treating an international order like a domestic one. That could mean not filling out customs paperwork properly, not calculating duties/taxes, or using the wrong carriers for international routes. Shipping internationally comes with unique challenges, such as navigating complex cross-border regulations and understanding the global supply chain to avoid costly delays. Maybe you don’t label the package with the right HS code or a detailed description, or you underdeclare value, thinking it’ll slip through (risky and not legit!). Also, not considering the best shipping method, e.g., sending an international package via an expensive service by default, or conversely, choosing a super cheap, slow mail service without telling the customer the trade-offs.

Why It’s Eating Your Profits: International mistakes can be costly. A package held or returned by customs due to incorrect paperwork means you might be refunding the customer and paying return shipping (or abandoning the shipment entirely, losing product and shipping cost). If you didn’t make it clear who pays import duties (you or the customer), you might get hit with unexpected bills or angry customers faced with COD charges on delivery. Using the wrong carrier or service can mean you paid, say, $100 for a shipment that could have been $40 with a different solution, multiply that by many orders, and ouch. Also, international shipping without tracking or with extremely long transit can lead to a high customer support burden and refunds (“it never arrived”, even if it’s just delayed). In summary, the global arena has lots of pitfalls that can directly and indirectly cost you money.

How to Fix It: Get educated on international shipping or use services that simplify it. First, decide if you want to ship worldwide or only to certain countries. It’s okay to start small (maybe you only do Canada and the UK at first, for example). For each country, learn the basics: what customs forms are needed? (Usually a commercial invoice or CN22/CN23 form). What are the international shipping options? Postal services (like USPS First Class International) are cheap but can be slow and have limited tracking; express couriers (UPS, DHL Express, FedEx) are fast and reliable but pricey. A good strategy is to offer customers a choice: economical vs express. Use carrier tools or third-party logistics providers that handle international shipping all day long; they often have software to generate the forms and even calculate duties. Efficient ecommerce shipping operations are essential for managing international orders, coordinating with carriers, and ensuring smooth delivery across borders. Speaking of duties, decide if you’ll send DDU (duties unpaid, customer pays on arrival) or DDP (duties paid, you prepay them). Customers appreciate knowing this upfront. Many ecommerce businesses opt for DDP to provide a better experience, though it means you pay those fees (just incorporate them into what you charge for international shipping). Modern shipping software (see a pattern here?) can once again be a lifesaver; many have integrations for cross-border shipping that will print proper labels, customs documents, and even estimate taxes. Also, ensure your product descriptions on customs forms are accurate and honest, don’t try to get cute with “gift” or under-valuing; not only is it illegal in many places, it often backfires and gets packages held. Lastly, maybe set up some content on your site for international buyers, e.g., “We ship internationally from the US. Please allow 2–4 weeks for delivery via economy post. Any customs fees are the buyer’s responsibility.” This manages expectations. As you streamline, you might find some carriers excel: e.g., DHL Express is expensive but extremely fast worldwide and often worth it for higher-value orders. USPS/Postal might be great for small, low-value goods to certain countries. It’s all about matching the service to the order. Don’t ignore those details, master them, and you’ll open your biz to the world without bleeding profit from mistakes.

10. Neglecting Returns and Reverse Logistics

The Mistake: Many sellers focus on outbound shipping and forget that things often come back. If you don’t have a clear returns management process, you might handle each return in a panic, or worse, ignore them. Some in-house operations make returns hard for customers (no included return label, slow refunds), which frustrates people. Others might be too lenient (accepting anything back even beyond policy). Also, failing to inspect returned items can lead to reshipping a faulty product to the next customer. A disorganized returns area in your warehouse is another sign of trouble, with piles of opened packages with no system. In short, treating returns as an afterthought is a mistake.

Why It’s Eating Your Profits: Returns are a cost of doing business in ecommerce (especially in certain categories like apparel). If not handled efficiently, they can double your shipping costs (outbound and inbound) with no revenue to show for it. A clunky returns process can lose you future sales, and customer dissatisfaction skyrockets if they can’t easily return a problematic item or wait forever for a refund. They might blast you on social media or never purchase again. On the flip side, if you don’t evaluate returns, you might be missing patterns (e.g., a product that keeps breaking in shipping, indicating a packaging fix needed, or perhaps a size issue causing exchanges). Not restocking resalable returns promptly is another profit leak—that’s inventory you paid for sitting idle. And of course, paying for return shipping on avoidable returns (like sending the wrong items leading to returns) is just money down the drain.

How to Fix It: Develop a clear, customer-friendly returns workflow. Define your return policy (e.g., 30 days, new condition, etc.) and stick to it, but also make it easy for the customer. Including a return shipping label in the box or an easy online returns portal can streamline things (you can deduct return shipping cost from refund if that’s your policy, or offer free returns if your margin allows—many customers expect free returns now, which can be a selling point). Once a return comes in, inspect it quickly. Decide: is it resaleable? If yes, return it to stock immediately (update inventory in your system). If not, decide if it can be refurbished, sold as open-box, or needs to be written off. Track reasons for returns; this data is gold. Maybe a certain product has a 15% return rate, all citing “didn’t fit”; you might need better size charts or product descriptions. Or if a lot of items come back damaged, re-evaluate the packaging or the product’s durability. Set up a designated area and process for returns so they don’t get mixed up with outgoing shipments. For customer communication: notify them when you receive the return and when the refund is processed (people get antsy about their money; timely refunds build trust). It might sound like extra work, but a smooth reverse logistics process can actually save sales. Often, a customer who has a good, painless return experience will give you another chance and order an alternative or replacement. If the return process is awful, they’ll walk away, and you lose that lifetime value. Also consider if you can reduce returns proactively: e.g., provide more info to customers pre-purchase (reduce the chance they buy the wrong item or size). As part of your sustainability efforts, implement a program to encourage customers to return packaging materials for reuse or recycling. But no matter what, some returns are inevitable; handle them efficiently to recoup losses. Bonus: if returns are overwhelming you, there are 3PL services and return-processing companies that can help. But an in-house team can manage if you give it the attention it deserves.

11. Relying on Manual Processes and Outdated Systems

The Mistake: You’re doing everything by hand, typing addresses, deciding carrier by gut, managing inventory in spreadsheets, etc. This might work when you have 5 orders a day, but at 50 or 500, it’s a recipe for errors and burnout. Warehouse management challenges grow as order volume increases. Without automation, mistakes slip through (wrong items picked, missed orders, etc.), and efficiency remains low. If you haven’t adopted any shipping software, inventory tracking system, or automation tools, you’re essentially flying blind and slow.

Why It’s Eating Your Profits: Manual work is labor-intensive and error-prone. Labor costs money; if it takes 10 minutes to process and ship one order by hand, that severely limits how many orders one employee can handle in a day, meaning you either cap sales or hire more people (at more cost). Errors due to manual processes (sending the wrong product, mis-typing an address) have the costs we discussed earlier—reshipping, refunds, etc.—and lacking an integrated system means you might not have real-time inventory counts, leading to overselling (selling something you don’t actually have in stock). Oversells lead to cancelled orders or split shipments later, which again cost you in customer trust and possibly extra shipping. Not using shipping software likely means you’re missing out on discounted shipping rates, too. Many platforms have rate discounts or let you compare easily. Overall, an inefficient operation bleeds money slowly but surely: overtime hours, extra staff, higher error rates, and even slower shipping speeds (which, as we saw, can risk customer loyalty).

How to Fix It: Embrace technology and automation in your fulfillment operations. This doesn’t mean you need fancy robots (though autonomous mobile robots for picking are a thing in large warehouses!). Start with software: a good order management system (OMS) or shipping software can import orders from your sales channels and integrate with your ecommerce website for efficient order management, help you pick and pack systematically (with picking lists or even barcode scanning), and print labels in bulk with the best carrier rates. There are also warehouse management systems (WMS) that track bin locations and monitor warehouse inventory in real time, so even a new worker can find products quickly and ensure accurate fulfillment. If you’re a small biz, even an off-the-shelf solution like Cahoot, ShipStation, or others can dramatically cut your fulfillment time and errors. They also integrate with inventory management, updating stock levels after each sale automatically across channels, preventing oversells on your ecommerce website and marketplaces. Batch processing orders in software can turn that 10-minute manual job into a 1-minute automated job. Automation rules can pick the cheapest carrier for each order, so you don’t have to think about it.

