Many businesses rely on Shopify for their e-commerce operations. As helpful as this platform can be, not every Shopify store sees the same level of growth. Retail shipping automation is a key differentiator between leaders in this space and the rest of the pack.
Companies can optimize their online sales processes in many ways, but few measures have as profound an impact as automated shipping. Recognizing this potential and learning to capitalize on it is key to thriving in the increasingly competitive e-commerce marketplace.
How Retail Shipping Automation Drives Growth
Retail shipping automation comes in several forms. Stores may automate order processing, label generation, scheduling with third-party logistics providers, package selection, delivery tracking, or even physical tasks like picking, packaging and truck-loading.
Packaging is a key area for automation — 55% of consumer packaged goods leaders feel packaging and processing benefit most from automated tools. Robots can work faster and with fewer errors than humans, supporting shorter shipping timelines and less risk of damage from improper packing.
Picking can gain much from automation, too, as it’s remarkably time-consuming and error-prone when done manually. Alternatively, warehouses can use robotic picking or material handling equipment to complement human employees. This approach helps operations expand, taking on additional throughput without delaying shipping schedules despite labor shortages.
Even seemingly minor processes can benefit from automation. People who don’t need to manually print and attach labels or schedule shipments have more time to focus on other, more pressing tasks. As a result, volume can increase while customers get their orders in less time.
Automated inventory management is perhaps the most advantageous of these administrative optimizations. Inventory distortion is so common that it costs the world $1.7 trillion annually. Connecting IoT tracking solutions to an automated cloud-based management system to automate stockkeeping ensures records remain up to date and feature no errors. Consequently, Shopify stores avoid selling stock they don’t have or overstocking unneeded items.
How to Implement and Optimize Automated Shipping
The key to successful retail shipping automation is knowing which use cases are most relevant in each context. Different Shopify stores have varying strengths and weaknesses, so the best automation solution depends on where their unique operations have room for improvement.
Larger warehouses may benefit the most from picking automation. Businesses with wider product varieties could get the most out of a solution that automatically pairs items to the appropriate packaging size and type. Fragile shipments need at least three inches between the product and the outer box for cushioning, and automating these calculations can save considerable time.
While physical automation opportunities vary, every e-commerce operation can benefit from automated inventory management. However, the ideal solution still depends on context. Retailers can choose the optimal platform by comparing costs, functionality and integration with existing technologies. The average organization uses 112 different software apps, creating significant room for silos, so the more programs and data an automation solution can connect to, the better.
Most Shopify stores likely have multiple areas where retail shipping automation will yield improvements. Still, automation can be expensive and take time to learn to use effectively. Consequently, it’s best to apply it to the area of greatest need first before expanding slowly as returns start to show.
Retail Shipping Automation Can Reshape the Industry
Modern retailers must branch into e-commerce to remain competitive, but shipping introduces new complications. The best way to keep delivery timelines short and prevent costly errors is to automate.
In all its forms, retail shipping automation can enable faster growth and lower expenses over time. It all starts with acknowledging the opportunity and investing in it wisely.
Emily Newton has nine years of creating manufacturing articles under her belt. She loves helping people stay informed. Her work in Machine Design, American Machinist and Design and Development Today, showcases her ability to identify newsworthy stories. When Emily isn’t writing, she enjoys building lego sets with her husband.
