In 2025, Amazon said Prime members received over 13 billion items the same or next day globally and over 8 billion in the U.S., and Prime now offers free delivery on over 300 million items with tens of millions available for Same-Day or Next-Day Delivery.

Amazon has been a pioneer in setting new customer expectations. Online shoppers weren’t really asking for free two-day delivery until Amazon made it available as part of its Prime membership in February 2005‑—that changed the online world forever. Today customers expect free two-day shipping on all their online purchases anywhere. 

Amazon is at it again and now getting customers addicted to free one-day shipping. If you are a third-party seller, you too now must adapt to offering free one-day delivery if you wish to maintain high visibility, especially on marketplaces. It won’t be long before Amazon will prioritize two-day shipping offers organically over the others when it comes to buy box occupancy. Without one-day shipping offers, you might also have to spend more on ads in order to drive traffic to your listings. So getting your ducks in a row now will pay dividends soon besides contributing to more sales now.

It’s, however, no surprise that offering one-day shipping is both very expensive and stressful, given the high performance standards demanded by Amazon. Where there are challenges, there are opportunities. This is one such opportunity that growth-minded Sellers can capitalize on today before the others catch on the bandwagon.

Operational Excellence

In March 2026, Amazon introduced 1-hour and 3-hour delivery options in a growing number of cities and towns, with over 90,000 products available for delivery in three hours or less.

Seller Fulfilled Prime performance requirements now include at least 99% on-time shipment, at least 98% Buy Shipping usage, no more than 0.5% seller-initiated cancellations, and at least 97% on-time delivery for Prime orders shipped outside Buy Shipping; Amazon says delivery-speed thresholds are refreshed quarterly. Without a reliable order fulfillment team and the right technology, it will be difficult to achieve the metrics required for the program: 99% on-time shipment rate, 95% on-time delivery rate, and <1.5% cancellation rate.

Below are some best practices we’ve learned at Cahoot that will help you prepare to offer one-day shipping:

Get ecommerce orders out on time

Seller Fulfilled Prime orders where the customer receives same-day, one-day, or two-day delivery are expected to ship on the day the order is received during configured operating days and order cut-off times, and sellers must configure order cut-off times to 2:00 p.m. or later Monday-Friday and 10:30 a.m. or later Saturday-Sunday. Pay close attention to the following:

• Thoughtful storage strategy. Keep in mind that picking staff would spend most of their time walking through the warehouse, and a well-thought-out storage strategy would go a long way in improving operational efficiency. It is good practice to segment products and store them separately based on popularity and affinity. Don’t forget to regularly audit this because demands may shift due to product life cycle and seasonality.
• Efficient Picking Methods. Picking is a crucial step in the order fulfillment operation, and errors in picking would result in a lot of wasted time. Clearly marked bins for different SKUs and automated picking can improve the accuracy tremendously.
• Automated Label Printing. With little time to process orders especially towards the cutoff times, it becomes paramount to generate the best shipping labels automatically from your shipping software. Manually comparing services and carriers is prone to human errors and takes away precious time that can be spent elsewhere.
• Properly trained staff. It is imperative to make sure workers (especially seasonal staff) can navigate your warehouse quickly, safely and pick-and-pack accurately. You can start the new workers with standard orders as they improve their speed and performance before fulfilling one-day orders.

Deliver orders on time

Below are some pitfalls to avoid in the order fulfillment process that delay package arrivals:

• Address verification and label quality. Having correct address down to the zip code +4 including “floor” or “suite” where applicable, makes a difference. Make sure your printed labels are clear, bold, and easy to read and not faded or dull (may happen to laser printers).
• No distinct sounds and smells. Packages with odd smells and sounds will get pulled aside during sorting at the carrier facilities for further inspections. While packing make sure to seal scented products properly and to turn off items or toys that make noises.
• Pick the right carrier and service. Lastly, make sure the carrier you’ve selected for 1-day orders has an excellent record of on-time delivery. A cheap but questionable service is not suitable for one-day shipping because you’ll be penalized heavily for late deliveries.

Maintain a low order cancellation rate

Having orders with no items to fulfill them due to inventory issues can force you to cancel an order, which will hurt your performance metrics. To improve inventory accuracy and visibility, implement a Warehouse Management System (WMS) and/or an Order Management System (OMS) and do not rely on human-managed spreadsheets.

Make one-day delivery profitable nationwide

In 2025, Amazon expanded Same-Day and Next-Day Delivery to over 4,000 smaller cities, towns, and rural communities across 44 states.

There are limitations to having a single order fulfillment center for one-day shipping. A guaranteed next-day express shipping service is four times as expensive than the economical ground shipping. Unless you skyrocket your  retail price accordingly, you won’t be able to make money off the transaction.

The simplest way to expand your order fulfillment nationwide is through outsourcing. There are marketplace-owned services like Amazon FBA and Shopify Fulfillment Network, which offer good rates nationwide, but charge extra for one-day orders. There are also third-party logistics (3PL) providers that offer nationwide reach but typically require minimum-commitment contracts and upfront fees. Many 3PLs do not have the ability to support all the Amazon Seller Fulfilled Prime requirements. Outsourcing order fulfillment could also make it difficult to maintain your hard-earned negotiated carrier rates because most providers like to use their own accounts for shipping for the mark-up.