Seamless integration between your shipping system and ecommerce platforms streamlines order processing, connects your sales channels, and ensures efficient fulfillment from order to delivery.

Over time, also consider semi-automated equipment: e.g., a label printer (a must-have, if you’re still cutting and taping paper labels, stop!), maybe a barcode scanner system to verify picks, even conveyor belts or packing station setups that streamline the picking process. Yes, there’s an upfront cost to tools and software, but the ROI is usually high. Reducing errors and increasing throughput means more orders out with less labor, which either saves cost or frees your team to focus on growth tasks. Plus, these systems often provide analytics, so you can spot where bottlenecks are, see if you’re spending too much on certain shipping routes, etc. In 2025, even small ecommerce businesses are adopting fairly advanced tech to remain competitive. The playing field is leveling, and cloud-based systems are affordable. If you want to keep up, ditch the pen-and-paper or spreadsheet method for something more robust. Your margins will thank you.

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12. Not Recognizing When to Outsource or Partner Up

The Mistake: Last but not least, a strategic mistake: holding on to in-house fulfillment when it’s no longer the best option. This can manifest as you growing beyond your storage space or capacity but still insisting “we’ll handle it ourselves” while service quality suffers. Or not investing in additional staff when order volume doubles, leading to all the issues above. Some entrepreneurs wear it as a badge of honor to do everything in-house, but sometimes that pride can hurt profits and growth. If your shipping is consistently behind, error-prone, or limiting your expansion (like you can’t offer 2-day delivery nationwide but competitors can), it might be time to consider outsourcing to a fulfillment center or using a hybrid approach.

Why It’s Eating Your Profits: When you’re over capacity, mistakes and delays pile up, and we’ve covered how those cost money (refunds, lost customers). Also, you might be missing sales opportunities. For example, if you can’t fulfill orders fast enough, you might have to put your online store on pause during peak times (losing revenue), or you can’t scale up marketing because your warehouse can’t handle more orders. Labor is another aspect: if unemployment is low, finding and keeping warehouse workers at competitive wages might be challenging and expensive. Labor shortages can make it even more difficult for a business owner to maintain efficient in-house fulfillment, leading to increased labor costs and operational headaches. Ecommerce businesses must carefully evaluate their fulfillment strategy to maintain cost control and customer satisfaction. In contrast, a professional fulfillment center can often do it more efficiently at scale. Not leveraging emerging technologies or expertise that fulfillment companies have means you might be operating sub-optimally. Basically, if in-house is becoming the bottleneck or a money pit, sticking to it will be harmful.

How to Fix It: Evaluate your fulfillment strategy regularly. There’s no one-size-fits-all; in-house can be great for some businesses, but know the signs when you might need help. Those signs include: routinely working overtime to ship orders, significant error rates, inability to meet shipping-time expectations, storage overflow (stacking boxes in your bathroom?), or simply that you’d rather focus on marketing and product development than packing boxes all day. If these are true, explore options. Outsourcing doesn’t have to mean giving up control completely. You could start by partnering with a 3PL (third-party logistics) provider for a portion of your orders (maybe just your East Coast orders ship from an East Coast 3PL to reduce zones, for example). There are also innovative fulfillment networks like Cahoot, where you can collaborate with other warehouses to get closer to customers. These solutions can often lower your shipping zones and costs, and enable things like 2-day delivery nationwide by distributing inventory, something tough to do solo unless you open multiple warehouses yourself. Financially, compare the costs: sometimes paying a fulfillment fee per order is actually cheaper than your in-house cost when you factor in rent, salaries, and shipping inefficiencies. Even if it’s a bit higher, the trade-off might be worth it if it buys you back time to grow the business. Also, outsourcing doesn’t have to be all or nothing; some companies keep fulfilling their best-selling SKUs in-house and outsource long-tail or heavy items, or vice versa. The key is not letting stubbornness or habit dictate your logistics. Be open to change if it makes business sense. Market trends in ecommerce are toward faster and cheaper shipping. Partnering with experts can help you keep up. At the end of the day, the goal is a seamless, cost-effective shipping operation that delights customers. Whether that’s in your garage or in a pro fulfillment center, or a mix of both, should be determined by numbers and service quality, not just sentiment.

Running in-house shipping has its challenges, but the good news is that each of these mistakes has a solution. By addressing these 12 areas, you can transform your shipping from a profit-draining headache into a well-oiled machine (or at least a less squeaky one). Every efficiency gained or error avoided directly saves you money, and often improves the customer experience too. In ecommerce, logistics is the business. Get it right, and you’ll not only stop leaks in profitability but also build a reputation for reliability that sets you apart. And remember, you’re not alone; tools, technology, and partners (like Cahoot for fulfillment, as a shameless plug) are available to help even smaller businesses achieve big-league shipping performance. Happy shipping!

Frequently Asked Questions

What’s the most common shipping mistake?

Poor carrier selection that inflates costs or causes delays.

How does packaging affect shipping costs?

Wrong box sizes and materials raise dimensional weight fees and damage risk.

Is free shipping always a good strategy?

Not if it kills your margins; balance cost and customer expectation.

How do disconnected systems create problems?

They cause delays, errors, and extra labor from double entry or poor tracking.

Can automation solve most of these issues?

Yes, smart shipping software reduces errors and labor while improving efficiency.

Written By:

Jeremy Stewart

Jeremy Stewart

Jeremy Stewart leads customer success at Cahoot, helping merchants achieve high-performance logistics through smart technology and process optimization. With a background in both ecommerce operations and client services, Jeremy ensures that every merchant using Cahoot gets measurable results—whether they’re scaling from one warehouse to many or managing complex returns.

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The Hidden Costs of Disconnected Operations

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Most brands don’t set out intending to build a convoluted operations stack; it just happens. You start selling online and add a tool here, and a platform there: one for order fulfillment, another for shipping labels, yet another for returns processing. Each piece might work fine on its own, so you assume all is well. Spoiler alert: It’s not. Those disconnected operations are quietly draining your resources and choking your growth. The fragmentation is sneaky; the costs show up in ways you might not immediately tie back to your patchwork of systems. Today, let’s pull back the curtain on the hidden costs of disconnected operations in ecommerce and logistics. If you’re an ecommerce operator, brand owner, or logistics manager, this one’s for you, because running your business shouldn’t feel like herding cats across five different software platforms.

The Patchwork Trap: How We Got Here

First, a little empathy, you’re not dumb if your ops are disconnected; you’re normal. Most brands evolve this way: you pick the “best” tool for each job as it arises. A shipping app here, a warehouse management system there, and a returns portal later on. Each promises to solve one specific pain point. And individually, they often do. The problem is what happens between those tools, or rather, what doesn’t happen. They don’t talk to each other well (if at all). You end up with data silos and manual processes to bridge gaps. It’s like having a team where each member speaks a different language and there’s no translator. Inevitably, stuff gets lost in translation.

On the surface, you might not notice the cracks immediately. Orders still get out the door, customers still get tracking numbers, and returns still get processed eventually. But behind the scenes, you’re working harder and spending more to compensate for the disconnection. Let’s dig into those hidden costs one by one; you might recognize a few in your own operation.

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1. Productivity Black Holes

One of the first casualties of disjointed systems is your team’s productivity. Think about how much time is wasted on tasks that should be automated or at least streamlined:

  • Duplicate Data Entry: Your warehouse team prints orders from System A, then manually types them into Shipping System B to get labels. Later, they might update an inventory count in System C. It’s 2025, why are we still playing secretary between systems? This double or triple work not only eats up hours, but it also introduces errors. Humans aren’t great at mindless copy-paste jobs; inevitably, a “10” becomes a “100” somewhere, or an address gets misspelled.
  • Swivel Chair Operations: Ever feel like your day is Alt-Tab, Alt-Tab, Alt-Tab? That’s the “swivel chair” effect, moving between screens because info lives in different places. Need to answer a simple customer question like “Hey, did my return get processed?” You have to check the ecommerce platform for the order, the returns system for the RMA status, and the warehouse system to see if the item is in stock. Three logins later, you have an answer (hopefully). Multiply that by dozens of inquiries and tasks, and it’s death by a thousand clicks.
  • Training and Onboarding Overhead: Each additional system is an additional skill set that new employees must learn. Your SOP document starts to look like a phone book. Onboarding a new hire to your ops team becomes a month-long saga (“First, learn Tool X. Then Tool Y. Don’t mix them up. Here’s how to export from X to import to Y…”). And every system has its quirks; your poor Ops Manager has to become the in-house expert on 5 different UIs and workflows. That’s mentally draining and frankly not what they signed up for.

