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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Amazon AWD: Benefits and Disadvantages of the Warehousing and Distribution Bulk Storage Solution

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If you’re an Amazon seller using FBA, you’ve probably experienced the stress of storage limits, seasonal fee spikes, or juggling inventory across warehouses. Amazon heard those pain points and introduced a relatively new program called Amazon Warehousing & Distribution (AWD). AWD functions as both a distribution service and a distribution program, streamlining inventory storage, automatic replenishment, and multichannel distribution for sellers by leveraging Amazon’s extensive logistics network. It’s essentially Amazon saying, “Hey seller, let us store your extra stuff cheaply and we’ll feed it into FBA (or even ship it elsewhere) whenever you need.” In theory, it sounds like a dream: low-cost bulk storage with Amazon’s logistics muscle behind it, and many sellers are super excited about the potential of AWD to solve long-standing inventory challenges. But is Amazon’s warehouse-and-distribute service all sunshine and rainbows? As with any solution, there are pros and cons to weigh. Let’s break down exactly what AWD is and the key benefits and disadvantages of using it for your ecommerce business.

What is Amazon AWD?

Amazon Warehousing & Distribution (AWD) is a service Amazon launched to provide low-cost bulk storage and inventory distribution for sellers. Think of it as a stage before FBA. You send a large chunk of inventory to Amazon’s AWD storage facilities (which are more like traditional warehouses, optimized for cost-efficient storage). Sellers send inventory to AWD using their preferred shipping method, such as box loads or palletized loads, and the choice of shipping method can impact transportation fees, which are calculated based on specific parameters. For AWD inbound, sellers can use Amazon Global Logistics or the Partnered Carrier Program to facilitate inbound shipments, often benefiting from cost savings and logistics support. From there, Amazon can automatically replenish your stock into various FBA fulfillment centers as needed, or even fulfill orders for other channels. Using Amazon’s partnered carriers can provide integrated rates and additional cost savings for transportation. In Amazon’s own words, “Amazon Warehousing and Distribution (AWD) is a low-cost bulk storage solution that distributes your inventory to the Amazon store and non-Amazon sales channels.” AWD is fully integrated with FBA; in fact, AWD covers your FBA inbound shipping as part of its service, essentially acting as a backstop to keep your FBA inventory in stock. Amazon’s managed service also offers discounted transportation rates and auto-replenishment, simplifying supply chain operations for sellers.

AWD is part of the broader Amazon fulfillment and Amazon fulfillment network, which streamlines storage, shipping, and inventory replenishment across multiple platforms. Inventory is stored at an Amazon fulfillment center, where Amazon personnel manage inventory storage, oversee warehouse operations, and provide real-time inventory data for sellers. Inventory may be distributed to multiple fulfillment centers, and AWD can split shipments across these centers to improve delivery speed and efficiency. When inventory is moved and replenished, master case handling supports efficient multi-channel distribution and reduces safety stock requirements. Inventory in AWD and FBA is stored differently, with each system optimized for its specific storage and management needs.

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So, instead of you renting a 3PL warehouse or stuffing your garage with extra product, Amazon will hold it for you at an AWD center for a monthly fee per cubic foot (which we’ll get into). Storage and transportation fees are calculated based on the cubic feet of inventory stored or moved, and are calculated based on factors like shipping distance, weight, and method. Inventory storage is a key component of AWD, offering low-cost, long-term storage and efficient distribution to various sales channels. When your FBA stock gets low, Amazon’s systems can auto-replenish from your AWD inventory, meaning they’ll move units from the bulk storage to active FBA fulfillment centers, so you (hopefully) never run out of stock on the digital shelf. The process of moving inventory from AWD to FBA involves creating an FBA shipment and following the associated steps for preparation and dispatch. And if you have inventory there and you make a sale on another platform (say your Shopify store), Amazon can ship it from AWD to the customer; this is part of the “distribution to non-Amazon channels” promise, supporting various distribution channels and enabling multi-channel distribution for sellers.

Managing AWD is done through your Seller Central account, where you can use the AWD page to enroll, create shipments, and oversee inventory. You can track shipments and track replenishments directly within Seller Central, ensuring smooth inventory flow and order status updates.

In short, AWD is Amazon acting as your warehouse and distribution hub, not just a fulfillment center for each individual order. It’s like creating a two-tier inventory system: Tier 1 is AWD for cheap long-term storage, Tier 2 is FBA for fast order fulfillment.

With the definition out of the way, let’s dive into the benefits of Amazon AWD, followed by the disadvantages or limitations to consider.

Benefits of Using Amazon AWD

1. Lower Storage Costs (Especially for Long-Term): Storage fees in AWD are significantly cheaper than standard FBA storage fees. Amazon advertises simple pay-as-you-go pricing around $0.42–$0.48 per cubic foot per month for base storage. AWD cost is structured with two tiers: a base rate applies if you provide your own shipping, while integrated rates are available when using Amazon’s partnered carriers like AGL or PCP. That’s roughly half or even a third of what FBA might charge during peak season (Q4 FBA storage for standard items can be $2.40 per cubic foot/month!). Plus, there are no additional costs or hidden fees beyond the basic charges for inventory storage and shipping. No seasonal surcharges; AWD’s rate is steady year-round, and there are no extra fees during the holiday season, unlike some other services. For sellers, this means you can stock up on inventory (for example, buying in bulk or manufacturing larger batches for cost savings) and park the excess in AWD without hemorrhaging money in storage fees. It’s designed for bulk, long-term storage, so it’s ideal if you have, say, six months of inventory but only two months can comfortably sit in FBA before incurring long-term fees. With AWD, you reduce those dreaded aged inventory surcharges because you won’t leave items in FBA for 12+ months, and you keep the overstock in AWD until needed.

2. Automatic FBA Replenishment (Never Go Out of Stock): Perhaps the biggest operational perk is auto-replenishment. Amazon uses a data model to monitor your FBA inventory levels and will proactively transfer stock from AWD into FBA fulfillment centers to meet demand. Even during busy seasons, they claim that inventory in AWD is considered “in stock” and buyable, because they’ll make sure it flows into FBA as needed. This is huge for avoiding stockouts. If you’ve ever had Amazon limit your FBA restock quantities, you know the pain of inventory capped during a surge in sales. With AWD, anything sitting in their bulk storage doesn’t count against your FBA storage limits. They can drip-feed it in as you sell through, effectively giving you elasticity in inventory. Think of AWD as a buffer; you keep selling, Amazon keeps your Prime-ready stock topped up from the reserve. No frantic monitoring of FBA stock and emergency shipments; it’s more “set it and let Amazon manage it” for replenishment. This can also potentially allow you to take advantage of manufacturing economies (producing larger quantities less frequently) without risking long out-of-stock gaps.

3. Simplified Inbound Logistics (Amazon Handles Distribution): When you send a shipment to AWD, Amazon will handle distributing that inventory to various fulfillment centers when the time comes. That means you might avoid the hassle of creating multiple FBA inbound shipments to different FCs or paying extra for Amazon’s Inventory Placement Service. AWD pricing includes FBA inbound placement, so you send it all to one AWD warehouse, and Amazon moves it internally to where it needs to go for fulfillment. This can save on transportation costs and complexity. Amazon likely uses its network of trucks, and possibly its partnered carriers at negotiated rates, to shuttle goods around. For sellers, that’s less micromanagement. It also could mean if you have a product that will eventually need to be in, say, East Coast and West Coast fulfillment centers, you can just send a big pallet to one place (perhaps closer to your supplier or port to minimize your freight cost) and Amazon will later distribute to multiple centers. It’s a more streamlined operation for you.

4. Multi-Channel Fulfillment from One Pool: Because Amazon AWD can also serve non-Amazon channels, you don’t have to split inventory for different sales platforms. For example, without AWD, you might keep some stock in FBA for Amazon sales and other stock in a 3PL or your own warehouse for, say, your website orders or Walmart Marketplace. With AWD, you could, in theory, put all inventory in Amazon’s warehouse and fulfill all orders from there. Amazon explicitly says you can “expand to non-Amazon sales channels quickly and easily” using AWD. So, if you get an order on Shopify, Amazon can pick, pack, and ship it from your AWD inventory to that customer (via their Multi-Channel Fulfillment service). You get a single inventory pool, which reduces the need for “safety stock” in multiple locations. Less safety stock means less total inventory holding, which means less capital tied up, another financial benefit.