A new option for offering one-day shipping nationwide is to use a peer-to-peer order fulfillment network like Cahoot, where top-rated sellers collaborate by pooling their resources to offer one-day and two-day shipping at the price of ground shipping or less. Cahoot offers the most economical way for brands and retailers to offer super fast shipping to its customers on all sales channels without sacrificing their profit margins.

Written By:

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.

Efficiency is the backbone of successful warehouse operations. As businesses grow and consumer demands evolve, warehouses must continually refine their processes to stay competitive. Whether it’s optimizing layouts, integrating automation, or enhancing employee training, each improvement contributes to a smoother, faster, and more cost-effective operation. By implementing strategic measures, warehouses can maximize their potential, reduce waste, and improve overall productivity. This article explores a range of strategies to achieve a highly efficient warehouse.

1. How to Measure Warehouse Efficiency

It is absolutely necessary for warehouses to find ways to measure efficiency and identify areas for improvement. Common key performance indicators (KPIs) such as inventory turnover, order cycle time, and perfect order rate can be used to measure warehouse efficiency.

Inventory turnover indicates how often inventory is sold and replaced over a period, reflecting the effectiveness of inventory management, while order cycle time measures the time taken from order placement to delivery, highlighting the speed of warehouse operations. The perfect order rate tracks the percentage of orders delivered without errors.

In addition to those metrics, warehouse managers can use metrics such as storage capacity utilization, labor productivity, and equipment utilization to measure the efficiency of specific aspects of their business. By regularly reviewing these KPIs, warehouse managers can pinpoint inefficiencies and implement targeted improvements to optimize warehouse operations.

2. Optimizing Warehouse Layout and Traffic Flow

A warehouse’s layout can significantly improve or significantly harm efficiency. Optimizing existing warehouse space with a well-designed floor plan can prevent bottlenecks, reduce excessive travel time, and make it easier to locate products. By optimizing warehouse space, businesses can reduce unnecessary movement and streamline workflows.

One effective approach is to position high-demand items closer to packing and shipping areas. This ensures that frequently picked products are easily accessible, reducing the time employees spend retrieving them. Categorizing products based on size and weight also enhances picking speed and accuracy.

Another key consideration is the design of pathways. Wide, clearly marked aisles prevent congestion and allow for the smooth movement of personnel and equipment, such as forklifts and pallet jacks. Regularly reassessing the layout based on inventory trends and operational needs ensures that the warehouse remains adaptable to changes in demand.

3. Implementing Advanced Inventory Management Systems for Warehouse Operations

Managing inventory efficiently is essential for preventing overstocking, stockouts, and misplacement of goods. Advanced inventory management systems (IMS) provide real-time tracking and visibility, helping warehouses maintain optimal stock levels and optimize warehouse efficiency through the use of warehouse management systems (WMS).

Modern IMS solutions incorporate barcode scanning and RFID technology to accurately track inventory movement. These tools reduce human errors, improve order accuracy, and minimize delays caused by misplaced items. Additionally, cloud-based inventory management allows for seamless integration with other business systems, providing instant updates on stock levels, supplier shipments, and order processing.

Automating inventory tracking also enables better demand forecasting. By analyzing historical sales data and market trends, warehouses can anticipate demand fluctuations and adjust inventory levels accordingly. This prevents excess stock from occupying valuable storage space while ensuring that popular products are readily available.

4. Adopting Automation and Robotics

Automation is transforming the warehousing industry by increasing efficiency, accuracy, and speed. Implementing automated solutions reduces reliance on manual labor for repetitive tasks, allowing employees to focus on more complex responsibilities.

Automated guided vehicles (AGVs) and conveyor systems streamline material handling by transporting goods efficiently throughout the warehouse. Robotics, such as automated picking and sorting systems, further enhance productivity by reducing errors and accelerating order fulfillment.

While the initial investment in automation can be significant, the long-term benefits—such as reduced labor costs, increased processing speed, and improved accuracy—justify the expense. Additionally, integrating warehouse management systems (WMS) with automation ensures seamless coordination between various operational processes, further optimizing efficiency.

5. Enhancing Employee Training and Engagement

Even with advanced technology, human employees remain (and will remain) a crucial element of a well-managed warehouse operation. Well-trained and motivated staff contribute significantly to streamlined operations and improved accuracy. Regular training programs ensure that employees are proficient in using warehouse technology, safety protocols, and best practices.

Engagement is equally important. Incentivizing employees with performance-based rewards encourages efficiency and accuracy. Open communication channels, feedback mechanisms, and a positive work environment foster a sense of ownership among workers, increasing productivity and reducing turnover rates.

6. Utilizing Data Analytics for Continuous Improvement

Data-driven decision-making is a powerful tool for warehouse optimization. By analyzing key performance indicators (KPIs) and evaluating and streamlining warehouse processes, businesses can identify inefficiencies and make informed improvements.

Metrics such as order accuracy rates, picking and packing times, and inventory turnover ratios provide insights into operational strengths and weaknesses. Predictive analytics can also enhance efficiency by anticipating demand patterns, optimizing workforce allocation, and minimizing waste. By leveraging data analytics, warehouses can continuously refine their processes and maintain a competitive edge.

7. Implementing Lean Inventory Practices

Adopting lean inventory management principles helps minimize waste and maximize resource utilization. The Just-in-Time (JIT) inventory system is a popular lean approach that ensures stock arrives only when needed, reducing storage costs and excess inventory. Implementing JIT requires strong supplier relationships and precise demand forecasting to avoid stockouts.