These productivity hits are often unmeasured. No one writes “spent 2 hours reconciling spreadsheets between systems” on a timesheet. But it’s happening. Fragmented workflows = friction = slower operations. And in ecommerce, slow is deadly. Which brings us to the next cost…

2. Customer Experience Clunks (and the Revenue Hits You Don’t See)

Your customers experience the results of your operations, whether you like it or not. When systems aren’t in sync, customers feel it:

  • Shipping Delays & Surprises: Say your inventory system and your website aren’t perfectly synced (not a far-fetched scenario in disconnected land). A customer orders an item that shows in stock online, but in reality, it’s out of stock in the warehouse because the update lagged. Now you have to scramble to either rush stock or notify the customer. Either way, the customer’s confidence in you just took a hit. Or perhaps you shipped from the wrong location because your order system didn’t communicate that the East Coast warehouse was out of units, but the West Coast had plenty. Now the delivery takes a week longer and the shipping costs you twice what it should have.
  • Returns Black Box: From the customer’s side, returns can be the most anxiety-inducing part of ecommerce. They send the item back and then… wait. If your returns system isn’t integrated with your customer communication, the customer might be left in the dark (“Did they get my package? When will I see the refund?”). I’ve seen cases where the left hand (returns dept) processed a refund, but the right hand (customer support) didn’t know because the systems were separate, so support gave incorrect info or failed to reassure the customer in a timely way. A confused, unhappy customer = lost future sales. Maybe they’ll forgive a one-off glitch, but if every interaction with your brand feels a bit clunky, they won’t stick around.
  • Omnichannel Oops: These days, customers might interact with you on multiple channels (marketplaces, your own site, maybe even brick-and-mortar). If each channel’s operations are siloed, customers can’t get a unified experience. For example, they bought on your Shopify site but want to return to your store. Can your systems handle that seamlessly? Or a customer calls customer service about an Amazon order, can your rep see that order in the same system as DTC orders? If not, cue the awkward “Uh, hold on while I look that up in another system…” Not professional. Disconnected ops often lead to disconnected customer experiences, and customers can sense when your left hand doesn’t know what the right is doing. It erodes trust and loyalty.

The scary thing is, the revenue impact of these CX issues is hard to quantify, but very real. Maybe it’s increased cart abandonment (because your delivery estimates are slow or stockouts frequent). Maybe it’s higher return rates (because, say, product info wasn’t consistent across channels). Or it’s simply lost lifetime value when customers quietly slip away to competitors who offer a smoother ride. You might not see an immediate bill for these costs, but they show up in softer metrics like customer lifetime value, repeat purchase rate, and even your ad spend efficiency (if you’re having to reacquire lapsed customers). In short, fragmentation can make your brand look bigger (in a bad way) or less competent than you actually are.

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3. Higher Operational Costs (Death by a Thousand Apps)

Now let’s talk dollars and cents on the ops side. Running multiple disconnected tools often means you’re paying for overlapping functionality or not leveraging economies of scale:

  • Multiple Subscriptions & Vendors: Obviously, more tools = more subscriptions or licenses. You might be paying for 3 different platforms where a single integrated platform could do it all (or at least a big chunk) for a better-bundled rate. Or perhaps you started on a bunch of cheap apps, but as volume grew, you had to upgrade each one to higher tiers. Suddenly your monthly SaaS bill is looking scary. I’ve seen small brands where the combined cost of all their point solutions was higher than if they had just invested in one robust system from the get-go.
  • Maintenance and IT Overhead: With separate systems, you either live with minimal integration or you bolt things together with custom code, plugins, zaps, etc. Maintaining those connectors can become a nightmare. Every update to one system risks breaking the link. Maybe you even hire a developer or IT consultant to set up APIs between systems, that’s an added cost and complexity. And what if something breaks? Pinpointing where an error occurred in a daisy chain of software is not fun (everyone points fingers: “Must be the API”, “No, our system is fine, it’s the other one”). Meanwhile, orders might be stuck in limbo while troubleshooting happens, yikes.
  • Inventory and Stock Inefficiencies: This one’s a bit more subtle, but disconnected ops often mean poorer inventory visibility. You might err on the side of caution and hold more safety stock because you aren’t confident in the numbers you see from system A vs system B. Or you don’t reposition inventory to the optimal location because you lack a unified view. That ties up capital in excess stock or leads to missed sales on out-of-stocks. Both are costly. Better integration tends to enable leaner inventory management, something all retailers crave.
  • Human Firefighting = $$: All those productivity black holes and manual fixes we mentioned? That often translates to needing more staff than otherwise. If one integrated system could handle the workload of two disconnected ones, you might avoid hiring an extra ops coordinator whose main job becomes babysitting the gaps. Or your current team could focus on value-add activities (like negotiating better shipping rates, analyzing sales trends, and improving processes) instead of playing human middleware. People’s time is money. You’re either directly paying more salaries, or you’re paying in opportunity cost because your talented team is stuck in the weeds.

4. Stunted Growth and Agility

Perhaps the most pernicious cost is the opportunity cost of what you can’t do because your operations are too fragmented to support it. In a fast-moving ecommerce market, agility is gold. Disconnected systems make you less agile:

  • Expanding to New Channels or Markets: Want to start selling on a new marketplace or launch a pop-up store? With an integrated ops platform, it might be as simple as flipping a switch or adding a module. But if your systems are separate, each new channel might need its own parallel process. I’ve seen businesses hold off on launching on, say, Walmart Marketplace or international expansion because it would “mess up our workflow” or require a whole new set of tools. That’s growth stifled by tech debt.
  • Scaling Volume: When you’re small, manual workarounds are manageable. But if you double order volume, those cracks widen. If your operations are glued together with spreadsheets and heroics, the scale will break them. Then you’re in a crisis, trying to re-platform or integrate under pressure, which usually means downtime and mistakes. The cost here could be failing to capitalize on demand or, worse, imploding under success (not fulfilling on time, angering customers, getting bad reviews, etc., because your ops buckled).
  • Data-Driven Decision Making: In the era of Big Data, disconnected ops leave you with fragmented data. It’s hard to get a single source of truth when sales are in one system, fulfillment in another, and returns in a third. So, you either don’t do robust analysis or you spend a lot of analyst hours piecing together CSV exports. That means you might miss trends like “Hey, product X has a high return rate in the Northeast, maybe it’s a shipping issue or a sizing issue specific to that region.” Or you can’t easily calculate your true customer acquisition cost vs lifetime value because the data lives in silos. Without integrated data, you’re essentially flying partially blind. The strategic missteps that can result (ordering too much stock, mispricing shipping, not noticing a surge in return fraud, etc.) have real financial impacts.

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So, What’s the Fix? (The Light at the End of the Silo)

Alright, enough doom and gloom. The whole point of exposing these hidden costs is so that we can tackle them. The obvious antidote is integration, ideally, a unified platform or at least a well-connected stack for fulfillment, shipping, and returns (and maybe more, like inventory and customer data).

Imagine a world where one system (or a tightly knit system) handles your order from the moment it’s placed to the moment the customer is satisfied (either keeping the product or completing a return). No more jumping between screens to update status. The inventory updates in real-time across all channels. The customer gets consistent communications. Your reports come from one database, so they’re always in sync. Sounds dreamy, right?

