Discovery, Delivery, and Data: Mastering the Large Retailer Marketplace

Although online merchants understand the need for visibility in eCommerce marketplaces, they also know that complying with each site’s selling requirements can be overwhelming. Finding a solution that helps navigate the marketplace landscape can ensure merchants capture part of the 59% of eCommerce sales performed through these platforms by 2027.

If online merchants want to master the world of eCommerce marketplaces, they must focus on discovery, delivery, and data.

Discovery

 

Discoverability is the first challenge facing most online merchants. Competition grows as more businesses sell on sites like Amazon, Walmart, eBay, or TikTok Shop. Differentiating their products or services becomes more difficult unless companies rely on more than just the marketplace.

 

Popular online shopping apps on an Apple iPhone: Amazon, Temu, eBay, Target, Walmart and Etsy.

 

For example, social media has become a go-to source for shoppers looking for product information. Whether X (formerly Twitter) or Instagram, more people use social media for reviews and recommendations. These user experiences help define a brand before a shopper has even browsed a marketplace. Those 280-character snippets often focus on more than the product. They often include comments on delivery and customer service.

A recent survey found that 69% of respondents are less likely to do business with a retailer if they do not receive their purchase within two days of the estimated delivery date. Others are not as forgiving: 16% said they would stop shopping with the retailer after one incorrect delivery, and 14% said they would not buy again from a vendor if their purchases were late. That’s why delivery is a crucial component of online sales.

Delivery

 

Meeting customer delivery expectations begins before an order is even placed.  It begins with a well-informed supply chain.

Technology

Today’s eCommerce landscape requires more than technology—it demands integrated technology. Retailers need real-time data about orders as they progress through the supply chain. A full-service electronic data interchange (EDI) solution enables this essential business-to-business communication.

What is EDI?

EDI allows computer-to-computer data exchange. By complying with EDI standards, companies can send purchase orders, invoices, and other documents electronically to eliminate manual processes. SPS Commerce, for example, supports EDI standards designed for retailers, providing information seamlessly across a supply chain.

According to Sean Mueller, Vice-President of Business Development at Symbia,

As the global gold standard for EDI, SPS Commerce has been a game-changer. They seamlessly integrate data flow and communication with large retailers, enhancing our operational capabilities and keeping us ahead in a competitive market.

What is a WMS?

Warehouse management systems (WMS) are software programs that help organizations manage warehouse operations. They guide the movement of goods from the moment they arrive to the time they leave. They are a crucial component of supply chain management providing real-time visibility of a warehouse inventory.

 

Warehouse employee analyzing e-commerce data on a laptop in a modern warehouse, highlighting the use of WMS for efficient inventory management and retailer compliance

 

Symbia Logistics WMS works with the SPS Commerce EDI solution to ensure a seamless delivery of warehoused goods to a distribution center. Working together, the companies can provide advanced shipping notices (ASN) so fulfillment facilities know the quantity of incoming stock. They can apply compliant labels to prevent shipments from being returned.

“Working with Symbia Logistics has been a seamless experience. Our EDI solutions provide them with the pinpoint traceability and real-time data they need to meet the complex demands of large retailers. Together, we’ve created a robust system that ensures compliance and efficiency across all levels of their operations.” — Tracey Ortiz, Director of Product, SPS Commerce

While technology can automate individual tasks, integrated technologies can deliver end-to-end visibility of supply chains for online merchants. By choosing a logistics provider with seamless integrations, retailers know where their products are and when they will arrive.

Data

 

Online merchants rely on accurate data to make informed decisions. They need to track inventory to ensure they have adequate products in stock. Real-time inventory data can tell merchants which products are best sellers and how frequently to re-order.

Merchants also need information on where their products are within the supply chain.

  • Are they in transit?
  • Are they still in the supplier’s warehouse?
  • Have the items been received?

Retailers should track the time it takes to receive products once an order is placed to determine the most efficient suppliers.

Marketplace Retailer Compliance

Every online marketplace has rules, emphasizing the importance of retailer compliance. These rules include storefronts, images, product information, and delivery. Retailer compliance becomes critical if online merchants are using a marketplace distribution center for fulfillment, as they must adhere to strict shipping rules such as proper labeling and advance shipping notifications. If merchants fail to adhere to these rules, their shipments may be refused and returned at the seller’s expense.

With integrated systems enhancing retailer compliance, warehouse data can be sent via EDI messages to inform fulfillment centers of a shipment’s size and weight.. The messages can inform the marketplace of the anticipated arrival time and the designated distribution center. Marketplaces can use EDI messages to send confirmations.

A partnership such as Symbia Logistics and SPS Commerce enhances operational efficiency. Real-time data access and comprehensive traceability simplify the complex process of multichannel fulfillment. With end-to-end visibility, crucial compliance requirements ensure a safe and reliable supply chain. The partnership improves operational metrics, enhances client satisfaction, and solidifies retailer compliance with the varied marketplace rules.

What Does an Integrated System Look Like?

 

Elfin Treasures sells garden figurines on an online marketplace. According to their records, their fairy village inventory is running low. They ask the warehouse to send another pallet to the distribution center. The warehouse manager forwarded an email sent three months earlier indicating that the fairy village was out of stock and needed replenishment.

 

out of stock text on smart phone screen.

 

The Elfin Treasures buyers are frantic. The supplier is ten hours ahead, so they won’t see the order request until the next day. Depending on the supplier’s inventory and the shipping time, the company may not have sufficient stock to fill orders, resulting in a potential non-compliant status. Although the buyers receive confirmation that the items are in stock and will be shipped immediately, they do not know the shipment’s status until it is refused at the fulfillment center.

With an integrated system, 

Elfin Treasures established a low inventory threshold with the warehouse. The WMS notifies when the low threshold is reached and sends alerts until a response is received. Thus, the buyers have sufficient time to place an order.

Using an EDI solution, the company sends a purchase order to the supplier. The supplier responds within 24 hours with a delivery date for 85% of the order, indicating that the remaining 15% would ship 30 days later. When the first order ships, an EDI message notifies the warehouse when to expect the shipment. The ASN allows the warehouse to make room for the incoming inventory.

Once the warehouse receives the fairy villages, they prepare the items for shipping to the online marketplace’s distribution center. The EDI solution notifies the fulfillment center with a required ASN, ensuring the shipment will not be refused.

Integrated technologies enable retailers, suppliers, and logistics partners to operate seamlessly and ensure that customers’ delivery expectations are met. To learn more about the Symbia Logistics and SPS Commerce partnership, contact us.