Lean inventory practices emphasize efficiency in every aspect of warehouse management, from procurement to fulfillment. By maintaining optimal stock levels and eliminating unnecessary storage, warehouses can reduce costs while improving service levels.

8. Enhancing Safety Measures

A safe warehouse is an efficient warehouse. Aside from their toll on personal health, workplace injuries and accidents lead to downtime, decreased productivity, and increased operational costs. Prioritizing safety measures ensures a secure working environment and smooth operations.

Regular safety training, clear signage, and well-maintained equipment help prevent accidents. Implementing ergonomic workstations reduces strain-related injuries among employees. Additionally, enforcing proper safety protocols for operating machinery, handling hazardous materials, and lifting heavy objects minimizes risks.

Investing in safety not only protects employees but also enhances overall efficiency by preventing disruptions caused by workplace incidents. A culture of safety encourages employees to adhere to best practices, creating a more productive work environment.

9. Regular Maintenance of Equipment

Warehouse equipment plays a vital role in daily operations, and its reliability is crucial for efficiency. Regular maintenance prevents unexpected breakdowns that can disrupt workflows and delay order fulfillment.

A preventive maintenance program ensures that forklifts, conveyor belts, and other machinery remain in optimal working condition. Scheduling routine inspections, replacing worn-out components, and addressing minor issues before they escalate prolong the lifespan of equipment and reduce downtime.

Additionally, maintaining accurate records of maintenance activities allows managers to track equipment performance and plan for necessary upgrades or replacements. A proactive approach to maintenance keeps warehouse operations running smoothly and efficiently.

10. Streamlining Communication Channels

Effective communication is the backbone of a well-coordinated warehouse. Miscommunication can lead to errors, delays, and inefficiencies, making it essential to establish clear communication channels between employees and departments.

Implementing communication tools such as warehouse management software (WMS) with real-time messaging features enhances coordination. Regular team meetings ensure that staff are aligned on operational goals, workflow changes, and performance expectations.

Encouraging an open-door policy where employees can voice concerns and suggest improvements fosters collaboration and innovation. By maintaining clear and transparent communication, warehouses can minimize misunderstandings and enhance overall productivity.

11. Customizing Storage Solutions

Optimizing storage systems improves space utilization and accessibility, leading to more efficient warehouse operations. Customizable storage solutions cater to the specific needs of different products, enhancing organization and retrieval speed.

Adjustable shelving, modular racking, and vertical storage units maximize available space while ensuring easy access to items. Implementing clear labeling systems further streamlines picking and stocking processes. In addition, regularly assessing storage requirements and reconfiguring layouts based on inventory trends helps warehouses maintain efficiency. Customizing storage solutions to fit the business’s needs prevents wasted space and enhances operational flow.

Conclusion

Improving warehouse efficiency requires a combination of strategic planning, technological integration, and workforce optimization. By continuously evaluating and refining processes, warehouses can achieve greater productivity, reduce costs, and enhance customer satisfaction. The key to success lies in embracing innovation, fostering a culture of efficiency, and staying adaptable to industry changes. With a commitment to continuous improvement, warehouses can position themselves as leaders in operational excellence.

Frequently Asked Questions

What are some cost-effective ways small warehouses can improve efficiency without investing in expensive automation?

Small warehouses can enhance efficiency by optimizing their layout to reduce unnecessary movement, implementing lean inventory practices to minimize waste, and utilizing affordable inventory management software to track stock levels more accurately. Training employees to follow standardized workflows and adopting basic automation tools, such as barcode scanners, can also help improve speed and accuracy. Additionally, regularly analyzing key performance metrics can help small warehouses identify inefficiencies and make strategic improvements without requiring a large financial investment.

What are the biggest challenges warehouses face when trying to implement new efficiency strategies?

One of the most common challenges is employee resistance to change, as new processes or technology may require additional training and adaptation. High upfront costs for automation and technology upgrades can also be a barrier, especially for smaller operations. Furthermore, integrating new systems with existing workflows can be complex and time-consuming, potentially causing temporary disruptions. To overcome these obstacles, warehouses should prioritize phased implementation, provide comprehensive training, and ensure clear communication about the benefits of the changes to gain employee buy-in.

What strategies can warehouses use to manage seasonal demand fluctuations?

Seasonal demand can create significant operational challenges, including stock shortages, overstocking, and increased labor costs due to fluctuating order volumes. Warehouses can prepare by analyzing historical sales data to anticipate demand spikes and adjust inventory levels accordingly. Implementing flexible storage solutions, such as temporary shelving or rented warehouse space, can help accommodate excess stock when needed. Additionally, hiring temporary workers and cross-training existing employees can ensure that labor capacity aligns with seasonal surges, preventing bottlenecks and maintaining order fulfillment efficiency.

How can warehouses incorporate sustainability into their efficiency strategies, and what are the benefits?

Warehouses can improve efficiency while promoting sustainability by adopting energy-efficient lighting, optimizing transportation routes to reduce fuel consumption, and using eco-friendly packaging materials. Implementing waste reduction strategies, such as recycling programs and reusable packaging, can further enhance environmental responsibility. Not only do these practices help reduce operational costs, but they also improve a company’s reputation and align with increasing consumer demand for sustainable business practices. By integrating sustainability into warehouse operations, businesses can create long-term cost savings while contributing to a greener supply chain.