5. Fully Integrated with Amazon Systems: Managing AWD is done through Seller Central, like other FBA inventory. This means your inventory tracking, shipments, and reporting are all in one place. There’s no new software to learn. It’s designed to be an extension of FBA, so it’s fairly plug-and-play if you’re already FBA savvy. Also, since Amazon handles it, you trust their expertise: inventory is stored in Amazon’s own distribution centers, presumably with good security and handling. Some sellers also feel more comfortable having Amazon in charge end-to-end (fewer third-party dependencies). Additionally, Amazon offers some nice perks like no long-term storage fees in AWD (as of now) and the ability to remove or dispose of inventory from AWD if needed (should you decide to recall stock or whatever, though removal fees would apply). Essentially, AWD is Amazon becoming your 3PL, but with deeper ties into FBA than any external 3PL could have.

Those are some pretty compelling benefits: cost savings, smoother operations, and potentially sales growth from always being in stock and reaching more channels. But nothing comes without trade-offs. Let’s examine the flip side.

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Disadvantages and Limitations of Amazon AWD

1. Additional Fees and Fulfillment Costs: While storage is cheap, AWD isn’t completely free of costs. You pay handling fees, for example, there’s an inbound processing fee and an outbound processing fee per box or pallet, and a transportation fee per cubic foot to move inventory around. These are not exorbitant, but they add up. Moreover, when Amazon fulfills an order from AWD (say, an off-Amazon order), the per-unit fulfillment fee is exorbitantly higher than FBA’s fee for the same order. Why? FBA’s fulfillment fee is optimized for when inventory is already in the fulfillment center, ready to ship. If something is sitting in AWD and needs to go straight to a customer, Amazon might treat it differently and you might end up paying the multi-channel fulfillment (MCF) fee, which can eat into margins, especially on low-cost products. In essence, you save on storage but could pay more when it comes time to ship units out to customers from non-Amazon channels. For Amazon marketplace orders, inventory ideally will be transferred to FBA first (where normal FBA fees apply). But if that transfer doesn’t keep up perfectly and Amazon ever directly fulfills from AWD stock, it might cost more. So, sellers need to analyze the total cost: storage + inbound/outbound + transport + eventual fulfillment = is it still a win vs. storing myself or using a 3PL?

2. Less Control and Flexibility: When you hand over a large chunk of inventory to Amazon’s AWD, you’re essentially putting your goods completely in Amazon’s hands even before they’re needed for FBA. This comes with some risk. If Amazon has an error, damage, or loss in the AWD warehouse, you’d expect reimbursement (like FBA), but it’s another potential point of issue. More importantly, if something goes wrong with your Amazon selling account (suspension, etc.), your inventory is deep in Amazon’s system. While you can create removal orders from FBA normally, note that you cannot move inventory from FBA back into AWD, and vice versa; you’d have to remove to yourself, then to AWD if you wanted to reposition. Amazon even states that AWD facilities store items differently (bulk) and are not individually accessible like FBA. So, flexibility is reduced. If you suddenly need inventory back (say you want to send to a physical store or switch 3PLs), pulling from AWD might be slower or more cumbersome than from your own storage. There could also be processing lags, e.g., how fast do they check in shipments to AWD? If it’s anything like FBA, you can expect delays. And how quickly do they move stock from AWD to FBA when signaled? It should be smooth, but you’re on Amazon’s schedule. Essentially, you sacrifice direct control over your inventory’s movement.

3. Product Eligibility Constraints: As of now, AWD only accepts standard-size products, not oversized items. If you sell large or heavy products (like furniture, large appliances, etc.), AWD might not be available for those. This immediately limits who can benefit. Also, certain categories might be excluded or limited (for example, I suspect dangerous goods/hazmat items are not allowed in AWD, similar to how many 3PLs or Amazon’s own policies work). If you have items that require special storage conditions (climate control, etc.), Amazon might not support that either. So some sellers will find they can’t put all their catalog into AWD even if they wanted to. You’d have to maintain your own storage for those exceptions, which complicates your logistics if you hoped to consolidate everything with Amazon. Additionally, Amazon is still expanding this program; it might not have warehouses in every country you sell in. Initially, I recall AWD was focused on the US. If you sell in the EU or other regions, a similar service might not exist yet, or you’d have to use separate regional AWD programs. So it’s not a universal solution globally at this time.

4. Limited Value-Added Services (Prep, Kitting, etc.): Traditional 3PLs often offer services like labeling, poly bagging, kitting bundles, quality inspections, and so on. AWD, however, doesn’t offer as many additional services as FBA or a typical 3PL. For instance, if your products arrive needing FNSKU labels or other prep, Amazon expects those to be done beforehand (just like sending to FBA, you must prep according to their requirements). They won’t, for example, kit two SKUs into a bundle for you at AWD or do custom packaging inserts. FBA at least has some prep services (for a fee) like labeling or polybagging; AWD does not have any such option. So, AWD is fairly bare-bones: storage and moving boxes. If your supply chain relied on a warehouse doing last-minute assembly or swaps, you can’t do that in Amazon’s bulk storage. AWD also does not provide customer service; its focus is strictly on storage and distribution, not on handling consumer interactions or support. So, sellers with more complex needs might still need a 3PL for those services, diminishing the benefit of AWD.

5. Potential Delays in Fulfillment vs. Direct FBA: While auto-replenishment is great, there’s a question: what if you get a sudden spike in sales? Can Amazon move stock from AWD to FBA fast enough to not miss sales? They claim inventory in AWD is considered in stock when auto-replenish is on. It suggests Amazon might actually allow the item to be purchased even if only in AWD, and then they’ll transfer it and ship it. If that’s the case, maybe no delay (customer wouldn’t know). But if they don’t do that, a spike could mean you sell out at FBA, and while waiting for AWD transfer, you’re effectively out of stock for Prime sales for a day or two. Also, removing stock from AWD to send elsewhere isn’t instantaneous. If you suddenly have a wholesale order and need 1000 units back, a removal order from AWD might take some time to process and ship back to you, to then forward on to the buyer.

6. Commitment and Forecasting: Using AWD requires you to decide to send a larger chunk of inventory in. If you mis-forecast and send way too much of a dud product, now it’s sitting in Amazon’s warehouse, incurring storage fees (albeit low ones, but still). With FBA alone, you might have sent in less and could keep the bulk at your place for free (or for cheaper storage if you have space). So if a product doesn’t sell as expected, AWD could become a semi-long-term holding cost. Granted, it’s cheaper than FBA long-term fees, but it’s something to monitor. You don’t want AWD to become a dumping ground for bad inventory just because storage is cheap; that can still add up and hurt profits. Eventually, Amazon could also implement its own version of long-term fees if people abuse it as an indefinite storage solution. Right now, no additional holiday fees are great, but note: they have announced some fee changes for 2025 and beyond (rumor has it base rates might increase or they’ll push “smart storage” contracts). For instance, sources mention that as of late 2025, Amazon plans to raise AWD storage fees somewhat (perhaps to encourage faster turn or to cover costs). So keep an eye on Amazon announcements, the economics of AWD might shift over time as Amazon fine-tunes the service and pricing.

7. “All Eggs in One Basket” Syndrome: This is more of a philosophical drawback. Relying on Amazon for yet another aspect of your business increases your dependency on them. If there’s an AWS outage (not unheard of) or a strike or restriction at Amazon warehouses, both your FBA and AWD inventory could be affected. Some sellers prefer a diversified approach: maybe Amazon handles FBA, but they keep some stock in a separate warehouse to sell on other channels or as a backup. By moving all inventory to Amazon-run facilities, you trust their uptime and policies entirely. For instance, if Amazon suddenly changes a policy about what can be stored or raises fees unexpectedly, you have to scramble. With your own or third-party storage, you might have a bit more flexibility to pivot. It’s something to consider, although Amazon generally is reliable, any single point of failure in the supply chain can be a business risk.

AWD vs. Other Solutions: Compared to Amazon FBA, AWD is designed primarily for bulk storage and inventory distribution, not for direct order fulfillment or value-added services. Amazon FBA, on the other hand, handles the entire fulfillment process, including picking, packing, shipping, and even some customer service for orders. AWD does not provide customer service or direct fulfillment to customers; it is best used as a storage and distribution hub to support FBA or other channels. This distinction is important for sellers evaluating which solution best fits their needs.

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How Cahoot Solves Amazon AWD’s Limitations

While Amazon Warehousing and Distribution (AWD) offers clear advantages for sellers deeply embedded in the FBA ecosystem, its limitations are real, especially when it comes to multi-channel flexibility, visibility, and cost control. That’s where Cahoot comes in.

Cahoot’s peer-to-peer fulfillment network gives merchants more control over inventory placement without being locked into one fulfillment model. Unlike AWD, where you may not know where your inventory will land (or how it’s handled), Cahoot provides predictable warehouse-level transparency and tools to strategically distribute inventory based on demand signals across all your channels, not just Amazon.