This isn’t just theoretical. Modern solutions (yes, including our team at Cahoot, shameless plug) are tackling exactly this problem. The philosophy is: modularity with unity. For instance, Cahoot offers fulfillment, shipping, and returns in one platform. You can start with what you need (maybe you just use the shipping software at first), but because it’s one ecosystem, adding the other pieces later is seamless. It’s like having individual puzzle pieces that perfectly snap together because they’re made as one set. You don’t have to rip out your whole tech stack on day one (“no rip-and-replace” as we say); you can gradually migrate into a unified system, alleviating pain points step by step.

The results? Those hidden costs we talked about start melting away:

  • Teams reclaim the hours lost to copy-paste and platform switching, which can be refocused on growth projects or simply mean you can handle more orders with the same staff.
  • Fewer errors and faster processes mean happier customers, you’ll see that in better reviews, fewer support tickets, and maybe even higher repeat purchases since everything just works smoothly.
  • Operational costs come down as redundancies are eliminated (one system vs five, fewer mis-ships, lower inventory buffers, etc.).
  • When opportunity knocks, a big BFCM spike, a new sales channel, whatever, you can answer with confidence because your house is in order. Your unified system scales with you; you’re not scrambling to patch up leaks.

Final Thoughts

In summary, the hidden costs of disconnected operations are very real, but they’re also avoidable. It requires an honest look at your current setup and the courage to change it. That might mean consolidating tools, investing in integration, or switching to a unified platform that’s built for modern ecommerce needs. Yes, there’s effort involved in that transition, but think of it like cleaning up a messy warehouse; once it’s done, everything flows with ease, and you wonder why you didn’t do it sooner.

At the end of the day, an ecommerce or retail brand succeeds by delivering great products and great experiences efficiently. You can’t do that when your own internal systems are fighting each other. So, don’t let disconnected operations be the silent killer of your profits and reputation. Break down those silos, connect the dots, and watch the benefits ripple through every corner of your business. Your team will thank you, your customers will thank you, and future-you (with a thriving, scalable business) will definitely thank you.

Now, over to you: Have you experienced any of these pains? Are you stuck in spreadsheet hell or juggling a few too many apps? Share your war stories or victories in integrating ops, I’d love to hear how others are navigating this journey. After all, we’re all trying to build something great without going crazy in the process. Here’s to more cohesion and less chaos!

Frequently Asked Questions

Why are disconnected operations so common in ecommerce?

Because most brands grow organically, adding new tools as problems arise. It starts with good intentions, but without a plan to integrate systems, the tech stack turns into a disjointed mess.

What are the most overlooked costs of a fragmented operations stack?

Productivity losses, training inefficiencies, higher customer service burdens, and missed revenue opportunities are the big ones. These don’t show up on a P&L, but they quietly erode profitability.

How do disconnected systems impact customer experience?

They cause slower fulfillment, inconsistent communication, and higher error rates. Customers notice when your left hand doesn’t know what the right is doing, and they often don’t come back.

What’s the ROI of consolidating ecommerce operations?

Brands that consolidate save money on software, reduce labor inefficiencies, and improve customer satisfaction. The real ROI is operational agility, being able to scale, expand, or adapt without imploding.

Do I need to rip out all my systems to fix this?

Not necessarily. Look for platforms that allow phased adoption, so you can start with one component (like shipping) and expand into a unified system over time. Think modular, but made to connect.

Written By:

Jeremy Stewart

Jeremy Stewart

Jeremy Stewart leads customer success at Cahoot, helping merchants achieve high-performance logistics through smart technology and process optimization. With a background in both ecommerce operations and client services, Jeremy ensures that every merchant using Cahoot gets measurable results—whether they’re scaling from one warehouse to many or managing complex returns.

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Using Rithum to Optimize Multi-Channel Fulfillment and Dropshipping

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9 minutes

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Rithum isn’t just a rebrand, it’s a reinvention. Born from the merger of ChannelAdvisor, CommerceHub, and DSCO, Rithum is now one of the most powerful platforms for brands, retailers, and suppliers navigating the connected ecommerce world. According to Rithum’s CEO, the rebrand marks the beginning of a new era focused on innovation, growth, and supporting customers at every stage of their journey. With over $50 billion in GMV flowing through its pipelines annually, Rithum is quietly powering some of the world’s greatest brands, and making optimized consumer shopping journeys feel seamless.

If your ecommerce strategy includes multi-channel order fulfillment, dropshipping, and scalable growth, Rithum might be the platform you didn’t know you needed. Rithum supports businesses from the very beginning of their ecommerce journey, streamlining onboarding and initial setup to ensure a smooth start.

What Is Rithum?

Rithum is a multi-module platform focused on creating connected ecommerce experiences. It brings together marketing, commerce, delivery, and discovery into one scalable solution, helping brands and retailers operate more efficiently across marketplaces, DTC sites, retail media networks, and fulfillment channels. Rithum is designed to help launch, manage, and grow any type of ecommerce business, supporting the entire commerce operation from inventory management to multi-channel sales.

In other words, Rithum gives you the tools to grow sales, manage inventory, expand fulfillment, automate operations, and scale, all from a centralized command center. It’s built for the brands, retailers, and suppliers who want to stop juggling disconnected systems and finally integrate everything, supporting users every step of the way as they integrate their systems.

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Rithum at a Glance

  • Annual GMV: $50+ billion
  • Order Volume: Over 400 million orders processed per year
  • Products Listed: 2.4 billion+ SKUs across 420+ channels
  • Customer Base: 40,000+ companies, including major global retailers and niche DTC brands
  • Trusted by the industry’s leading retailers and brands: Rithum supports the growth and profitability of retailers and brands across the ecommerce ecosystem.
  • Legacy: Combines the capabilities of ChannelAdvisor, CommerceHub, DSCO, Cadeera, and more

That’s not just a lot of scale, it’s a lot of trust. Rithum powers commerce infrastructure for companies ranging from Fortune 500 retailers to fast-growing ecommerce entrepreneurs. As the industry’s most trusted commerce platform, Rithum delivers comprehensive solutions for retailers and brands navigating today’s market challenges.

Core Capabilities: Rithum Modules Explained

Rithum’s strength lies in its modular architecture. Businesses can tap into one, two, or all four of the core modules depending on their needs. Rithum supports businesses at every step, whether they choose a single module or implement the full suite, ensuring a smooth progression through each stage of their journey.

1. Commerce Solutions

This is the backbone. Rithum enables sellers to list products across hundreds of marketplaces, websites, social platforms, and retail sites, streamlining data sync, inventory updates, and pricing strategies.

Whether it’s Amazon, Walmart, Target Plus, Zalando, or your own Shopify site, Rithum’s software lets you manage product listings from one place. You can push updates to every sales channel instantly and reduce the lag that costs time, money, and customers.

2. Marketing Solutions

Rithum helps brands drive performance across paid search, social ads, and retail media networks. Think: Google Shopping, Meta Ads, Instacart, Criteo, Roundel, CitrusAd, you name it.

You can create optimized campaigns directly inside Rithum’s platform and integrate with leading analytics tools to tie ad spend to order fulfillment and margin impact. This means tighter control over ROAS, and faster decisions on what’s working and what isn’t.

3. Delivery Solutions

Order fulfillment isn’t just about speed, it’s about flexibility. Rithum’s delivery solutions automate routing based on inventory availability, warehouse proximity, shipping method, and cost-efficiency. This includes direct-to-consumer fulfillment, third-party logistics (3PL), and dropshipping.

Even better, Rithum integrates with Amazon MCF (Multi-Channel Fulfillment), letting brands use Amazon’s fulfillment infrastructure for non-Amazon orders. This creates margin advantages without the overhead of managing your own warehouses (though it’s quite a bit more expensive than outsourcing to 3PLs).

4. Discovery Solutions

Using AI and behavioral data, Rithum identifies top-performing suppliers, curates catalogs for buyers, and matches brands with new retail partners. This is especially powerful for B2B marketplaces and dropship networks looking to expand their assortments strategically.

The goal? Help suppliers work smarter, not harder, and give buyers access to high-margin, in-demand products without wasting time.

Why Rithum Matters for Modern Commerce

Let’s face it: managing ecommerce operations across 10+ sales channels is chaos without a platform like Rithum. The industry’s top brands use Rithum to automate, integrate, and grow. Here’s how:

1. Unified Inventory Management

Forget spreadsheets. Rithum provides real-time inventory visibility across all your selling channels. This helps reduce stockouts, improve fill rates, and prevent costly overselling.