Written By:

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.

“If you cannot measure it, you cannot improve it,” said famed British physicist Lord Kelvin about scientific experimentation over 100 years ago.

It’s still pertinent today as you seek to improve ecommerce operations, remain competitive and improve our profitability and customer service. In order to improve operations, you first need to measure key fulfillment metrics such as total cost per order (CPO), shipped cost per carton, cost per line and cost unit. Once you understand what these metrics show, you can then develop options for processes that reduce steps and cost, or improve service levels such as order turnaround time.

What key fulfillment metrics do you monitor and use to improve your performance? Here are 16 we recommend you use as a starting point.

Read the article here.

Written By:

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.

Simply put, “pick and pack” is the process of picking a customer’s order off of a shelf (or wherever it’s stored) and packing it in a box to be shipped to the customer. If you’re a new seller with just a few orders a day, you’re probably doing your own picking and packing – maybe out of your living room! The time, energy, and focus it takes to correctly pick and pack order after order quickly overwhelms sellers as they grow, though, which is why most turn to a 3PL and outsource their ecommerce order fulfillment once they get traction in the market. As you can imagine, picking and packing gets a lot more complex in a warehouse optimized for speedy and accurate ecommerce fulfillment. Read on to learn how pick and pack quality impacts your ecommerce store, how the experts optimize their order picking, and how you can find the best pick and pack fulfillment service for your needs.

What is Warehouse Picking?

Warehouse picking is the process of selecting and retrieving products from a warehouse or storage facility to fulfill customer orders. It is a critical component of the supply chain and plays a vital role in ensuring customer satisfaction. The picking process involves several steps, starting with receiving products into the warehouse, storing them in designated locations, and then picking the items as orders come in. Strategic planning, coordination, and execution are essential to ensure efficiency and accuracy in warehouse picking. By optimizing these processes, businesses can improve their overall operational efficiency and deliver a better experience to their customers.

Why Pick and Pack Fulfillment Quality Matters for Customer Satisfaction

Picking speed is an essential behind-the-scenes metric for ecommerce stores because it dictates order cutoffs and on-time delivery. These metrics in turn have a big impact on your conversion rate and repeat customer rate, and therefore your overall growth!

Your order cutoff time is the time in the day before which a customer has to place an order that can be shipped out that same day. Faster, more efficient picking operations can set later order cutoffs. In the days of 7 day shipping, this wasn’t such a big deal. With the rise of 1 and 2-day shipping, though, missing an order cutoff means a customer has to wait twice as long to receive their package. According to McKinsey, 2021 research, almost half of omnichannel consumers will shop elsewhere when delivery times are too long. when the estimated delivery time is too long – so an early cutoff means lost customers.

Picking accuracy is perhaps even more important than picking speed. As more sellers pile into ecommerce, price and advertising competition continue to rise, squeezing margins. Repeat customers who don’t need advertising to convert are critical to a seller’s ability to build a sustainable long-term business model. Sending customers the wrong order kills a brand’s image, likely loses the chance to create a long-term customer, and on top of that incurs return shipping fees.

Finally, intelligent packing can make the difference between a profitable sale and an unprofitable one. How? It’s all in the box.

It’s easy enough to set rules that guide which single item orders are put in which boxes. But what about multi-item or multi-quantity orders? They can quickly get confusing for warehouse personnel, and workers under pressure to go fast default to using too-big boxes to fit all the items. That, in turn, increases the dimensional weight of the box, which increases the cost of the shipping label.

Top ecommerce fulfillment 3PLs like Cahoot have efficient picking operations that work quickly while minimizing errors and cost. Cahoot’s processes enable 2 pm cutoff times that are a full two hours later than the industry standard, while its teams use barcode scanners to eliminate errors. When every single pick is checked by a computer, the order is right every time. Finally, Cahoot software creates intelligent and dynamic rules even for the most complicated multi-item orders that minimize shipping cost, saving you money.

Pick and Pack Warehouse Picking Strategies

How does picking and packing work in an ecommerce warehouse? The answer varies widely based on the sophistication of the operation and what types of items they’re working with. Automation also has a huge impact on how warehouses pick and pack, with the most tech-forward operations leaning heavily on robots and conveyor belts to quickly move items to humans doing the picking and packing. Different warehouse picking strategies can be employed to optimize efficiency and accuracy, depending on the specific needs of the operation.

Piece Pick and Pack

Piece Picking is the most straightforward method. Fulfillment personnel will pick orders one at a time as they come in, moving about the warehouse to pick items before returning to a packing station to prep the package for handoff to a carrier.

In most warehouses, each item will be stored in its own bin or case in a distinct location. When an order comes in, warehouse software will automatically generate a “pick list” that tells the worker where each item is stored in the warehouse. That way, the worker knows where to go to find each item and can grab them one at a time.

While this is the simplest pick and pack method, it’s also the least efficient, and most medium-to-large warehouses have moved past it.

Batch pick and pack

Batch Picking is similar to Piece Picking in that workers still move about the warehouse picking items for individual orders, but in Batch Picking, workers pick items to fulfill more than one order at a time.

Intelligent warehouse management software (WMS) guides this process to its optimal level of efficiency. Larger warehouses with more orders coming in have more opportunities for personnel to pick for multiple orders at once. Let’s say that four orders come in for the same pack of soap within three minutes of one another; in this simple example, the WMS will send just one worker to pick the soap for all four orders, bring it all back to a packing station, and to pack all the orders sequentially. Of course, this saves several trips to the soap shelf and helps the warehouse run more efficiently.