Cahoot is also designed for multi-channel commerce from day one. Whether you’re selling on Shopify, Walmart, eBay, or your own DTC site, Cahoot routes orders intelligently, provides unified inventory visibility, and helps you scale with less complexity. No more separating inventory pools or manually uploading replenishment shipments just to stay compliant.

And when it comes to fees and cost control, Cahoot eliminates the “black box” pricing surprises many sellers face with AWD’s long-term storage and handling charges. With Cahoot, pricing is transparent, fulfillment is fast, and returns are built right in, all on a single connected platform that grows with your business, not just with Amazon.

AWD may be a step forward in bulk storage convenience, but for agile, brand-first sellers looking to scale smarter, Cahoot fills in the gaps, and then some.

Final Thoughts

In summary, Amazon AWD offers a lot of benefits for FBA sellers: cost-effective storage, automated replenishment, and simplified multi-channel logistics. It essentially extends Amazon’s fulfillment network to cover the upstream warehousing piece. This can help you scale, keep products in stock, and possibly save money versus using only FBA or outside warehouses. However, it’s not without disadvantages: you’ll pay some fees and higher fulfillment costs here and there, you give up a measure of control, and it may not accommodate every product or service need.

It’s also not all-or-nothing. You could use AWD for some SKUs or some portion of inventory and not for others. For example, maybe use AWD for your fast-moving ASINs where you constantly need a pipeline of stock into FBA, but for slower sellers or oversized items, you keep those in your own storage or a 3PL warehouse.

One thing is clear: Amazon is pushing towards being a one-stop logistics provider for sellers. From the manufacturing plant (with Amazon Global Logistics and Amazon’s partnered carrier program) all the way to the customer’s doorstep, they want to handle everything. Amazon Global Logistics can bring your containers from China, AWD stores your pallets, then FBA delivers to customers, and even handles customer service. It’s an attractive proposition if the numbers make sense. Many sellers will find it efficient, while others might worry about being too entangled with Amazon.

As with any strategy, consider a trial. Maybe send a small batch to AWD and see how it goes, measure the costs over a few months vs. your current solution. See if stock flow is smooth and if your total cost per unit sold improves. Also, monitor how AWD inventory appears in your dashboard and reporting, so you understand the mechanics.

At Cahoot, we’re all about smart fulfillment strategies (our whole model is about collaborative fulfillment to lower costs and increase speed). We understand the importance of getting products to the right place at the right time affordably. Amazon’s AWD is one intriguing approach to that problem for Amazon-centric businesses. It might not fit everyone, but it’s something FBA sellers should examine as part of their operational toolbox.

In the end, the benefits of Amazon AWD, cheaper bulk storage, seamless replenishment, and multi-channel reach, can be a strong proposition if your business aligns with it. Just go in with eyes open about the limitations, such as product eligibility and the costs of handing Amazon even more control. If used wisely, AWD could help you scale your ecommerce business more efficiently, keep those Prime customers happy with in-stock items, and maybe save a nice chunk of change on storage and logistics. And if it’s not for you, there are always alternatives like traditional 3PLs or networks like Cahoot to achieve similar goals. The key is to ensure your inventory management and distribution strategy support your sales ambitions without draining profit. AWD is one more potential tool in that quest.

Frequently Asked Questions

What is Amazon AWD?

It’s Amazon’s bulk storage and distribution network for FBA inventory.

How does AWD lower costs?

By offering cheaper long-term storage separate from standard FBA centers.

What’s the downside of AWD?

Less control over inventory visibility and slower replenishment speed.

Is AWD good for fast-moving products?

Not really, it’s better for bulk or seasonal stock that doesn’t need quick turnover.

Can AWD help with Q4 and holiday spikes?

Yes, by pre-staging inventory in cheaper bulk facilities ahead of the rush.

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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Amazon Vine Reviews Are Now Allowed Pre-Launch (July 2025 Update)

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Imagine launching a brand-new product on Amazon, and on day one, it already has a full page of glowing reviews. Sounds almost too good to be true, right? Well, Amazon just flipped the script for sellers. As of July 1, 2025, the Amazon Vine program got a major upgrade. Vine Voices (Amazon’s invite-only community of top reviewers) can now post product reviews before your listing even goes live. In other words, eligible products can launch with up to 30 real Amazon customer reviews on day one, and these reviews are immediately visible to Amazon customers, giving shoppers instant insight and confidence. This is a huge deal for Amazon sellers looking for an early boost in conversion, ranking, and customer trust.

What Is Amazon Vine (and How Did It Work Before 2025)?

For those not familiar, Amazon Vine is a program where a select group of trusted reviewers, called Vine Voices, receive free products from Amazon sellers or brands in exchange for writing honest, unbiased, and insightful reviews. These Vine members are not paid (aside from the free item) and are chosen based on their reviewer rank and past helpful votes from the Amazon community. Reviewers are invited to join the Vine program based on their review activity and reputation. Once invited, reviewers must accept the invitation to participate in the Vine program. Consistently buying things on Amazon and leaving detailed reviews can increase a customer’s chances of being noticed and eventually invited to the Vine program. The goal is to generate high-quality reviews that help other customers make informed buying decisions. Vine has been around for quite a few years (since the late 2000s), originally as an invite-only club for top reviewers.

In the past, Amazon Vine was available only to 1P vendors, but in recent years, Brand Registered 3P sellers have also been allowed to participate through Seller Central, provided their listings met Amazon’s criteria. But it wasn’t cheap; Amazon used to charge a hefty fee (around $200 per ASIN for many sellers) to participate. You’d create a new listing, enroll it in Vine, and then wait. Vine reviewers would claim the product, get it shipped for free, and then post a review after trying it out. However, those reviews would only appear post-launch (once your listing was live and the Vine member submitted their feedback). This meant new products often spent days or weeks with zero reviews until Vine Voices or early buyers chimed in. Sellers often had to hold off on big marketing pushes (like PPC ads) because a product with no reviews is a tough sell; most shoppers won’t even consider a product if nobody’s vouching for it. In fact, one analysis found that displaying at least five reviews can increase conversion rates by up to 270%, which shows how critical initial reviews are for buyer confidence.

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What Changed in July 2025? (Pre-Launch Reviews are Live!)

The big news is that Amazon now allows Vine reviews to be posted before a product’s public launch. This means you can have a full roster of reviews ready to go the moment customers first see your listing. Here’s how it works in practice:

  • You create your Amazon listing but keep it in a “not yet live” state.
  • Enroll that ASIN into the Amazon Vine program through Seller Central (it must be an FBA item in new condition, with fewer than 30 existing reviews, and you need to have a Professional seller account with Brand Registry).
  • Specify the quantity of units (typically up to 30) you want to make available for review, and provide products to Vine reviewers by sending these units for them to test.
  • Vine reviewers request your product, receive the free product shipment, and start testing it out immediately.
  • These Vine members can then write their reviews before the product is available to the general public. Amazon holds those reviews in a queue.
  • When you’re ready, you “flip the switch” to make the listing live for sale, and bam! All the Vine reviews that were written pre-launch become visible on your product page from day one.

Pretty cool, right? It’s essentially seeding your new product with social proof right out of the gate. Previously, reviews had to be gathered after launch, which delayed that crucial social proof and made launching a new ASIN feel like pushing a boulder uphill. Now, with Vine pre-launch reviews, Amazon sellers can start with momentum. By providing products and specifying the quantity for Vine, you can receive reviews from Vine members before your product is available to the general public. Imagine launching with 25 – 30 reviews that are labeled as “Vine Voice,” customers immediately see that real people have tried the product and shared their thoughts. This can only help conversions. Amazon itself touts that using Vine can boost sales by up to 30% for new launches (and that stat might climb higher now that the reviews can appear sooner).

A Boost for Conversion and Ranking

From a conversion optimization standpoint, this change is gold. Early reviews mean higher conversion rates because shoppers feel more confident. Instead of being the dreaded “zero-review” product that people skip over, your item has a healthy chunk of feedback. Social proof drives behavior; a shopper is far more likely to buy something that already has, say, 25 reviews and a 4.5-star rating versus a blank slate. There’s even evidence that just having a handful of reviews dramatically increases the likelihood of purchase (remember that five reviews = +270% conversion stat). Now you can potentially have those five (or twenty-five) reviews immediately. Early Vine reviews can also highlight key features, answer questions, and add photos or videos. Many Vine Voices write very detailed reviews, sometimes even uploading unboxing pics or demo videos, which can enrich your product page content. Vine reviewers often post their feedback within a week of receiving the product, helping to build early momentum for your launch. All of this not only convinces customers but also feeds Amazon’s algorithm, products with more engagement (reviews, Q&A, etc.) tend to get a boost in search ranking. It’s like jumping to level 5 while your competitors are starting at level 1.