2. Streamlined Order Fulfillment

Orders from Amazon, Shopify, Walmart, and your DTC site all route through a single order management system. Rithum auto-selects the best fulfillment method, be it internal warehouse, dropship partner, or Amazon MCF.

3. Data-Driven Marketing

Tie your product data to your ad performance. Rithum’s platform ensures that your marketing campaigns reflect inventory levels, promotions, seasonal trends, and shipping timelines.

4. Optimized Margins at Scale

One of the most underrated advantages of using Rithum is margin optimization. By automating fulfillment and identifying cost-saving delivery solutions, you increase profit per unit while maintaining fast delivery speeds.

5. Powerful Integrations

Rithum offers prebuilt connections with all major ecommerce platforms, marketplaces, and ERPs. Whether you’re using NetSuite, BigCommerce, Adobe Commerce, or Salesforce Commerce Cloud, Rithum plays nicely in the sandbox.

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Use Case: A Dropshipping Brand Using Rithum

Let’s walk through a simplified scenario:

1. A brand lists 10,000 SKUs using Rithum’s commerce solution.

2. Rithum syndicates those listings to Amazon, Walmart, and a DTC site.

3. Inventory levels sync across platforms in real-time.

4. Orders start coming in from all channels.

5. Rithum routes the orders to a mix of 3PL warehouses and dropship suppliers based on margin and speed.

6. The marketing team uses Rithum’s tools to launch ad campaigns based on best-sellers and restock timelines.

7. The operations team reviews delivery metrics and margin performance using Rithum’s dashboard.

8. The brand expands to a European marketplace, using Rithum’s localization features and supplier discovery module.

Rithum enables brands, retailers, and suppliers to work together seamlessly throughout the dropshipping process, ensuring efficient collaboration and smooth order fulfillment.

From listing to delivery, everything flows through one platform, Rithum, acting as the heartbeat of your dropshipping operation and keeping every part running smoothly.

Brands and Retailers Benefiting from Rithum

Retailers like Belk used Rithum to onboard over 500,000 SKUs in under 90 days, resulting in a 36% YoY increase in GMV. Similarly, brands like Superdry and Marks & Spencer have leaned on Rithum’s marketing automation and fulfillment capabilities to grow international sales and reduce channel friction.

For smaller companies, the appeal is just as strong. Rithum lets lean ecommerce teams punch above their weight, automating order fulfillment, syncing inventory, and scaling ad campaigns without adding headcount.

Challenges to Be Aware Of

No platform is perfect. Here are a few potential drawbacks:

  • Complex Onboarding: Rithum’s capabilities are powerful, but not plug-and-play. Implementation often requires a dedicated team or integration partner.
  • Cost Structure: After the ChannelAdvisor/CommerceHub merger, some users reported pricing increases of 4–7x. Smaller businesses may need to weigh the ROI carefully.
  • Support Transition: With consolidation comes some turbulence. Support quality can vary depending on your plan, region, and internal rep.

Still, these challenges are manageable if you’re serious about long-term scale.

How Rithum Compares to Other Platforms

Platform
Strengths
Weaknesses
Rithum
Unified commerce, delivery, marketing
Complex onboarding, premium cost
Zentail
Easy setup, automation
Fewer marketplaces supported
Feedonomics
Robust product feed optimization
Limited fulfillment capabilities
Skubana
Inventory automation
Light on marketing tools
Cahoot
Fastest fulfillment via P2P network, most profitable reverse logistics
Primarily focused on shipping/logistics

Rithum is ideal for businesses seeking an end-to-end platform that supports everything from product discovery to last-mile delivery, especially if those businesses operate across multiple sales channels and want to optimize every piece of the puzzle.

To see how Rithum can help your business, schedule a demo to view the platform in action and learn more about its features and benefits.

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Where Cahoot Fits In

For ecommerce sellers using Rithum but seeking faster, more cost-efficient fulfillment, Cahoot can be a perfect complement. While Rithum automates order routing and marketplace connections, Cahoot offers peer-to-peer fulfillment with 1-day ground delivery coverage across the U.S., at rates that beat most traditional 3PLs.

By integrating Cahoot into the Rithum workflow, brands can unlock smarter delivery solutions that drive higher margins and better customer experiences.

Final Thoughts

Rithum is more than just a new name; it’s a new rhythm for ecommerce. By merging legacy giants like ChannelAdvisor and CommerceHub, the Rithum platform is enabling connected ecommerce experiences at scale. With modules for commerce, marketing, delivery, and supplier discovery, it empowers brands, retailers, and suppliers to build lasting commerce businesses. Rithum also offers valuable resources to support teams and foster community within the ecommerce ecosystem.

It’s not for the faint of heart. Implementation takes planning. Costs can add up. But for ecommerce teams aiming to automate, scale, and integrate across channels, Rithum delivers.

Whether you’re launching a DTC brand, scaling a supplier network, or operating as one of the world’s greatest brands, Rithum helps create the infrastructure needed to move at speed, sell with confidence, and thrive in a fragmented retail world. Users love the seamless experience and impressive results they achieve with Rithum.

Frequently Asked Questions

What is Rithum, and what companies is it built from?

Rithum is a connected ecommerce platform formed by merging ChannelAdvisor, CommerceHub, DSCO, and other technology providers. It supports global brands, retailers, and suppliers.

How does Rithum improve order fulfillment and delivery solutions?

Rithum automates order routing across warehouses, dropship suppliers, and Amazon MCF, helping companies optimize shipping speed, cost, and customer satisfaction.

Which types of businesses should use Rithum?

Rithum is best suited for ecommerce brands, retailers, and suppliers managing sales across multiple marketplaces who need scalable software for fulfillment, marketing, and inventory.

Does Rithum offer tools for marketing and retail media?

Yes, Rithum’s marketing solutions connect directly to platforms like Google, Meta, Instacart, and retail media networks, helping businesses drive optimized consumer shopping journeys.

How does Rithum help brands expand globally?

Rithum’s commerce and discovery modules allow brands to manage listings across 420+ channels, onboard new suppliers, and localize product data to grow into new markets efficiently.

Written By:

Jeremy Stewart

Jeremy Stewart

Jeremy Stewart leads customer success at Cahoot, helping merchants achieve high-performance logistics through smart technology and process optimization. With a background in both ecommerce operations and client services, Jeremy ensures that every merchant using Cahoot gets measurable results—whether they’re scaling from one warehouse to many or managing complex returns.

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Cahoot vs Veeqo: A Value-Driven Comparison for Modern Ecommerce Sellers

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9 minutes

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When ecommerce sellers start scaling across marketplaces like Amazon, eBay, Walmart, and Shopify, their shipping software can either accelerate that growth or slow them down. Two platforms built to handle multi-channel shipping are Veeqo and Cahoot. Both offer discounted shipping labels and order management tools, but the similarities end there. This in-depth comparison will explore what each software delivers, what it lacks, and which one ultimately supports fast-moving ecommerce teams better.

At a Glance: Cahoot vs Veeqo

Feature
Cahoot
Veeqo
Multi-Channel Order Import
Yes
Yes
Discounted Carrier Rates
Yes
Yes
Rate Shopping Across Carriers
Yes
(Autonomous)
Yes
(Basic)
Bulk Label Printing
Yes
(Autonomous)
Yes
(Traditional)
Support for Own Carrier Accounts
Yes
Yes
Automation Rules & Order Routing
Yes
(Highly Configurable)
Limited to Presets
Intelligent Package Selection (Cartonization)
Yes (AI-powered)
No
WMS Features
Yes
Partial
Inventory Visibility
Yes
(real-time)
Yes
(limited granularity)
Returns Workflow Integration
Optional Peer-to-Peer Returns
Basic RMA
Live Customer Support
Yes
(Help Desk, Phone)
No phone support
Amazon Buy Shipping API Certified
Yes
Yes
Supports Amazon SFP
Yes
No
Open to 3PLs
Yes
No

Pricing Models & Carrier Rates

Both Cahoot and Veeqo offer access to discounted shipping rates from major carriers like UPS, FedEx, and USPS. Veeqo highlights its access to Amazon-negotiated carrier rates, especially beneficial for FBM sellers. However, it’s worth noting that Cahoot also offers deeply discounted rates through its aggregated carrier network, and unlike Veeqo, sellers aren’t required to be Amazon merchants to access them.