Zone pick and pack

Zone Picking is the first big step up in complexity, and it involves splitting the entire warehouse into different “zones” and giving different workers responsibility for each zone. Order pickers stay in their zone, and they pick items from their assigned zone only. Instead of the worker passing from zone to zone, they pass the picking box or cart over to the next zone from which it needs items. Once all of the needed items have been picked, they’re passed to the packing station, which is a separate and final zone.

Warehouses that use Zone Picking often have automated parts of the process – for instance, many will have conveyor belts that connect different zones to one another. That makes handoffs between personnel in different zones much quicker and more efficient, freeing them up to focus on fast and accurate picking. Each zone will also connect to the packing station via conveyor belt, so that orders of single units can quickly be passed up to the packing station for shipping.

Wave pick and pack

Finally, Wave Picking combines Zone Picking and Batch Picking. Each zone picks a large amount of items needed for orders in a batch, and then that batch is combined with batches from each other zone and sent up to the packing station. Workers at the packing station then grab what they need for orders from the batches packed from each zone to prepare for shipping.

Like Zone Picking, Wave Picking benefits significantly from automation and is frequently employed in large, sophisticated ecommerce fulfillment facilities.

Technology in Warehouse Picking

Technology plays a vital role in enhancing warehouse picking processes. Some of the most common technologies used in warehouse picking include:

• Warehouse Management Systems (WMS): A WMS is a software solution that manages and optimizes warehouse operations, including picking, packing, and shipping. It helps streamline the entire picking process by providing real-time data and insights, ensuring that orders are fulfilled accurately and efficiently.
• Voice Picking: Voice picking uses voice commands to guide pickers through the picking process. This hands-free technology improves accuracy and efficiency by allowing pickers to focus on their tasks without the need to handle paper lists or devices. Voice-directed picking with natural language processing moves beyond simple voice commands to systems that understand more complex natural language, reducing errors and training time.
• Collaborative Mobile Robots (Cobots): Employing collaborative robots (cobots) that can safely work alongside human pickers in shared workspaces, performing tasks like transporting picked items or assisting with heavy lifting. These robots are designed to work alongside human pickers, handling repetitive and labor-intensive tasks, enhancing productivity and reducing the physical strain on workers.
• Barcode Scanning: Barcode scanning, (a.k.a. Pick Scanning), uses barcodes to track and verify products throughout the picking process. This technology improves accuracy by ensuring that the correct items are picked and reduces the likelihood of errors leading to re-picks (which also reduces the likelihood of working putting the mis-pick back in the wrong bin location).
• Automated Guided Vehicles (AGVs): AGVs are robotic vehicles that automate the transportation of products within the warehouse. They improve efficiency by reducing the time and labor required to move items from one location to another, allowing human workers to focus on more complex tasks.

Warehouse Order Picking Best Practices

Implementing best practices in warehouse order picking can help improve efficiency, accuracy, and customer satisfaction, while limiting the amount of financial waste. Some of the most effective best practices include:

• Optimizing Warehouse Layout: A well-organized warehouse layout can significantly reduce travel time for pickers, improving overall picking efficiency. Grouping frequently picked items together and placing them in easily accessible locations can streamline the picking process.
• Implementing Efficient Picking Methods: Utilizing efficient picking methods, such as Batch Picking or Zone Picking, can enhance productivity and reduce labor costs. These methods allow pickers to handle many orders simultaneously or focus on specific zones, minimizing unnecessary movement. Personalized picking instructions based on worker experience tailors picking workflows to individual worker experience levels, optimizing for both speed and accuracy.
• Utilizing Technology: Leveraging technology, such as WMS or VoicePicking, can improve accuracy and efficiency in the picking process. These tools provide real-time data and guidance, helping pickers make informed decisions and reducing the likelihood of errors. Using computer vision to identify items during picking is another technology that reduces errors and speeds up verification.
• Providing Continuous Training: Continuous training for pickers is essential to maintain high levels of accuracy and efficiency. Regular training sessions can help workers stay updated on best practices, new technologies, and safety protocols, reducing errors and improving overall performance.

Common Challenges in Warehouse Picking

Warehouse picking is a complex process that presents several challenges, including:

• Inaccurate Inventory: Inaccurate inventory records can lead to picking errors, delays, and lost sales. Ensuring accurate inventory management is crucial to avoid these issues and maintain efficient warehouse operations.
• Inefficient Picking Routes: Inefficient picking routes can cause pickers to travel long distances within the warehouse, leading to longer pick times and higher labor costs. Optimizing picking routes through strategic planning and technology can help reduce travel time which improves efficiency.
• Labor-Intensive Processes: Manual picking processes can be labor-intensive, leading to higher labor costs and potential errors. Automating repetitive tasks and utilizing technology can help reduce the physical strain on workers and improve accuracy.
• Lack of Training: Untrained or poorly trained staff can lead to mistakes, inefficiencies, and safety risks. Providing comprehensive training and ongoing education for warehouse staff is essential to ensure smooth and accurate picking processes.
• Compliance and Regulations: Warehouses must comply with various industry regulations and standards, which can be challenging to manage. Staying updated on regulatory requirements and implementing compliance measures is crucial to avoid penalties and maintain operational efficiency.