However, there’s a flip side: Vine reviews are unbiased and not guaranteed to be positive. Vine members are asked to give honest opinions. If your product has flaws or doesn’t meet expectations, Vine Voices will call it out. This is risky if you rush a product that isn’t ready for prime time. The last thing you want is 10 bad reviews at launch because that can tank conversion just as fast. Even a single negative review from a Vine reviewer can significantly impact a seller’s life and business trajectory, affecting both reputation and future sales. So, while it’s tempting to enroll every new item in Vine, smart sellers will make sure the product is solid and the listing details are accurate to set reviewers’ expectations correctly. The Amazon Vine program isn’t about churning out good reviews; it’s about getting accurate and insightful reviews quickly. The hope is they’re positive, but they’ll be honest above all. In our experience, Vine Voices often provide balanced feedback, usually positive if the product delivers value, with constructive criticism if not. They have no reason to “spam” or slant things because their Vine status can be revoked if they abuse the program. (Remember, Vine members are selected by Amazon and want to maintain a good standing. Their reviews are marked with a special badge, and other customers can vote if the review was helpful, so Vine reviewers strive to be fair and thorough, not to mention they’ve been doing this for years. As a trusted source, feedback from Vine reviewers can shape a product’s reputation and influence its success.)

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Who Can Use Vine Now? (It’s Not Just Brand Owners Anymore)

Another notable change is who’s eligible to enroll products in Vine. Historically, only brand owners (sellers with their brand in the Amazon Brand Registry) or vendors could use Vine. But Amazon has quietly expanded access. Now, authorized resellers can also participate in Vine for a brand’s products if they meet certain criteria. Essentially, if you’re a reseller who has been added as an official Brand Representative or Reseller on a brand’s Amazon account (via Brand Registry), and you have a Pro seller account with FBA, you can enroll that brand’s ASINs into Vine. Selling on Amazon is now more accessible for resellers who want to leverage Vine reviews to promote and gather feedback on their products.

This is a pretty big shift. It means brands can partner with their key third-party sellers to share the cost and effort of generating reviews. For example, if you distribute your product to a few authorized sellers, those sellers could volunteer to enroll new ASINs in Vine (spending their resources to give away units) to help kickstart sales for both of you. Amazon’s essentially saying, “We’ll allow more players to help get authentic reviews on new products.” The reviews still attach to the product (ASIN), not to any one seller, so it benefits the whole listing. From a brand perspective, that’s great—less pressure for you to do all the work for every new launch. From the reseller perspective, it’s a way to add value and potentially secure more buy box time if you help a product succeed (plus you’ll likely coordinate with the brand on this). The Amazon site serves as the central platform for coordinating these reviews and selling activities. It’s a win-win as long as everyone’s aligned.

How Does Pre-Launch Vine Compare to the Past?

Let’s put this into perspective. Previously, launching a new product meant you either crossed your fingers for organic reviews (slow and painful), or you enrolled in Vine and waited a few weeks post-launch to accumulate maybe 5 – 20 Vine reviews, or perhaps you used other programs (like Amazon’s Early Reviewer Program, which was discontinued in 2021). It always felt like a race to get that first review. Many sellers felt stuck because a product with zero reviews rarely gets purchased, but to get reviews, you need purchases—a classic chicken-and-egg problem. Vine was one solution, but it wasn’t instant.

Now, Amazon has essentially removed that lag. You can start day one with social proof in place. That’s a huge competitive advantage. It’s almost like having a built-in base of customer testimonials at launch. This drastically changes launch strategies. Sellers can confidently run ads immediately, knowing they have some review credibility. You can drive external traffic without fear that shoppers will bounce when they see “No reviews yet.” It’s also a confidence booster for the seller; launching is less scary when you’re not starting from zero.

From the buyer’s side, shoppers might not even realize the reviews were pre-launch Vine reviews; they’ll just see that green Vine Voice tag and presumably think, “Oh, someone in the Amazon community reviewed this.” Many savvy buyers know the Vine badge means the reviewer got the item for free, but they also recognize that Vine reviews tend to be detailed and genuine, not the one-liner spam reviews you sometimes see. Over the years, Amazon Vine reviews have a reputation for being thorough (often lengthy, with pros and cons listed). Many Vine Voices wrote detailed feedback that contributed to the program’s credibility. Still, some shoppers may wonder about the authenticity of reviews, especially with the prevalence of fake reviews. Amazon has sometimes been unable to fully prevent fake or biased reviews, which is why programs like Vine are important. In theory, that quality should remain high because Amazon still controls who gets to be a Vine Voice.

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Tips for Sellers: Making the Most of Vine’s New Powers

If you’re planning to use Vine’s new pre-launch feature, here are a few tips and insights:

  • Ensure your product is ready: Don’t treat Vine as a magic bullet for a mediocre product. Vine reviewers will call out issues. You want those first 20 – 30 reviews to be overwhelmingly positive, if possible. Make sure you’ve tested your product, your quality control is on point, and your listing description is accurate (so Vine members aren’t surprised by anything). Using high-quality materials is crucial to avoid negative feedback and ensure durability, which can lead to better reviews and customer satisfaction. The Vine community has been around a long time; they’ve seen it all, and they will notice if something’s off.
  • Time your Vine enrollment strategically: Ideally, you want Vine reviews to come in right around your target launch date. Vine reviewers typically post within a couple of weeks of receiving the product (some are quicker). It might make sense to enroll in Vine and ship units maybe 2 – 4 weeks before your intended “go live” date. That way, by the time you make the product available for sale, a chunk of Vine reviews are already written (or will be written soon). You can technically launch as soon as one Vine review is in (even one review is better than zero, sometimes one review can make the difference for that first shopper). But waiting until you have, say, 10+ reviews ready could make a stronger splash.
  • Leverage the momentum: Once you launch with Vine reviews, capitalize on it. Ramp up your advertising (since now your ads show a product with a star rating), consider promotions, and monitor your conversion rate. You might find you can charge a premium price if those early reviews are stellar, because the value of social proof is significant. Also, those first reviews can reveal any common questions or minor cons that you can address quickly (either by updating your listing copy or in a future product iteration).
  • Stay within Amazon’s rules: Vine is Amazon-sanctioned, but that means you need to stick to the program guidelines. Don’t try to influence Vine reviewers (no reaching out to them to beg for a 5-star rating, a big no-no). Also, you have to eat the cost of those free units and the Vine enrollment fee (if any). The good news is Amazon has made Vine more accessible cost-wise, as of 2025, new Brand Registry sellers get a $200 Vine credit and can enroll up to 2 products for free. Additional enrollments might cost a nominal fee (much less than $200 in many cases). Always check the latest Vine fee structure in Seller Central.
  • Monitor the outcomes: Keep an eye on how those Vine reviews perform. Are they getting “helpful” upvotes from other customers? A review with many helpful votes will rise to the top of your review section, becoming the de facto first impression. Vine Voices often write “insightful reviews” that others mark as helpful, which is great. If a Vine review highlights a product improvement, consider commenting on it or actually making that improvement. Showing that you’re attentive to feedback can turn a potentially negative point into a positive for future customers reading the reviews. Be prepared to handle refund requests if Vine reviews reveal significant product issues, as managing refunds promptly can help maintain your seller reputation. If you encounter problematic or inappropriate reviews, remember you can report them to Amazon for review and possible removal.

Final Thoughts

In summary, Amazon’s new Vine update is a game-changer for launching products. It levels the playing field a bit between new entrants and established products. Now, even a brand-new ASIN can look seasoned from day one. It’s not an exaggeration to say this could be one of the most impactful changes to Amazon’s review ecosystem in years. We’re pretty excited about it (as you can probably tell). It aligns with Amazon’s push to help trusted brands and sellers hit the ground running, while still providing accurate and insightful reviews for customers.

As ecommerce operators, we live and die by reviews and customer trust. Seeing Amazon allow pre-launch reviews is like getting a head start in a marathon. You still have to run a good race (i.e., have a good product, good marketing, and all that), but at least you’re not starting 50 yards behind the line with a blindfold on. Take advantage of this if you can. And if you need help strategizing your launch or managing the logistics (after all, once those orders roll in, you’ve got to fulfill them seamlessly, that’s where Cahoot can help on the fulfillment side), don’t hesitate to reach out to experts or partner services.

Happy launching, and may your new products rack up Vine reviews and sales in record time!

Frequently Asked Questions

What’s changed with Amazon Vine in July 2025?

Sellers can now get Vine reviews before a product goes live, giving listings a major head start.

How many reviews can you get before launch?

Up to 30 Vine reviews can be posted pre-launch.

Why do pre-launch reviews matter?

They improve conversion rates, boost search rankings, and create early trust.

Do Vine reviews cost money?