Users have praised Veeqo’s rates in particular, though some feel that the real-world savings depend on volume and location. One user on Trustpilot noted, “Veeqo offers good rates, but it doesn’t always beat what I negotiated directly with FedEx.” That said, having an option for both Veeqo and using your own account provides flexibility.

Cahoot lets sellers compare real-time rates across carriers, or even better: automate all the rate shipping and bulk shipping label generation based on the desired logic (cheapest, fastest, delivery promise, signature-required, etc.). This level of autonomous support (removing the human) goes a step further than Veeqo’s more manual workflows.

Order Routing & Workflow Automation

This is where the gap between the two platforms widens. Cahoot excels at automation.

Cahoot’s rule engine lets sellers automatically assign orders to specific warehouses, select packaging based on product dimensions, and pick carriers based on dynamic rules. It includes AI-powered cartonization, reducing overpackaging and optimizing label selection at scale. This feature alone can save high-volume shippers thousands per month.

Veeqo supports some automation, but according to multiple reviews, the rules engine lacks flexibility. As one user put it: “You can automate some parts of the shipping process, but complex routing logic just isn’t possible.” Another noted on G2, “Our warehouse team constantly has to manually override presets in Veeqo to get the right shipping option.”

Cahoot also offers the option to import product master data, assign SKUs to multiple warehouses, and automate routing for distributed fulfillment. These features are especially helpful for sellers managing multiple sales channels and warehouse locations.

Multi-Channel Capabilities

Both platforms support multi-channel order import from Amazon, eBay, Shopify, Walmart, Etsy, and more. Veeqo is tightly integrated with Amazon (it’s owned by Amazon), which brings advantages for FBM sellers, like access to Buy Shipping and automated order syncing.

However, some sellers note that Veeqo prioritizes Amazon workflows and that the support for non-Amazon channels lacks depth. A Trustpilot reviewer stated, “It’s clearly built with Amazon in mind. Shopify orders don’t always sync correctly, and the custom mapping is limited.”

Cahoot offers native integrations with all major ecommerce platforms, with equal priority across sales channels. That neutrality is useful for brands expanding beyond Amazon and looking to centralize operations across multiple storefronts.

It also means Cahoot isn’t limited by Amazon policy shifts or ecosystem changes. For businesses hoping to grow a multi-platform brand, that independence matters.

Inventory & Warehouse Management

Veeqo includes basic inventory tracking tools but doesn’t offer a full warehouse management system (WMS). Its UI shows available stock and syncs between platforms, but lacks pick/pack workflows, barcode scanning, and location-based inventory management.

Cahoot includes WMS features as part of the platform, with no need for third-party plugins. Sellers can assign bin locations, manage cycle counts, and generate pick lists automatically. One Cahoot user shared, “We reduced picking errors by 60% after switching from ShipStation to Cahoot because the WMS features are built in.”

For growing brands with even modest warehouse operations, this difference is key. It consolidates tech stack complexity and reduces reliance on disconnected tools.

Support & Learning Curve

Cahoot provides live onboarding, in-platform chat, and phone support. Multiple users note how responsive the support team is. One review on G2 says, “Every time I had an issue, Cahoot got back to me within minutes. I never felt like I was waiting around.”

Veeqo, on the other hand, has no phone support, and several users on Trustpilot and Reddit cite frustrating support delays. One review read, “You submit a ticket and wait… sometimes for days. It’s not great when your entire shipping flow is paused.”

Veeqo also has a steeper learning curve for non-Amazon users. The dashboard is robust but not intuitive for sellers focused on Shopify or direct-to-consumer models.

Amazon Buy Shipping & SFP

Both platforms are certified for Amazon Buy Shipping, meaning they help sellers remain compliant with Amazon’s policies and tracking requirements. However, only Cahoot supports Seller Fulfilled Prime (SFP).

For Amazon SFP sellers, this is a major differentiator. Cahoot’s compliance engine ensures same-day label printing, cut-off time enforcement, and late-delivery prevention. Veeqo does not support this, which rules it out for many brands trying to maintain the Prime badge.

Data You Can Actually Use

With Veeqo, many sellers are flying blind. Sales data is fragmented. Shipping costs aren’t always transparent. And pulling that data often means wrangling spreadsheets with missing headers or running into failed exports.

Cahoot makes it easy to analyze profits, understand shipping costs, and track eligible shipments in one dashboard. You get full access to real performance data without needing to bounce between platforms.

Built for Amazon Sellers, but Not Owned by Amazon

Veeqo is owned by Amazon. That means anything you do on the Amazon platform is potentially visible. For Amazon sellers trying to protect their strategy or operate across other channels, that’s a problem.

Cahoot is fully compatible with Amazon FBM, FBA, and Buy Shipping, but stays independent. You get the lowest rates available, without locking yourself in deeper with Amazon or giving up your leverage.

Pros & Cons

Veeqo Pros:
  • Owned by Amazon, with tight FBM integrations
  • Free to use (zero software cost)
  • Access to Amazon-negotiated carrier rates
  • Clean UI for basic shipping workflows
  • Veeqo Cons:
  • Limited automation rules engine
  • Inability to export meaningful data to inform decisions
  • No support for SFP
  • No phone support
  • Lack of cartonization or packaging optimization
  • No built-in WMS features
  • Support delays are frequently cited in reviews (think: Amazon-like Support)
  • Cahoot Pros:
  • Advanced shipping automation and AI-powered cartonization
  • Built-in WMS with pick/pack/scan tools
  • Full Help Desk and phone support with fast response times
  • Channel-agnostic approach supports real multi-platform growth
  • Fully supports Amazon SFP
  • Highly configurable rules engine for complex workflows
  • Cahoot Cons:
  • Not free (pricing is customized based on volume)
  • Currently optimized for the U.S. market only (international support expanding)
  • Cahoot vs. Veeqo: What Sellers Are Saying

    “Using Veeqo costed us so much time. Exports kept failing, inventory didn’t match, and the UI was just confusing. Cahoot gave us back control.”

    ~ Multichannel seller, apparel industry

    Speak to a fulfillment expert



    “The only reason I stuck with Veeqo was because it was free. But once our shipping volume increased, we needed more, and Cahoot delivered.”

    ~ Electronics brand owner

    Speak to a fulfillment expert



    Final Verdict

    Veeqo is a solid, free tool for Amazon-first sellers who want to print shipping labels and access decent rates with minimal setup. But it lacks depth in automation, support, and warehouse operations.

    Cahoot, by contrast, is built for scale. It’s ideal for ecommerce brands that are serious about operational efficiency and growth. From smart automation to robust warehouse tools and superior customer support, Cahoot is the better long-term investment for sellers looking to streamline operations across multiple platforms.

    If you’re running a high-volume ecommerce business that ships across multiple sales channels, handles inventory in multiple locations, or simply wants to reduce costs and errors at scale, Cahoot is the clear winner.

    Don’t settle for free if it slows your business down.

    Choose smarter. Explore how Cahoot can simplify your shipping and scale with your brand.

    Frequently Asked Questions

    Is Veeqo really free, and what’s the catch?

    Yes, Veeqo is technically free, but many sellers report that key features like bulk shipping, inventory management, and reporting are limited. You may still need your own carrier accounts, and support can be slow.

    How does Cahoot’s shipping software help reduce shipping costs?

    Cahoot gives sellers access to discounted rates across major carriers like UPS, FedEx, and USPS, with no Veeqo credits or software bugs required. Plus, bulk shipping tools and data-driven insights help optimize your entire shipping process.

    Can I use Cahoot if I sell on Amazon and other ecommerce channels?

    Absolutely. Cahoot supports multiple sales channels, including Amazon, Walmart, eBay, and Shopify, while keeping inventory levels synced across all platforms. Unlike Veeqo’s integration, Cahoot’s system is fast, clean, and flexible.