How Does Pick and Pack Work for Fragile Items?

When picking and packing fragile items, speed becomes less important than the safety of the goods. After all, sending items that arrive broken is even worse than sending items slowly; you’ll have to write off the value of the broken items and pay to ship out replacements.

Picking and packing fragile items so that they don’t break in the warehouse or during transit used to come down to the experience and know-how of individual staff. Like most processes in the warehouse, though, guesswork is being replaced by intelligent automated rules to ensure that products arrive safely.

Consider our example below of a host of fragile goods from a fine Italian food purveyor. Each item is a damage risk, making an order with all of them a nightmare for most warehouse personnel.

An intelligent shipping software will make the difficult feasible by splitting the order into a number of shipments that finely balances shipping cost and breakage risk. It will then give guidance to the packing station on how to precisely protect and package each item to fit into the smallest box that will prevent damage in transit.

Many warehouses are set up for peak speed and efficiency, and thus, they don’t have the flexibility to intelligently adapt to different types of goods that need different treatment. That’s where Cahoot sets itself apart.

Future Trends in Warehouse Picking

Recent warehouse-operations research from Zebra shows AI is already being used for inventory optimization and cost optimization, so AI in warehouse picking is now an active operations tool, not just a future trend.

The world of warehouse picking is constantly evolving, driven by technological advancements, changing consumer demands, and global economic shifts. Some of the future trends in warehouse picking include:

• Adoption of Artificial Intelligence: Artificial intelligence is expected to play a larger role in warehouse picking, automating tasks, and improving efficiency. AI-powered systems can analyze data, dynamically calculate the most efficient picking routes in real-time, considering factors like traffic, order priority, and worker location, and predict demand, enhancing overall warehouse operations.
• Increased Use of Robotics: Robotics is expected to become more prevalent in warehouse picking, automating tasks, and improving efficiency. Advanced robots can handle complex picking tasks, work alongside human workers, and adapt to changing warehouse environments.
• Growing Importance of Sustainability: Sustainability is becoming increasingly important in warehouse picking, with companies looking for ways to reduce their environmental impact. Implementing eco-friendly practices such as reducing waste and optimizing energy use can help warehouses become more sustainable.
• Blockchain for supply chain transparency and tracking: Using blockchain technology to track items throughout the supply chain with up to the minute status and location.
• Increased Focus on Customer Satisfaction: Customer satisfaction is becoming increasingly important in warehouse picking, with companies looking for ways to improve delivery times and fulfillment accuracy. Enhancing the picking process through technology and best practices can help meet customer expectations and drive business growth.

By staying ahead of these trends and continuously improving their picking processes, warehouses can ensure they remain competitive and meet the evolving needs of their customers.

Cahoot: The Best Pick and Pack Fulfillment Service

Cahoot’s integration catalog now also includes Rithum, DSCO, NetSuite, Orderful, and Amazon Buy Shipping.

Cahoot’s nationwide network of over 100 warehouses provides affordable national ecommerce order fulfillment for online merchants. Our wide and diverse network enables us to fulfill a wide variety of needs, from sellers who need absolute peak speed at minimum cost to those that have fragile items or others that require special handling.

Our fulfillment centers are outfitted with dedicated personnel and technology that confers all the benefits of a top pick and pack service:

• Efficient picking enables late (2pm local time) order cutoffs
• Barcode scanning all but eliminates fulfillment defects
• Intelligent pick and pack software optimizes box size for every order, minimizing shipping cost for simple and complex orders
• Lowest cost by design

Unlike other providers, Cahoot also has the flexibility to work alongside existing merchant-owned warehouses (if you have them). We know that many merchants with non-standard items and order profiles carefully manage fulfillment themselves due to how difficult the process can be. Cahoot will analyze your existing network and customer base, then add a few locations of our own to seamlessly extend your network into a nationwide footprint.

With this approach, you can continue to get value out of your existing assets while delighting your customers and your bottom line with affordable fast shipping. Of course, our approach works just as well for merchants who want to fully outsource their fulfillment, and we’d be more than happy to take that on. Getting started with Cahoot is fast and easy – with pre-built integrations for major ecommerce channels like Amazon, Walmart, Shopify, and BigCommerce, we can get merchants started in as little time as it takes to send us your inventory. Talk to one of our experts today and explore how we can be the key that unlocks the next level of your profitable ecommerce growth.

Frequently Asked Questions

What is warehouse picking?

Warehouse picking is an order fulfillment process where item(s) from a customer order are retrieved from their inventory location(s) in a fulfillment or distribution center such as in a bin or on a shelf or pallet. Warehouse picking is the step that occurs before products are packaged and shipped out to their destination.

What is the picking process in a warehouse?

Warehouse picking is the process of finding items within a warehouse or fulfillment center and preparing them for shipment to customers. But there’s a lot of different ways to go about warehouse picking to ensure that it’s done as effectively and efficiently as possible.

What do you do as a warehouse picker?

Warehouse pickers are responsible for finding, picking, and packing goods for dispatch. They work in various locations, including e-commerce warehouses, wholesalers, and cold storage warehouses. It’s a physically demanding role that involves bending, lifting, and carrying products.

How to do picking in warehouses?