Sellers provide the product for free, but Amazon charges a submission fee per ASIN.

Is Vine worth it for new products?

Yes, especially for higher-priced or competitive items where early momentum is crucial.

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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Luxury Brands on TikTok: How TikTok’s Influence Is Reshaping Luxury Retail

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When you think of luxury fashion, what comes to mind? Glossy magazines. Paris runways. $3,000 handbags. Today, luxury fashion brands are embracing new strategies on TikTok, adapting their traditionally exclusive image to connect with younger, digital-savvy audiences.

Now add this to the list: A teenager in sweatpants unboxing Louis Vuitton on TikTok while dancing to a trending sound.

Welcome to luxury in the age of TikTok, where Gen Z’s trust in fashion is built in 30-second videos, not storefronts. And it’s not just an aesthetic shift, it’s reshaping retail, ecommerce, and how consumers decide what’s worth their money, as the social platform continues to redefine the landscape of luxury retail.

Luxury Brands on TikTok: From Reluctant to Ready

For years, luxury brands avoided TikTok like it was fast fashion. Too noisy, too chaotic, too “off-brand.” But as the luxury space evolves, TikTok is changing how these brands connect with new demographics and build cultural relevance.

But the tide has turned, and not just for views.

Brands like Louis Vuitton, Gucci, and Fenty Beauty are now leaning into TikTok strategy, developing innovative strategies to engage audiences and drive brand awareness. These luxury brands and other premium brands are leveraging TikTok’s unique features to create engaging posts that resonate with their target audiences. Their success is evident in increased engagement rates, higher visibility, and a stronger connection with younger consumers. This shift marks a new mindset for the luxury brand world, as even established fashion brands are adopting TikTok to showcase their collections and personalities.

Why?

Because the average engagement rate on TikTok is over 5%, it dwarfs other platforms, especially when brands focus on engaging content and creative posts. Because Gen Z audiences don’t want to be sold to, they want to be in on the moment. Because TikTok users treat brands as characters in a shared story, not distant monoliths, and brands are tailoring their content to these audiences for maximum impact.

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Gen Z Trusts TikTok More Than Traditional Retail

A growing number of young people don’t trust billboards or brand websites. They trust when a user comments, “this bag is worth it” on a GRWM video, seeing it as authentic engagement.

This isn’t just “social proof,” it’s social curation. TikTok creators become tastemakers. They translate luxury fashion into something relatable, even aspirational, again, for an audience who grew up during economic uncertainty. The interest generated by TikTok content drives higher engagement and sales, as customers are drawn in by rising curiosity and platform popularity.

Brands are increasingly listening to their customers, using feedback and reviews to shape brand perception on TikTok. Understanding customer preferences and sharing educational content helps build loyalty and makes luxury products more accessible and desirable.

It’s less “here’s a product” and more “here’s how this product makes me feel.”

Physical Footfall Meets Digital Discovery

Surprisingly, TikTok isn’t just fueling online sales. It’s driving physical store visits, too.

Fashion-savvy users are tracking down items they saw in TikTok hauls. They’re walking into stores asking for the “bag that was in that one TikTok.” It’s a full-circle effect: video to vibe to visit to value.

For retailers, this is a goldmine if you’re tracking where that foot traffic originates. A key point here is the importance of integrating your POS, ecommerce, and social data; if these are siloed, you’re flying blind.

For Ecommerce Operators: What This Means

Let’s talk tactics. If you run an ecommerce brand, luxury or not, here’s what TikTok is teaching us: Having a clear social strategy is essential for success on TikTok, guiding your approach to content creation, engagement, and brand positioning. Focus on creating content that resonates with TikTok audiences by leveraging trends, challenges, and authentic storytelling. Don’t just rely on influencers; producing your own content, such as branded videos and behind-the-scenes clips, can help boost your brand’s presence and connect directly with your audience.

1. Authenticity Beats Polish

Forget hyper-produced ads. On TikTok, creativity is a key driver of authentic content that resonates with audiences. Content that performs is real, messy, and human. Brands can engage with their audiences by creating content that feels real and relatable, think user-submitted videos, founder behind-the-scenes, and imperfect moments.

2. Your Creators Are Your Retailers

TikTok creators don’t just create, they convert. Influencers, including both celebrities and micro-influencers, play a crucial role in driving sales and building brand awareness through authentic partnerships. A shoutout from a mid-tier creator or influencer can outperform paid ads. Brands often collaborate with models as part of their influencer marketing strategies to enhance authenticity and visibility. Build relationships, not just sponsorships. Let them interpret your brand in their own voice.

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3. Your Product Needs a Narrative

“Luxury” used to be exclusivity, with brands offering exclusive products or experiences to create a sense of rarity and prestige. Now, it’s emotional resonance. Why does your product matter? What moment does it fit into? Even a premium brand needs storytelling that makes sense to both the brand and its audience. Content should create a sense of alignment with brand messaging, ensuring that every narrative feels authentic and contextually appropriate.

4. Cross-Platform Matters

Your TikTok may go viral, but if your site can’t support discovery, if your return policy is confusing, or if delivery is slow, you’ll lose them. Seamless post-click experience is everything, and maintaining consistent quality across every touchpoint is essential to building trust and meeting luxury consumer expectations.

TikTok Is a Platform, but It’s Also a Lens

TikTok isn’t just influencing marketing. It’s redefining what luxury means.

Today’s luxury consumers want:

  • Transparency
  • Accessibility (without dilution)
  • Fun
  • Community

The TikTok community and various niche communities on the platform play a crucial role in shaping brand engagement, as users actively participate in trends and content sharing. Luxury brands like Fenty Beauty and Gucci have embraced TikTok as a creative playground, not just a conversion funnel, and have built a huge following by showcasing their products and campaigns through innovative videos and live events. These brands have created unique experiences and content that resonate with the TikTok community, often providing examples and case studies, such as Gucci’s playful irreverence or Fenty’s authentic approach, to illustrate successful campaigns. For example, luxury watch brands like Breitling have used TikTok to watch their brand identity grow by incorporating watches into relatable, humorous content. A brand’s strategy and personality are key, allowing it to establish itself in its own right and stand out from traditional perceptions of luxury. To maintain engagement and visibility, brands are producing more videos based on fan interactions and trending topics, further strengthening their connection with diverse communities.

The result? Relevance. And often, revenue.

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Ecommerce Is Now Entertainment

If you sell online and you’re not treating your content like entertainment, you’re already behind.

Yes, that includes you, even if you sell $600 loafers or heritage handbags. TikTok content works because it feels human. It feels like someone sharing a secret, not shouting a slogan.

The fashion industry is rapidly adapting to TikTok, using the platform to engage new audiences and stay culturally relevant. There is a growing interest in luxury brands on TikTok, with users increasingly drawn to content that highlights the unique value of designer goods compared to high-street fashion. For many consumers, purchasing luxury items is seen as an investment, both in terms of quality and long-term value.

That shift, from advertising to authenticity, is what’s catching luxury brands off guard… and transforming how younger consumers discover, trust, and buy.

Final Take: Don’t Chase Trends. Build Culture.

TikTok isn’t just about what’s trending today. It’s about how culture moves. What Gen Z values today, transparency, personality, and fluidity, will shape the next decade of ecommerce. Last year, TikTok saw explosive growth, becoming a key platform for audience acquisition and engagement.

Brands are leveraging viral trends, such as the #guccimodelchallenge, to boost engagement and visibility. Some luxury brands are taking a low-key approach to TikTok marketing, maintaining an understated presence that preserves brand elegance while still engaging authentically.

If you treat TikTok like another ad channel, you’ll miss it. If you treat it like a cultural mirror, you’ll find opportunities no spreadsheet could predict.

A notable example is Louis Vuitton’s appointment of Pharrell Williams as men’s creative director, which has driven cultural relevance and trendsetting through high-profile collaborations and influencer campaigns on TikTok.

The brands winning on TikTok aren’t just “on the app.” They’re in the community. They’re part of the conversation. And they’re learning that luxury doesn’t mean exclusivity anymore, it means belonging to the right story.

Frequently Asked Questions

Why are luxury brands using TikTok now?

Luxury brands are using TikTok to connect with Gen Z shoppers, build community trust, and promote products in a relatable, story-driven format that traditional advertising can’t replicate.

How does TikTok impact Gen Z’s trust in fashion brands?

Gen Z users trust peer reviews and creator content more than traditional marketing. TikTok fosters transparency and emotional connection, which drives trust and purchase behavior.

Can TikTok drive in-store traffic for luxury retailers?

Yes, TikTok is influencing both online sales and physical footfall. Shoppers often seek out products in-store after seeing them featured in trending TikTok videos.

What can ecommerce brands learn from luxury TikTok strategies?