    What makes Cahoot better for inventory management than Veeqo?

    Cahoot simplifies multi-channel inventory with real-time stock tracking, automated syncing, and alerts to prevent overselling. Veeqo users often struggle with managing inventory across platforms due to sync lags and poor data visibility.

    Why do sellers leave Veeqo for Cahoot?

    Many sellers switch when they realize Veeqo’s free model comes with trade-offs: limited support, Amazon ownership, clunky UI, and frustrating data export issues. Cahoot offers a full-featured, seller-first solution that saves time and drives smarter decisions.

    Written By:

    Indy Pereira

    Indy Pereira

    Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

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    Turn Returns Into New Revenue

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    Peer-to-Peer Returns Platform: How It Benefits Emerging DTC Brands

    In this article

    8 minutes

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    Returns are the terrible, horrible, no good, very bad part of running an ecommerce business. Not just for shoppers (waiting around for a refund) but for emerging ecommerce brands, especially DTC operations. Every return cuts into profit, eats up time, and piles up inventory no one wants to touch. But here’s the twist: what if returns didn’t go back to the warehouse at all? What if they went directly to a new buyer instead? That’s the magic behind the peer-to-peer returns platform. This model introduces key advantages for DTC brands, such as reducing costs, minimizing waste, and improving customer satisfaction.

    Cahoot, known for shaking up ecommerce logistics, is leading the charge with this innovative approach in the peer-to-peer returns space. And no, it’s not a borrowing scheme like peer-to-peer lending or a financial product like personal loans. But it does borrow some DNA from those systems, distributed networks, smart matching, and skipping the middleman. Online platforms in the peer-to-peer space facilitate these direct connections, much like how they connect borrowers and lenders in financial contexts, streamlining the process for all parties involved. Think of it as the social lending of ecommerce returns, where the system connects returners directly with new buyers, just as peer-to-peer platforms connect borrowers directly with lenders.

    The Real Pain of Traditional Returns

    Traditional returns work like this: a customer changes their mind, prints a label, ships the item back to you, and then you have to receive, inspect, restock, maybe repackage, and eventually resell it, often at a steep discount. Add in return shipping costs, warehouse labor, customer service tickets, and even potential late fees for delayed processing, and it’s a recipe for negative ROI.

    For a small ecommerce business or a founder running lean, this isn’t sustainable. Shipping every return back to your warehouse is like using a bank account with constant fees and zero interest. It drains your cash flow. You could compare it to funding loans with higher risk and low return, much like the challenges faced with traditional loans when penalties and late fees add up. Frankly, it’s a bad deal.

    Enter Peer-to-Peer Returns

    Instead of sending the returned item to your fulfillment center, Cahoot’s peer-to-peer returns platform lets the original customer ship it directly to a new buyer. Here’s how it plays out:

    1. A customer initiates a return.

    2. The platform asks them to upload photos, confirm the condition, and hold the item for a few days.

    3. AI kicks in, verifying the item’s resale quality, analyzing the returner’s history, and scanning for fraud (risk management). The platform’s technology enables streamlined processes, making the entire experience faster and more user-friendly.

    4. Meanwhile, the item is automatically relisted on your store as open-box in real-time, discounted slightly, but still your branded product. The relisting and resale process is transparent and clear, much like how peer-to-peer lending platforms provide comparable loan terms, so both buyers and sellers know exactly what to expect.

    5. When a new customer buys it, the returner gets a label to ship it out directly.

    6. They’re refunded once tracking confirms it’s on the way or received. In terms of risk management, the risk of a single failed return transaction can be compared to a single default event in lending, highlighting the importance of robust verification and diversification strategies.

    Now, instead of a refund eating your margins, you’re reselling the item at 85–95% of retail, skipping warehouse handling and double shipping. It’s fast. It’s efficient. And yes, it saves money.

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    Why This Works (Especially for Small Businesses)

    This isn’t just a fun gimmick. Cahoot’s peer model addresses real ecommerce challenges:

    • Shipping Costs: You skip the return leg to the warehouse.
    • Inventory Management: The item never clogs up your system.
    • Speed: New customers get the item faster. Returners get refunded sooner.
    • Customer Satisfaction: Everyone feels good helping the planet and their wallet.

    For small businesses, this model is similar to how small business loans and business loans provide alternative financing options to cover major expenses, supporting growth and development when traditional funding is limited.

    It’s like a micro version of peer lending. Instead of funding loans with capital, you’re moving product through customer participation. Instead of worrying about borrower defaults, you’re focused on buyer satisfaction and ensuring compliance through verified transactions. The platform also helps brands achieve their financial goals by offering accessible and flexible solutions. Other benefits of the peer-to-peer returns model include improved business insights, better payment terms, and fostering a supportive community for both buyers and sellers.

    The Financial Angle

    Okay, let’s talk money. The traditional return process? It’s basically like investing in traditional savings accounts, low return, high friction. With peer-to-peer returns, you’re now in the world of alternative investments. You’re getting more value, faster turnover, and lower risk.

    Just as peer-to-peer (P2P lending) platforms allow individual and institutional investors to invest in loans, with returns shaped by interest rates and regular interest payments, our model lets you realize value more efficiently. On lending platforms and lending sites, loan offers are determined by factors like minimum credit score, good credit, and the borrower’s profile, much like how our platform assesses transaction eligibility and risk.

    Your effective recovery rate improves. That espresso machine that used to cost you $50 to restock and repackage? Now it’s resold in 72 hours at 90% retail with no warehouse touch. That’s the kind of turnaround most lending sites or lending platforms would kill for.

    Built-In Risk Management

    Cahoot doesn’t wing it. Our P2P returns platform is built with risk tolerance settings, fraud detection layers, and condition verification, all using AI. That means you’re not just trusting your customers blindly. These tools empower brands to make informed decisions about approving returns and managing risk.

    It’s like when institutional investors assess borrower defaults, they don’t rely on vibes. They crunch data, assess credit risk, and build safeguards. Cahoot’s doing the same for your returns: historical data, photo analysis, shipping trends, and user history all factor into who gets approved for peer-to-peer returns.

    Customer Experience

    Customers like this model. It’s interactive. It feels more personal. They get to feel like part of a sustainability loop. It’s like when borrowers connect with individual lenders on lending platforms, there’s emotional value. A product gets rehomed instead of returned to some faceless warehouse.

    Returners are rewarded with small credits or perks for participating. Buyers get a deal. You recover more revenue. And the planet breathes a little easier. That’s what we call attractive returns.

    Wrapping It Up

    Peer-to-peer returns aren’t just a clever workaround; they’re a full-on rethinking of ecommerce reverse logistics. For small business owners, they offer a practical way to save money, improve customer satisfaction, and align with sustainability goals. For larger brands, they unlock serious cost savings and scalability.

    So, whether you’re selling sneakers, smart home gear, or skincare, if returns are eating your margins, it might be time to make a move.

    Because unlike traditional financial institutions, this isn’t built on bureaucracy. It’s built on agility, innovation, and a willingness to rethink the rules. Sound familiar?

    That’s ecommerce done smarter.

    Frequently Asked Questions

    What is a peer-to-peer returns platform, and how does it work?

    A peer-to-peer returns platform connects the original buyer of a product with a new customer who wants to purchase it, avoiding the need to ship the item back to the brand’s warehouse. Instead of returning it to a traditional logistics hub, the returner ships the item directly to the next buyer. This innovative approach reduces return costs, speeds up resale, and supports sustainability goals for small businesses.

    How is a peer-to-peer returns model different from traditional returns?

    Traditional returns involve sending the product back to a brand or warehouse, where it’s inspected, restocked, and resold. A peer-to-peer system skips that step. The original buyer holds the item temporarily while the platform finds a new buyer. Once sold, the item ships directly to the new customer, eliminating an entire shipping leg and creating a more efficient, cost-saving process similar to how peer-to-peer lending eliminates middlemen in finance.

    Are peer-to-peer returns safe for ecommerce businesses and customers?

    Yes. Platforms like Cahoot use advanced fraud detection, data analytics, and AI verification to ensure the returned item matches quality standards before resale. Buyers can review photos, condition grades, and return policies. Just like in peer lending, where borrower defaults are managed through credit checks and risk scoring, P2P returns include safeguards to protect both original and new customers.