There are many strategies for picking in warehouses, which include batch picking, wave picking, zone picking, and piece picking. The best strategy for your warehouse picking setup will depend on the order volume running through your warehouse, the total number of SKUs in storage, your total number of pickers working at the same time, the type of facility you have, and the inventory management system and other technologies you have at your disposal. The different picking methods each have their own advantages and drawbacks.

What is voice picking in a warehouse?

Voice picking is a method of warehouse picking where pickers are equipped with a headset and microphone so they can easily communicate with the warehouse manager about picking details. Some systems are connected with an automated management system, which eliminates the need for a human on the other end of the line. Similar to other wearable warehouse picking options, voice picking has proven to be a time-efficient method and it also cuts down the likelihood of picking errors.

Written By:

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.

Seeing the success of Amazon’s outsourced fulfillment service Fulfilled By Amazon (FBA), marketplaces and e-commerce platforms are racing to build their own e-commerce order fulfillment networks. Undoubtedly, it is beneficial for sellers to have access to third-party fulfillment services wherever they choose to sell, but at what cost? Do these marketplaces have the sellers’ best interests at heart?

Multi-Channel Selling is More Profitable

When Third-party Sellers first started selling online, the first questions were, “Should I sell on Amazon or eBay besides my e-commerce website?” However, over time, that question has changed into, “How do I sell on both, as well as Walmart and other marketplaces when they make sense for my business?”. In fact, with the current e-commerce trend, it is almost imperative for online sellers to sell on multiple channels to survive, let alone grow. Numerous studies show that retailers selling on two or more sales channels have a healthier bottom line, on average, than those that don’t. But it gets complicated. Now, each platform has its e-commerce order fulfillment service and prioritizes the display and, thus, the sale of items fulfilled through them.

Let’s take a closer look at each.

Amazon FBA: Penalizing Multi-Channel Order Fulfillment

Amazon launched its third-party marketplace to satisfy customer demand for a broader assortment of products. Third-party (3P) Sellers add products much faster than Amazon, sourcing all the items themselves and helping build the “everything store” behemoth. According to recent data, over 60% of all physical goods sold on Amazon are from Third-party Sellers, meaning most products sold on the platform come from independent sellers rather than Amazon itself.

Then came Fulfillment by Amazon (FBA), a large-scale distributed warehousing and order fulfillment network for its Third-party Sellers. FBA helps Amazon offer nationwide 1- and 2-day delivery to customers (and regional same-day delivery) even if a 3P Seller sold the item. Commanding approximately 37.6% of all U.S. e-commerce spending in 2023, Amazon negotiated unbeatable shipping rates from all major carriers and offered incredibly low fulfillment fees to sellers. Opting for FBA gives Sellers a distinct advantage within the Amazon ecosystem. FBA sellers are more likely to win the “buy box” and are outright forgiven for any shipping-related customer complaints.

However, using FBA to fulfill non-Amazon orders is not as rewarding financially. Amazon uses FBA to deliver an excellent shopping experience for Amazon customers and power its famous growth flywheel by prioritizing its FBA services for its marketplace customers. The fees for non-Amazon orders are much higher, sometimes by as much as 30–50%. Moreover, Walmart outright banned FBA from its platform due to Amazon’s aggressive branding on boxes. In recent years, Walmart has approved using either Flexport or ShipBob fulfillment services to fulfill Walmart orders, but not both.

Shopify Order Fulfillment Network (Flexport)

Shopify started as an e-commerce platform that enabled sellers to quickly create their own professional online store independent of marketplaces. With its vibrant app ecosystem, Shopify aims to be a one-stop shop for small and midsize online sellers.

One of its growth strategies has been the app marketplace. Shopify’s incredible store diversity also means a high demand for specialized features. Keeping up with this expectation through Shopify’s development team is very challenging. Therefore, they’ve created an app marketplace to serve their sellers’ growing needs quickly. Through the marketplace, third-party companies can build and monetize specialty apps that augment and extend Shopify’s native functionality.

To continue fueling its growth, Shopify launched additional services to power more parts of the seller’s business and capture a larger share of the wallet. These services include Shopify Payments, Point-of-Sale, Shopify Capital, and Shipping Label printing. Small and midsize (SMB) sellers need these services, and they like the simplicity of a one-stop shop. These value-added services have increased Shopify’s revenue per seller over time.

Shopify also tossed its hat into the e-commerce order fulfillment ring as an extension of the same strategy. ‘Shopify Fulfillment Network’ (sold to and rebranded as Flexport in mid-2023 but still operating the Shopify Fulfillment Network app) is geared towards Shopify sellers with options such as custom packaging. The pricing and shipping speed aren’t expected to be near FBA (at least not in the near term), as Shopify does not own any logistics infrastructure. However, there are plans to partner with other warehouses and Third-party Logistics (3PL) providers. Smaller Shopify sellers who fulfill orders by themselves may find it a step up, but it’s too early to say. One thing we know for sure is that fulfilling orders through Shopify will not boost their “buy box” chances on Amazon. Shopify is serious about this move, as demonstrated by their acquisition of 6 River Systems for $450 M in September 2019.

Walmart Fulfillment Services (WFS)

Walmart introduced a fulfillment network similar to FBA in 2020 called Walmart Fulfillment Services (WFS). Third-party Sellers ship their inventory to Walmart’s network of over 40 domestic fulfillment centers for storage and then e-commerce orders are picked, packed, and shipped to customers. Walmart reported recently that 66% of its third-party Sellers use the service to ship more than half of Walmart Marketplace orders (up from fulfilling only ~25% of e-commerce orders just three years ago). The program aims to take the fulfillment burden off its Seller partners and increase delivery speeds for the end customers (often within 2 days). It also supports customer service for WFS‑fulfilled orders and handles returns, which frees up Sellers to focus on growing their business.