Even non-luxury brands can benefit by embracing authenticity, creator partnerships, and a content-first approach that mirrors how Gen Z shops and consumes media.

Is TikTok a reliable platform for ecommerce growth?

Yes, when used strategically. With high engagement rates and influence over buyer decisions, TikTok can significantly boost visibility and sales, especially for brands targeting younger audiences.

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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Amazon FBA Return Expert Service: Will It Actually Help Sellers?

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Amazon is finally acknowledging what Sellers have known for years, returns are eating them alive, a challenge that continues to impact profitability and operational efficiency.

Now, with its new invite-only FBA Return Expert Service, Amazon is offering what looks like a white-glove program designed to reduce return rates on high-priced ASINs.

But is this a real step toward helping sellers manage returns, or just another layer of optics wrapped in policy buzzwords? The FBA Return Expert Service presents new opportunities for sellers to transform return-related challenges into avenues for growth and increased profitability.

Let’s break it down. If these opportunities are leveraged effectively, sellers could unlock significant growth for their Amazon business.

What Is the FBA Return Expert Service?

In Amazon’s own words:

“Amazon’s new FBA Return Expert Service…is part of the invite-only FBA High Average Selling Price Program focused on selection over $50. Listing and Product Quality defects drive 60% of returns. Our focus is to help you in addressing these defects so that you can improve your returns performance, margins, and brand reputation while reducing your costs.”

Sellers accepted into the program are assigned a dedicated subject matter expert who is part of a specialized team focused on optimizing returns. This expert digs into ASIN-level return reasons and provides personalized coaching, data insights, and action plans, helping sellers optimize their internal processes for better returns outcomes. The expert’s approach is designed to improve efficiency by streamlining return management.

It’s proactive, not reactive, at least in theory. The service is designed to deliver personalized solutions for clients seeking to improve their returns processes.

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Why It Exists (And Why It’s Needed)

Let’s be honest: Amazon’s return policies are famously buyer-friendly, and often seller-hostile. These policies have a significant impact on Amazon business operations, affecting profitability and inventory management for sellers.

You don’t need to scroll far through r/FulfillmentByAmazon or Seller Forums to find frustrated merchants:

  • Customer-damaged items are auto-refunded without return, with customers initiating the return process
  • Used products re-sold as new by mistake
  • Abuse of “Item Not as Described” as a free rental system

Businesses of all sizes are impacted by high return rates. Most sellers see 10–20% return rates. For categories like electronics or fashion, it can go much higher. And as Amazon continues to optimize for seamless customer experiences, sellers are forced to absorb the cost.

Understanding and navigating Amazon’s policies is crucial for effective returns management, maintaining seller performance, and maximizing claim recovery.

So the FBA Return Expert Service is a nod to a reality Amazon helped create.

How It Works

While there’s limited public info (it’s invite-only), the core experience appears to include:

  • Data-driven return insights for high-return-rate ASINs, providing detailed analysis of FBA returns, including the processing of each returned item to assess its condition and outcome.
  • One-on-one coaching to reduce refund triggers
  • Quality audit support to address issues in listings, product packaging, instructions, and customer expectations
  • Assessment of the condition of returned items to determine if they are sellable or defective, ensuring accurate categorization for inventory management.

Amazon claims the program helps improve listing accuracy, reduce defects, and transform returns from a reactive fire drill into a strategic lever. As part of the workflow, the expert helps sellers select the best option for handling unsellable inventory, based on the condition of the returned items. For example, the expert might determine that a defective returned item should be disposed of, while a sellable item can be restocked.

And it ties into the broader High Average Selling Price Program, suggesting the focus is on items over $50, where the profit hit from returns is most painful.

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The Upside for Sellers

If it works as promised, this could be a win for sellers:

  • Amazon finally looking upstream at why returns happen, not just issuing reimbursements
  • Helps sellers recover profits on high-dollar SKUs
  • Encourages process control and brand quality versus playing catch-up with returns fraud
  • Offers a potential reduction in disposed inventory and fees
  • May help protect brand ratings and buyer trust
  • Helps sellers maximize revenue and recovery from FBA returns by identifying every eligible claim for reimbursement and refunds

The program can lead to increased reimbursement and refunds by ensuring every eligible claim is processed, helping sellers recover money and dollars that would otherwise be lost. Thousands of sellers have already benefited from this recovery, maximizing their financial outcomes.

And most importantly, it gives sellers something they’ve been begging for, a seat at the table when it comes to return policies. These benefits position sellers for future growth and help them achieve long-term success.

But… Proceed With Caution

This is Amazon, after all. There are real concerns:

  • Is the “expert” really a seasoned returns strategist, or just another Seller Support agent with a new badge?
  • Will insights be actionable or vague?
  • Will Amazon actually adjust its own auto-approval return policies, or just shift responsibility to sellers?
  • Will there be costs, performance thresholds, or stricter penalties if suggestions aren’t followed?
  • Could errors occur in the return process if the service is not implemented correctly, leading to mistakes or discrepancies?
  • Is there a risk of delays in processing returns or reimbursements, potentially impacting order fulfillment and customer satisfaction?

The FBA Return Expert Service might be an olive branch, but it could also become a compliance burden disguised as help. It’s important for sellers to be responsible in handling returns and ensure compliance with Amazon’s standards to maintain their reputation and operate ethically.

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The Bigger Picture: Managing Returns at Scale

Amazon reimbursements and return operations have become a business unit unto themselves for many sellers. From claims, audits, and customer complaints to managing unsellable inventory, it’s a constant drain. Implementing a seamless process for managing Amazon FBA returns allows sellers to handle large volumes efficiently, reducing operational headaches and improving overall workflow.

This is where sellers need more than just a new program, they need a new returns strategy.

  • Automate return tracking and auditing to optimize processes and ensure fast processing of returned items, so inventory can be restocked quickly and remain available as stock.
  • Sync warehouse verification with refund approvals for efficient handling of Amazon FBA returns.
  • Stop accepting loss as a default by maximizing reimbursements and minimizing losses through detailed audits and tracking.
  • Understand your true cost of returns at the ASIN level to support better decision-making for ecommerce brands and marketplace performance.

A dedicated team can help clients maximize recovery from Amazon FBA returns, ensuring that brands benefit from effective returns management and processing. This not only supports marketplace success but also strengthens the position of ecommerce businesses.

Operational control >> reactive cleanup.

Final Thoughts: A Welcome Step, But Not a Fix

The FBA Return Expert Service is Amazon acknowledging the obvious, sellers can’t keep eating return losses while maintaining quality margins.

But sellers shouldn’t confuse personalized reports with real control over the process. Seller Central remains the primary platform for managing returns, claims, and reimbursements, making it essential for sellers to monitor their operations closely.

Unless Amazon updates its core return policies (e.g., stops refunding before receipt or strengthens return verification), this program will only go so far. With the right approach, sellers can often find money they didn’t realize was owed to them through diligent tracking and claim filing.

Still, for merchants in the invite pool, this could be a valuable way to diagnose and reduce returns on high-value items and push for smarter return workflows before peak Q4. Ultimately, sellers should choose the best strategy for their unique needs to maximize reimbursements and minimize losses.

Frequently Asked Questions

What is Amazon’s FBA Return Expert Service?

Amazon’s FBA Return Expert Service is an invite-only program that provides sellers with personalized support from subject matter experts to reduce return rates, especially for high-priced items.

How can the FBA Return Expert Service help sellers improve profits?

By identifying listing quality issues and reducing customer returns, the service helps sellers minimize refunds, disposal fees, and lost inventory, all of which improve profitability.

Who is eligible for the FBA High Average Selling Price Program?

Currently, the program is invite-only and focused on sellers with ASINs priced above $50 that experience high return rates.

Does this service replace Amazon reimbursement claims?

No, the FBA Return Expert Service is separate from reimbursement processes. It’s focused on prevention and performance improvement, not recovering money post-return.

Are there downsides or risks to joining this new Amazon returns program?

While the program offers value, it may come with added scrutiny, expectations, or unclear accountability. Sellers should weigh the benefits of insight against the risk of increased compliance pressure.

Written By:

Rinaldi Juwono

Rinaldi Juwono

Rinaldi Juwono leads content and SEO strategy at Cahoot, crafting data-driven insights that help ecommerce brands navigate logistics challenges. He works closely with the product, sales, and operations teams to translate Cahoot’s innovations into actionable strategies merchants can use to grow smarter and leaner.

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Extended Producer Responsibility (EPR): How Peer-to-Peer Returns Solve for It

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The way we deal with waste is changing fast. Governments around the world are done letting brands ship products with zero thought about what happens when they break, expire, or get returned. Enter Extended Producer Responsibility (EPR), a policy model that makes producers financially and operationally accountable for their products’ full life cycle, including after consumers are done with them.