    What types of ecommerce brands benefit most from peer-to-peer returns?

    Virtually any ecommerce brand can benefit from peer-to-peer returns as long as the products aren’t perishable, dangerous (hazmat), or otherwise require a tighter level of control (contamination concerns). From emerging DTC brands and small businesses to large enterprises, companies offering fast-moving consumer goods see the biggest gains. Peer-to-peer returns help reduce operating costs, improve cash flow, and increase customer satisfaction, especially for businesses without access to traditional loans, large warehouses, or institutional investor backing.

    How can I start using a peer-to-peer returns platform?

    To get started, ecommerce sellers can partner with a platform like Cahoot that offers peer-to-peer returns as part of its fulfillment solution. The platform handles the tech, including photo-based grading, shipping logistics, and fraud prevention. It’s as simple as integrating the system, setting product eligibility rules, and letting the platform connect returns with new buyers, streamlining processes, and unlocking attractive returns on previously lost sales.

    Written By:

    Indy Pereira

    Indy Pereira

    Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

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    Why Temperature-Controlled 3PL Fulfillment Services Is Hot

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    6 minutes

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    So here’s the deal: not all products like to chill the same way. Some want crisp air. Others prefer it mild. And then there are the divas, like cheese, chocolate, and pharmaceuticals, that absolutely must stay within a consistent temperature range or things go sideways fast. Enter the world of temperature-controlled 3PL fulfillment services, where warehouses become climate whisperers and storage becomes science.

    And let’s be honest, if you’re shipping temperature-sensitive products without the right temperature control setup, you’re flirting with spoilage, recalls, and angry emails. No one wants that.

    Why Brands Are Getting Serious About Temperature-Controlled Warehousing

    Blame it on the rise of DTC food, supplements, skincare, and all those perishable goods showing up on doorsteps. Ecommerce has exploded into categories that used to be strictly brick-and-mortar. Now everyone’s shipping salsa, serum, and medicinal products, and they all demand different temperature ranges and humidity levels.

    That’s where temperature-controlled warehousing steps up. It’s not just about slapping an AC unit in the corner and calling it a day. A true climate-controlled warehouse is a carefully calibrated environment, with everything from refrigeration equipment to humidity control, air conditioning, and yes, even sandwich panels to regulate insulation.

    Think of it like this: the temperature-controlled warehouse maintains product integrity the way a museum maintains art. It’s protection. It’s preservation. It’s essential.

    Four Ranges, Endless Requirements

    Let’s talk numbers. Most temperature-controlled facilities operate within four different temperature ranges:

    1. Frozen (-10°F to 0°F): For ice cream, frozen meats, and products that prefer sub-zero vibes.

    2. Refrigerated (33°F to 40°F): Think produce, pharmaceutical products, food grade items, and alcoholic beverages that demand cool-but-not-frozen conditions.

    3. Ambient storage (50°F to 70°F): This is your standard controlled environment, great for supplements, makeup, or dry snacks.

    4. Room temperature with humidity control: Often overlooked but critical for chocolate, electronics, and other temperature-sensitive goods.

    Without proper temperature monitoring, one spike in heat or dip in cold air, and your stored goods could be toast. Literally. Improper storage doesn’t just shorten shelf life, it can lead to product quality issues, regulatory compliance headaches, and, worst-case scenario, a full-blown recall.

    The Cold Storage Supply Chain Is Booming

    We’ve all heard of the cold chain, but the spotlight on cold storage really intensified during the pandemic. Vaccines, fresh produce, and meal kits made everyone realize how fragile product integrity can be when temps aren’t dialed in just right.

    Now that ecommerce has leaned hard into consumables, the need for temperature-controlled warehouse facilities isn’t just for Big Pharma or Big Food. Even indie brands selling elderberry syrup or adaptogen smoothies need safe storage that meets safety standards.

    And that’s where 3PLs with temperature-controlled warehousing solutions come in hot (and cold). They’re building out storage space with energy consumption top of mind, balancing optimal storage with sustainability. It’s a delicate dance, keeping products stored safely while not blowing up the power bill.

    When Is Controlled Warehousing the Right Move?

    If you’re shipping anything that falls under sensitive products, perishable products, or items with “store below 72°F” on the label, yes, it’s time. That includes:

    • Food products (fresh, frozen, or fancy)
    • Pharmaceutical products
    • Alcoholic beverages (yes, some spoil)
    • Temperature sensitive goods like vitamins, probiotics, and CBD
    • High-end cosmetics and skincare with active ingredients
    • Specialty beverages, dairy alternatives, etc.

    Look, there’s no one-size-fits-all in fulfillment. But if your goods don’t like high temperatures, or they melt, separate, rot, or grow fur in transit, temperature controlled storage isn’t optional. It’s critical.

    Key Benefits of Temperature-Controlled 3PL Fulfillment

    Here’s what a solid temperature controlled warehousing partner brings to the table:

    • Consistency. A climate-controlled setup isn’t just cool sometimes. A good 3PL keeps a consistent temperature 24/7 using smart sensors, alarms, and responsive temperature monitoring systems.
    • Flexibility. Need 1,000 square feet today and 10,000 next month? The right provider scales storage units and square footage with your seasonal swings.
    • Regulatory compliance. Whether you’re dealing with FDA, USDA, or international guidelines, these folks help ensure compliance so you don’t get flagged or fined.
    • Product quality. When your stored goods arrive fresh, intact, and ready to use, your customers notice. And so do your reviews.
    • Lower risk. No more worrying about improper storage, spoiled batches, or losing a pallet because someone didn’t close the fridge door right.

    What to Look for in a Temperature-Controlled Facility

    Not all warehousing solutions are created equal. If you’re shopping for a 3PL, ask the awkward questions:

    • What temperature ranges do they support?
    • Can they offer different temperature zones in the same facility?
    • Do they offer cold chain tracking or just ambient delivery?
    • How often do they inspect and recalibrate their refrigeration equipment?
    • What’s their backup power situation if temperatures rise unexpectedly?

    Oh, and don’t forget the nerdy stuff, like expansion valves, airflow testing, and environmental conditions reporting. It’s not sexy, but it matters.

    Final Thoughts

    As ecommerce keeps moving into categories like wellness, food, and pharma, temperature-controlled warehousing needs are becoming the norm, not the niche. A few degrees can make or break a customer experience. A few missed requirements can sink a whole product launch.

    So if you’re scaling a brand that relies on product integrity, get serious about your controlled warehousing strategy. Because when it comes to sensitive goods, the wrong warehouse is worse than no warehouse at all.

    And if you’re still storing collagen gummies in your garage, well, it’s time to upgrade.

    Frequently Asked Questions

    What is temperature-controlled warehousing, and why does it matter?

    Temperature-controlled warehousing is a storage solution that keeps goods within specific temperature and humidity ranges. It protects temperature-sensitive products from spoilage, ensuring quality, safety, and compliance across the supply chain.

    Which products require temperature-controlled storage?

    Items like perishable food, pharmaceutical products, skincare, supplements, and alcoholic beverages often need controlled temperatures to maintain product integrity and shelf life.

    What temperature ranges are used in temperature-controlled warehouse facilities?

    Most facilities operate within four different temperature ranges: frozen (-10°F to 0°F), refrigerated (33°F to 40°F), ambient (50°F to 70°F), and room temp with humidity control.

    How does temperature-controlled warehousing support regulatory compliance?

    By maintaining a consistent temperature range and offering detailed temperature monitoring, controlled facilities help brands meet FDA, USDA, and food safety standards.

    Can a 3PL offer both ambient storage and cold chain solutions?

    Yes. Many modern 3PLs provide flexible temperature-controlled warehousing solutions that include cold storage, ambient zones, and climate-controlled spaces, all under one roof.

    Written By:

    Indy Pereira

    Indy Pereira

    Indy Pereira helps ecommerce brands optimize their shipping and fulfillment with Cahoot’s technology. With a background in both sales and people operations, she bridges customer needs with strategic solutions that drive growth. Indy works closely with merchants every day and brings real-world insight into what makes logistics efficient and scalable.

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