What is automated shipping: Benefits and how it works

GLOBAL SELLING BLOG

What is automated shipping?

Automated shipping streamlines the process of fulfilling new orders by automating packaging and delivery to customers. In this blog, learn more about its advantages and tips to plan your shipping better.

In international trade, businesses strive to expand their reach across borders and tap into new markets. An important step in this process is logistics and shipping, and for this, planning finances becomes critical to running smooth business operations.

What is automated shipping?

It is a cutting-edge logistical strategy that incorporates sophisticated software, state-of-the-art technology, and robust infrastructure to optimize an organization’s fulfilment planning and shipping functions. Businesses automate shipping processes to remove manual processes and minimize the potential for human error, enhancing the overall accuracy and speed of the shipping process.

The key objective of this type of shipping is to reduce the need for skilled or unskilled labor to perform repetitive tasks, such as sourcing for shipping rates or checking carrier availability. This is achieved by deploying advanced algorithms and predictive analytics to forecast shipping demands and accurately optimize carrier selection and routing.

Moreover, these automated processes enable greater efficiency, resulting in increased productivity and faster order fulfilment times. This allows organizations to handle a larger volume of orders in a shorter time without compromising on quality or accuracy. By leveraging automation, companies can streamline their shipping operations and stay ahead of the competition, ultimately improving their bottom line.

Advantages of automated shipping

Some of the common several benefits of automating shipping are:

Optimize supply chain

Automating shipping is a key strategy for optimizing your supply chain, as it can bring a range of benefits. Businesses can automate shipping processes and reduce errors, leading to greater efficiency and productivity..

Get real-time analytics

Automated shipping provides businesses a tool for gaining real-time insights into their shipping and inventory processes. By integrating advanced software and analytics tools, organizations can access comprehensive data on every aspect of their shipping operations, from carrier selection to delivery times and more. Real-time analytics also help in tracking and optimizing shipping costs.

Increased efficiency

Automated systems save time and reduce the risk of human error. It allows businesses to process orders and generate labels quickly.

Cost savings

Businesses can substantially reduce labor costs and shipping fees by automating shipping. Automated systems can compare shipping rates from various carriers and select the most cost-effective option for each shipment.

Improved inventory management

Businesses can automate shipping process and integrate it with inventory management software, providing businesses with real-time data on inventory levels and shipping requirements.

Advance against export bills sent on collection basis:

Exporters can obtain advances against export bills sent for collection through banks. Funds are provided based on the bill’s value and the importer’s creditworthiness. Payment is received once the bills are collected from the importer’s bank.

Tips to make the most of automated shipping

Here are some tips to utilize automatic shipping:

Use suitable e-commerce automation tools

One of the most effective ways to automate e-commerce shipping is to integrate your business using the tools provided by e-commerce platforms and programs. This can help you streamline the flow of information between the customer and your fulfilment centers, simplifying the process.

Leverage cloud computing:

Cloud computing is essential for an effective shipping strategy, providing businesses with a secure and scalable platform to automate all aspects of their logistics.

Use software for compliance

Navigating complex customs and tax declarations can be a time-consuming process. By utilizing software solutions designed specifically for these tasks, businesses can automate these processes, reduce errors, and save time and money. With Exports Compliance Dashboard, Amazon helps simplify export documentation and provides guidance on key requirements and regulations. This one-stop dashboard provides compliance support at every stage of the exports journey — registration, product and shipping documentation, payment reconciliation, and tax documentation — for brands exporting from India to the US. Indian businesses, whether or not they’re selling through the program, can obtain information and connect with third-party experts who assist them in obtaining documentation.

Get expert support for documentation here

Leverage shipment tracking:

Shipment tracking is an essential feature of shipping, providing customers with real-time updates on the status of their orders. By leveraging this technology, businesses can improve the customer experience, reduce customer service inquiries, and enhance overall customer satisfaction. Amazon Global Selling launched SEND, a cross-border shipping solution that offer exporters a hassle-free shipping process and customs support at competitive rates.

SEND makes logistics simpler and variabilized from a cost structure standpoint. If a business wants to store even a single product for sale in the US for just one day, it can use Amazon’s international warehouses and pay for storage of just that product for just one day. With SEND, exporters can easily track shipments, ensure convenient pickup and delivery, and pay logistics charges after delivery. It also enables exporters who use Fulfillment by Amazon (FBA) to ship small parcels abroad. All processes are centralized within Seller Central.

Explore Amazon SEND here

The e-commerce industry is continuously evolving, and businesses must adopt innovative solutions to remain competitive and meet customers'' ever-increasing expectations. Automated shipping systems offer a range of benefits, from reducing overall costs and increasing efficiency to improving overall customer experience. E-commerce exports programs like Amazon Global Selling also provide tools and programs to help exporters like you with international logistics. Logistics is one of the central tiles in the mosaic of e-commerce exports. Taking shipping costs into consideration, hassle-free exports and customer satisfaction are dependent on a robust and effective logistical network.

Fulfillment by Amazon (FBA): Hassle-free shipping and logistics

To enable fast and hassle-free shipping that benefits both the exporter and customer, Amazon provides Fulfillment by Amazon (FBA), a program that allows businesses to outsource order fulfillment to Amazon. With FBA, exporters can send products to Amazon fulfillment centers; whenever a customer makes a purchase, Amazon picks, packs, and ships the order. It empowers Indian exporters to scale their businesses globally by helping them offer a superior customer experience. FBA leverages the Amazon customer service network stretching around the globe, managing customer inquiries and enabling refunds and returns for orders.

Exporters can also use Amazon SEND to easily track shipments, ensure convenient pickup and delivery, and pay logistics charges after delivery. It also enables exporters who use Fulfillment by Amazon (FBA) to ship small parcels abroad. All processes are centralized within Seller Central.

Amazon Global Selling is focused on simplifying some of the critical pain points associated with cross-border exports — market access and intelligence, logistics and supply chain, and payments. It is playing a key role in ensuring the success of exporters through proprietary tools and programs.

Frequently Asked Questions

What are the challenges of automated shipping?

Some of the challenges of automated shipping may include
• Implementation costs Integration challenges
• Potential technical issues
• Difficulty in managing exceptions
• The complexity of shipping regulations:

What is the impact of automated shipping on the shipping industry?

Automated shipping has had a significant impact on the industry by revolutionizing how businesses manage their logistical operations. By leveraging advanced technologies like artificial intelligence, machine learning, and robotics, businesses can streamline their shipping processes, reduce errors, and improve overall efficiency.

Is an automated shipping system right for international shipping?

This depends on your business and operations. An automated system can be highly beneficial for international shipping. as it streamlines the process by providing businesses with real-time tracking and monitoring of their shipments, managing customs documentation, and automatically selecting the most cost-effective and reliable shipping options.

Published on June 22, 2023.

Sources:
1. https://flow.space/blog/automated-shipping/
2. https://www.conveyco.com/blog/4-cost-saving-benefits-automated-shipping-systems/
3. https://www.bigcommerce.com/blog/automated-shipping-ecommerce/
4. https://www.shipbob.com/blog/automated-shipping/
5. https://www.upkeep.com/learning/order-fulfillment-challenges/

Related blogs

How to calculate shipping costs?

Guide on logistics process to export goods for your business

What is Dropshipping: Detailed guide to dropship in 2023