And while most ecommerce operators are bracing for the added costs, smart brands are already asking a different question: What if we could turn EPR compliance into a competitive advantage?

Let’s dig into how EPR works, what’s shifting globally, and how Cahoot’s peer-to-peer returns program just might be the most elegant solution ecommerce sellers never saw coming.

What Is Extended Producer Responsibility?

Extended Producer Responsibility, or EPR, is a policy approach that shifts the financial responsibility and logistical burden for waste management away from governments and consumers and places it squarely on the shoulders of producers. That means brand owners, manufacturers, and importers must now manage the end-of-life of their products. Whether it’s packaging waste, electronics, beverage containers, or textiles, producers are expected to pay for or directly handle the collection, reuse, recycling, or disposal of their waste.

And it’s not optional anymore. EPR programs have already been implemented or introduced in many countries, from Canada to the EU to parts of the U.S. In fact, over 60 jurisdictions now have some form of EPR legislation, and more are passing every year. Even developing countries are starting to adopt similar policy approaches to address waste management, limited resources, and environmental impacts.

The idea is simple:

If you make it, you should figure out how to unmake it.

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Why EPR Matters for Ecommerce (and Fast)

Most ecommerce brands don’t manufacture the products they sell, but that doesn’t mean they’re off the hook. In most EPR laws, the “producer” includes brand owners, importers, and even large online marketplaces. That means if you ship to consumers in European Union countries, you might already be subject to EPR registration, fees, and reporting obligations, whether you’re selling soap, apparel, furniture, or waste electronics.

A few examples:

  • France, Germany, and Austria now require ecommerce sellers to register with a Producer Responsibility Organization (PRO) and report packaging quantities sold
  • California, Colorado, and Oregon have passed EPR laws covering packaging, shifting recycling costs from local governments to producers
  • The European Union is expanding EPR schemes to textiles and batteries while increasing financial responsibility on producers for meeting recycling targets

Bottom line: the legislation is no longer just about compliance; it’s reshaping how brands think about production, materials, costs, and returns.

The Challenge: EPR Compliance Is Complex, Costly, and Ongoing

Here’s the hard truth: complying with EPR is expensive. Brands must:

  • Register in each country or state
  • Report SKU-level data on materials used
  • Pay eco-modulation fees based on how sustainable the product or packaging is
  • Handle logistics for collection, reuse, or recycling
  • Prove proper disposal through auditable documentation
  • Work with a Producer Responsibility Organization or risk being delisted from marketplaces like Amazon Germany

This is a ton of work. And worse, it’s ongoing; producers must continually track and report quantities sold, what was returned, how it was processed, and where the materials went. For ecommerce operators already dealing with slim margins and tight cash flow, EPR can feel like an existential threat.

So what’s a brand to do?

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Enter Cahoot: Turning Returns into an EPR Compliance Asset

Here’s where Cahoot’s peer-to-peer ecommerce returns solution changes the game.

Returns are one of the biggest blind spots in EPR. Returned goods often fall through the cracks of reuse and recycling programs, creating waste and compliance headaches. Traditionally, a returned item is shipped back to a warehouse, inspected, and often discarded or sent to liquidation, especially in fast fashion or electronics. That’s a wasted product, wasted materials, and additional shipping, all of which hurt your EPR score.

But what if that returned product could skip the warehouse altogether and get shipped directly to the next buyer?

That’s exactly what Cahoot’s peer-to-peer returns model does.

Instead of bringing a return back into centralized inventory, Cahoot reassigns it in real-time to the next customer who wants it. The return is rerouted, minimizing extra handling, materials, and emissions. And yes, it’s fully traceable for EPR reporting.

Here’s How Cahoot Solves for EPR:

1. Reduces Waste and Increases Reuse

Returned products are resold, not discarded. That extends product life, lowers end-of-life management costs, and keeps items out of landfills, key outcomes for EPR compliance.

2. Cuts Down on Packaging Waste

Because the return never goes back to the original warehouse, the need for repackaging is eliminated. That’s less packaging waste and fewer new materials in circulation.

3. Minimizes Reverse Logistics Emissions

No second trip across the country. No return to origin. Just direct-to-new-customer fulfillment. This slashes the carbon footprint of the return journey and helps brands meet sustainability targets.

4. Enhances Product Stewardship Reporting

With Cahoot, returns are tracked from the original buyer to the next. That data visibility gives brands a documented chain of custody they can use for EPR program reporting.

5. Avoids Fees and Penalties

Many EPR shifts include eco-modulated fees, meaning the greener your product’s life cycle, the less you pay. Cahoot helps brands reduce costs by showing responsible, circular product management.

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EPR and Returns: A Match Made for Reinvention

Let’s be honest, most brands aren’t thinking about returns when they think about EPR legislation. But they should be. A returned product that gets trashed is the ultimate EPR failure. One that gets rerouted and reused? That’s a policy win, an environmental win, and a cost-saving win.

What’s more, Cahoot gives ecommerce operators a rare opportunity: To not just comply with EPR, but to lead.

Final Thoughts: Don’t Just Comply, Differentiate

EPR isn’t going away. In fact, it’s spreading fast, and consumers are paying attention. Brands that embrace reuse, reduction, and responsibility will earn trust. Those who treat returns like an afterthought may face penalties, bad PR, or worse, delisting from key markets.

The good news? Cahoot’s peer-to-peer returns solution is already helping brands across categories, from apparel to electronics, cut costs, reduce environmental impacts, and prove EPR compliance in a way that scales with growth.

That’s not just smart compliance, that’s smart business.

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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How the EU Green Deal is Shaping Ecommerce & How Peer-to-Peer Returns Help Solve It

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The European Green Deal isn’t just a buzzword, it’s a mandate that’s reshaping how business gets done. It’s Europe’s moonshot plan to become the first climate-neutral continent by 2050, cutting emissions and pollution across every industry. For ecommerce brands, this is both a wake-up call and an opportunity. In a climate-neutral European Union, doing business as usual isn’t going to cut it. Sustainability is now a must-have, not a nice-to-have. And surprisingly, one of the secret weapons in meeting these ambitious goals might just be rethinking something as routine as product returns.

What Is the European Green Deal? (In Plain English)

In case you missed it, the European Green Deal (EGD) is the European Union’s sweeping strategy to tackle climate change and drive sustainable development. Think of it as the EU’s growth strategy for the 21st century, a plan to transform Europe into a fair, prosperous society with a modern, resource-efficient, and competitive economy that leaves no one behind. The headline goals? Reduce greenhouse gas emissions by 55% by 2030 and hit net zero emissions (climate neutrality) by 2050. In other words, become a climate-neutral continent within a few decades. No pressure, right?

This Green Deal isn’t a single law but a whole portfolio of policies touching everything: clean energy, circular economy practices, sustainable agriculture (hello, Farm to Fork strategy), transportation, construction, and more. It’s backed by the European Climate Law, making these emission-cut targets legally binding, and a “Fit for 55” package of initiatives to overhaul regulations from energy taxes to carbon pricing mechanisms. The European Commission and European Parliament are all in on this, reviewing old laws and crafting new ones to align with a climate-neutral economy. We’re talking about policies like an updated EU Emissions Trading System, a Carbon Border Adjustment Mechanism (to prevent so-called carbon leakage from less-regulated countries), a circular economy action plan, and even a Nature Restoration Law to revive ecosystems.

The European Green Deal is massive in scope, but its essence is simple: economic growth without trashing the planet. It aims to decouple growth from resource use, meaning you can have a sustainable economy without burning through natural resources or spewing greenhouse gas emissions. It’s also about an inclusive transition; the EU’s Just Transition Mechanism is funneling billions to ensure EU member states and industries (even those hooked on fossil fuels) can go green in a fair and inclusive way. This is not just politics or altruism; it’s a growth strategy for a competitive, climate-neutral European economy.

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Why Ecommerce and Retail Can’t Ignore It

So, what does this sweeping environmental policy have to do with your ecommerce operation or retail brand? In a word: everything. The Green Deal’s tentacles reach into sustainable supply chains, energy efficiency, packaging, shipping, and yes, even how you handle returns.

European regulators and civil society alike are increasingly scrutinizing the environmental impacts of products from cradle to grave. If you’re selling in the EU (or even just shipping to Europe), you’ll face new expectations about sustainable industry practices and corporate sustainability. For instance, the push for a circular economy means you’ll need to design products (and processes) for reuse, repair, or recycling instead of the landfill. There’s talk of stricter rules on packaging waste and requirements to use more recycled materials. The EU Biodiversity Strategy and sustainable development goals embedded in the Green Deal signal that everything from your sourcing to your delivery methods should tread lighter on the planet.