Unlike Amazon, Walmart ships approximately half of its e-commerce orders from its 4,600+ physical stores. This is possible because a store is within 10 miles of ~90% of the US population. While WFS rates are reported to be about 15% lower than competitors’, the captive order fulfillment services are tied to product discoverability on the marketplace, making participation more or less mandatory for merchants that choose to partner with Walmart.

The strategic bet paid off big time, as Walmart’s marketplace grew to become the second-largest in the US, edging out eBay.

Fulfilled by TikTok (FBT): The New Kid On the Block

Despite being the newest social commerce platform in the US, TikTok Shop is already estimated to be the third largest, trailing only Facebook and Instagram. In a strategic move that mimics the fulfillment services competitors that came before it, TikTok Shop launched Fulfilled by TikTok (FBT) in late 2024 to manage the storage, picking, packing, and shipping of orders placed on TikTok for its creators and brands. Sellers will like that inventory can also be intelligently distributed to support the same nationwide fast delivery at ground shipping rates that other fulfillment networks offer.

It remains to be seen if there will be a captive component to FBT such that product discovery and sales are undeniably linked to using the new service. Still, since the native influencer- and creator-first nature of TikTok and TikTok Live drive much of TikTok Shop’s traffic, it may be some time before a long-term stickiness strategy is developed. We know now that early users will benefit from subsidized storage and shipping costs, as well as ‘free’ customer service for order and shipping support. Customizable ‘badges’ help early users stand out from the competition.

Be Careful Jumping Onto the Bandwagon

So, nearly every major marketplace in the U.S. now has a preferred e-commerce order fulfillment network. Using a non-preferred fulfillment network has definite downsides, some outright punitive. These moves contradict the trend of multichannel selling and come at the sole expense of Sellers.

So why not sign up for all the order fulfillment networks?

It’s not even about the fees these networks charge, which can be significant for any business. The large hidden costs come from maintaining inventory at multiple locations. Let’s break it down:

1. Redundant inventory in key markets: Imagine a merchant who wants to offer fast shipping to customers in California and operates on three different marketplaces. The merchant would then need to store its inventory in California at three separate warehouses for each marketplace. After accounting for safety stock, that’s a lot of excess capital tied up unnecessarily.
2. Multiple inbound shipments: If a merchant signs up with three fulfillment networks, they must ship their inventory to three warehouses in every major region. This will be more expensive because they’ll be splitting their one big inbound shipment into multiple smaller inbounds.
3. Safety stock: Splitting the same amount of inventory between multiple warehouses instead of one or two increases the amount of safety stock merchants must maintain. The square root law of inventory calculates the additional safety stock that needs to be kept on hand as the number of fulfillment centers increases.
4. Clearance through multiple channels: If a product doesn’t sell well, merchants will incur the cost of clearing the dead stock through each of these redundant fulfillment centers.
5. Returns through multiple channels: Sellers must also compensate or pay for restocking returns on every platform, which can be as high as 20% in some product categories.

Apart from the tangible costs, managing multiple fulfillment programs can cause headaches—for example, the added complexity of juggling multiple contracts, billing audits, and keeping track of ever-changing rates and terms. Furthermore, holding more inventory exposes sellers to a higher risk of losses from shifts in customer demand or during a recession. If a Seller opts to go with an unaffiliated third-party logistics provider, they become a buy box pariah on every platform.

It is hard to ignore the environmental costs, too. The inefficiencies of excess inventory at its core result in a larger carbon footprint through excess transportation and warehousing operations. The repercussions are brutal to ignore when humanity is inching towards irreversible damage to the climate every day. Sellers are losing, and so is our planet!

The Future of Order Fulfillment is Wide Open

The platforms and marketplaces are doing what’s best for them. They are building their e-commerce order fulfillment networks to drive revenue and lock Sellers into their platforms. However, what’s best for marketplaces may not be best for Sellers. Captive order fulfillment services add unnecessary costs and do not scale to a seamless customer experience across channels.

The optimal future of order fulfillment is customer-centric. It means delivering goods to customers how they prefer, not limited to the options the seller or the fulfillment partner thrust upon them. The options should not be limited to lightning-fast delivery or Buy Online Pickup in Store (BOPIS). They should also allow the customer to choose greener delivery options for the Earth or the ability to have the order delivered the same day from a local store without costing an arm and a leg. When order fulfillment networks operate under this new paradigm, they’d be able to offer these options (and more) to merchants of all sizes, and such services will not be a luxury limited to large multi-billion dollar retailers (think Amazon-Kohls or Amazon-Staples) as an example.

The future of e-commerce order fulfillment must also be efficient, where all supply chain constituents work together to serve the customer profitably and responsibly. Instead of walls and hurdles preventing growth and advancement, true next-generation fulfillment solutions will facilitate collaboration between all value chain members. It will unite the manufacturers, the retailers, and everyone in between, including the competitors. At Cahoot, we firmly believe that customer centricity and merchant profitability will continue to suffer unless we re-imagine and re-design our captive order fulfillment models. You can read more about the future of order fulfillment and how our solution can help you get there today.

Written By:

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.