And let’s not forget carbon. The EU’s climate agenda could soon touch logistics directly, think emissions trading for the transportation sector or fuel taxes for shipping. If you’re running an ecommerce fulfillment operation, those delivery vans and long-haul trucks are on the radar. The power sector that charges your warehouses is shifting to renewable energy sources, and energy-intensive data centers and industrial processes are expected to become more energy-efficient or face penalties. The bottom line: whether it’s reducing greenhouse gas pollution or minimizing waste, EU policies are going to impact how you source, make, package, and deliver goods.

The Hidden Sustainability Sinkhole: Online Returns

Okay, now for the plot twist, one area that’s often overlooked in sustainability plans is ecommerce returns. Yes, that seemingly mundane process of customers sending stuff back is actually a huge sustainability sinkhole. Online returns have exploded alongside the ecommerce boom, and with them comes a truckload (literally) of emissions and waste.

Consider this: Customers return up to 30% of online purchases on average. In fashion, return rates can soar above 40–50%. Each return typically means extra shipping, additional packaging, and sometimes scrapping of perfectly good products. In 2022 alone, over 9.5 billion pounds of returned products were sent to landfills instead of being resold or recycled. Globally, handling returns emits an estimated 24 million metric tons of CO₂ each year, roughly equivalent to the emissions of some small countries. Let that sink in: all that back-and-forth shipping and wasted product is pumping out greenhouse gases, undermining the fight against climate change.

From a climate neutrality standpoint, returns are a big problem. One report found the carbon impact of the return trip and processing can add about 30% more emissions on top of the original delivery. And if those returns end up destroyed or in a dump, it’s not just a carbon hit, it’s a failure of the circular economy model. The circular economy action plan in the EU Green Deal aims to design waste out of the system, yet here we are literally throwing away products by the ton. Global greenhouse gas emissions from freight are rising, and unnecessary return shipments are part of the story.

Then there’s packaging waste. Online shopping already uses several times more packaging per item than traditional retail. Returns often mean even more packaging, sometimes new boxes, plastic wrap, and labels, contributing to the piles of packaging waste that EU member states are under pressure to reduce. With Europe pushing initiatives to curb single-use packaging and boost recycling, the current returns status quo (which can be “one-and-done” use of packaging and product) just isn’t sustainable.

In short, ecommerce returns are a sustainability blind spot. If you’re an ecommerce pro eyeing EU markets (or just trying to run a responsible business), you can’t afford to treat returns the old way. Doing so would undermine your climate neutrality goals, rack up your carbon footprint, and possibly put you afoul of emerging regulations around waste and emissions. The climate crisis demands we find a better way to handle returns in a resource-efficient, environmentally sustainable manner.

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Enter Peer-to-Peer Returns: A Game-Changer for Sustainable Ecommerce

So, how do we fix this? How can online retailers and brands slash the footprint of returns to align with the Green Deal vision of a sustainable economic model? One answer is reimagining the reverse logistics process altogether, and this is where Cahoot’s peer-to-peer ecommerce returns solution comes in. It’s a fresh approach that turns the conventional returns model on its head.

Cahoot has pioneered a peer-to-peer returns program that is cheaper, faster, and more sustainable than the status quo. Instead of shipping a return from the customer back to a distant warehouse (and then maybe to a refurb center or a new buyer), Cahoot enables customers to send that return directly to the next customer who wants the item. In essence, the returned product is instantly resold while it’s still in transit. No detour through a storage facility, no time wasted sitting on a shelf, and no extra cross-country trucking just to end up back in inventory. By skipping the warehouse and cutting out an entire leg of transportation, this model eliminates unnecessary carbon emissions and saves lots of time and money.

Here’s why this approach is a sustainability trifecta:

  • Fewer Shipping Miles: Every return that goes straight to a new owner is one less trip to a centralized return center and then to a new buyer. That means burning less fossil fuel in transit. Fewer trucks on the road and planes in the air = lower carbon emissions. For a brand concerned with reducing greenhouse gas emissions, this is a big win.
  • Reuse of Products (Circular Economy in Action): Instead of products being discarded or sitting idle, they get a second life immediately. This directly supports the circular economy ethos of the EU Green Deal by keeping products in use longer and out of the waste stream. It’s essentially enabling reuse and product life extension at scale, which is exactly what a sustainable supply chain should do.
  • Less Packaging Waste: If the original packaging can be used to send the item to the next customer, we avoid consuming new boxes and plastic. That cuts down on packaging waste and the demand for new packing materials (which in turn saves resources and energy). It aligns with the EU’s push for packaging reuse and waste reduction.
  • Energy Efficiency & Reduced Processing: No need for energy-intensive warehouse operations to check, repackage, and restock the item. Skipping the warehouse not only saves labor but also electricity and heating/cooling at facilities, contributing to overall energy efficiency in the logistics chain.
  • Data & Optimization: The Cahoot system uses AI to grade and approve returned items for resale, ensuring only quality products circulate to the next buyer. This kind of smart system can eventually tie into a better industrial strategy for sustainability, using tech to minimize waste. It also provides transparency that can be reported in sustainability metrics (imagine telling your customers or regulators how many pounds of goods you kept out of landfill via direct resell!).

Crucially, this peer-to-peer model helps companies tackle both climate impact and compliance with emerging rules without sacrificing the bottom line. It’s not philanthropy; it’s a growth strategy for the sustainable era. By reselling nearly 48% of returns immediately through this network, brands can reclaim revenue that would otherwise be lost. They save on return shipping and warehousing costs, which is money back in the business, all while doing right by the planet. That financial incentive makes it easier to invest in green improvements elsewhere, too. In a way, Cahoot’s solution turns environmental sustainability into a competitive advantage rather than a cost center.

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Aligning with EU Goals and Beyond

It’s almost like Cahoot’s returns solution was tailor-made for the EU Green Deal’s objectives. It checks multiple boxes on the EU’s sustainability agenda:

  • Climate Neutrality & GHG Reduction: Fewer transportation emissions contribute to the EU’s emissions targets (directly reducing the carbon footprint of ecommerce operations).
  • Circular Economy & Waste Reduction: Immediate reuse of returned products means less waste, supporting EU targets to cut waste and increase product longevity.
  • Sustainable Industry Innovation: This model exemplifies how industrial strategy and innovation can solve environmental problems, exactly the kind of private-sector initiative EU policymakers encourage to meet climate goals.
  • Consumer Engagement in Sustainability: European consumers are increasingly eco-conscious. Offering a peer-to-peer returns option signals a brand’s commitment to sustainability, aligning with the European Climate Pact spirit of involving citizens and civil society in the green transition. Shoppers get to participate by buying a “like-new” product at a discount, which comes with the feel-good factor of saving an item from the dumpster.
  • Corporate Sustainability Reporting: As EU institutions move toward stricter reporting on environmental impact (see: Corporate Sustainability Reporting Directive), a company using innovative returns solutions can better report reductions in emissions and waste. It’s a concrete action to show investors and regulators that the company is serious about sustainable development and not just greenwashing.

Lastly, let’s zoom out. The United Nations and the global community are watching pioneers in sustainability. If a solution like Cahoot’s can scale, it doesn’t just help meet EU mandates; it could influence best practices worldwide. The European Green Deal might be the catalyst, but the idea of a sustainable economic model for ecommerce has no borders. Cutting down carbon and waste in returns is just smart business for the planet, whether you’re in the EU, the US, or anywhere else.

Conclusion: Turning Mandates into Opportunities

The EU Green Deal is transforming the rules of the game for businesses, especially in retail and ecommerce. Rather than seeing it as a compliance headache, savvy brands see a chance to innovate. Returns, often treated as a boring afterthought, are actually a golden opportunity to boost sustainability and efficiency in one go. By embracing concepts like peer-to-peer returns, ecommerce companies can not only reduce greenhouse gas emissions and waste in line with EU goals, but also surprise themselves by improving customer loyalty (eco-conscious shoppers love green initiatives) and recovering revenue that used to be written off.

The road to a climate-neutral economy will require every tool in the toolbox. Rethinking returns is just one piece of the puzzle, but it’s a powerful one. It shows how a fair and inclusive green transition can also be good for business. So as the EU leads with ambitious climate and environmental objectives, it’s time for ecommerce operations to get creative and align with those policies. The Green Deal mandates might feel daunting, but with the right strategies (and a little ingenuity from companies like Cahoot), we can turn sustainability into a win-win: for the planet and the profit line. In the end, saving the world and running a competitive economy don’t have to be at odds; the Green Deal is nudging us to prove it, one return shipment at a time.

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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Using Rithum to Optimize Multi-Channel Fulfillment and Dropshipping

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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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