Take a Ship From Store Journey
Implementing a Ship From Store solution might seem like a complicated venture, but USPS® can help you navigate through the journey. Explore this step-by-step guide to get started.
Each section includes guidance, statistics and further reading. There is a glossary of terms at the end of the article.
Step 1: Learning The Basics
Before you commit to a Ship From Store solution, it’s important to gather the basic facts so you can determine if it’s a fit for your business.
What is Ship From Store?
Ship From Store (SFS) is an omnichannel fulfillment strategy by which retailers use stock from their brick-and-mortar stores to fulfill online and in-store orders, transforming stores into distribution hubs.
How SFS Works
- Order is placed
- Order management system (OMS) routes to store
- Store employee picks item
- Store employee packages item for shipping
- Package is picked up at scheduled time
- Customer receives package
66% of U.S. consumers expect free shipping for all orders.[1]
SFS Benefits
Ship From Store is a win-win for everyone. Here are just some of the benefits:
- Maximize your inventory
- Reduce shipping costs
- Higher sell-through rates
- Fewer out-of-stock items
- Lower cart abandonment
- Higher gross margins by leveraging entire inventory and avoiding markdowns
- Ability to offer a broader array of products
Customers benefit, too:
Access to any product from inventory
Quicker delivery to customers
Consistent brand experience across all channels
Read Up on SFS
- Article: Why retailers are embracing Ship From Store. Online shoppers want it all—speed, convenience, quality and good prices. To help meet those expectations, many retailers are adopting Ship From Store programs. Why? Because delivery a great online sales experience is more important than ever.
- Article: 5 best practices for implementing Ship From Store. When it comes to meeting customer demand, responsiveness is the name of the game. A Ship From Store system allows companies to address escalating needs by putting their unused store stock to use.
How USPS Can Help
USPS has teams of specialists that can assist with onboarding your business and implementing your Ship From Store strategy.
Ready to Talk Ship From Store?
Contact a USPS Ship From Store specialist.
Fill out this Ship From Store registration form.
Step 2: Selecting Your Shipping Carrier
It’s crucial to team up with a shipping provider that can help you execute a Ship From Store plan — from the initial setup to providing the delivery service your business needs.
Your Shipping Carrier
A good shipping carrier can help your business transition to a Ship From Store solution in the following ways:
- Help set up systems.
IT and operations specialists can help recommend strategies for integrating systems, including shipping, transportation and inventory.
- Recommend store transformations
A shipping carrier can help you assess how to use store locations efficiently and address first-day issues.
- Delivery.
Your shipping carrier is your last-mile team member, completing your customer’s purchase by delivering the order. Be sure to team up with a carrier that provides your business with the delivery services you require.
80% of U.S. consumers expect free shipping when ordering a certain dollar amount of online products.[1]
5 more things to ask your shipper before committing:
- How does your company handle local residential deliveries?
- Are there any types of products not shippable with you?
- What factors affect your shipping rates?
- Is a tracking system offered?
- Do you have an IT integration and support team?
62% of U.S. online shoppers say delivery speeds influence their purchasing decisions.[2]
Ready to Talk Ship From Store?
Contact a USPS Ship From Store specialist.
Fill out this Ship From Store registration form.
Step 3: Putting the Systems in Place
Now that you’ve got the basic Ship From Store knowledge, implementation is next. Let’s start with the technical systems that make it run smoothly: inventory management and order routing.
Inventory Management Systems
An inventory management system (IMS) is a central database that tracks all inventory across distribution centers, retail outlets and third-party suppliers.
Before changing systems, these are the key questions to ask yourself:
- How does your company currently manage its inventory?
- Is there one unified system that manages both offline and online products?
- Or do you have separate systems?
85% of U.S. online shoppers search elsewhere for better options when delivery speeds are too slow.[2]
How to Set Up an IMS
Set a budget.
Research IMS options for your specific industry to gauge a price range.
- Determine where IMS could help save costs.
- Set a system budget limit.
- Pick five to 10 IMS options in the appropriate price range.
Pick the right software tailored to your company’s needs.
List the problems your company needs to solve, whether they include:
- Incorrect inventory levels: overstocking/understocking.
- Disorganized reporting from inconsistent sources.
- Usage of incompatible platforms.
Schedule calls with the IMS vendors and request demos.
Ask vendors about specific features:
- Monitoring stock levels.
- Running restocking and sales reports.
- Allowing multiple users to access the IMS.
- Establishing a barcode system.
- Creating invoices and sales orders.
- Integrating multiple platforms.
Identify software that can grow along with your company.
- Know the limitations of the current and prospective IMS options.
- Pick a system that allows the additions of store locations, product lines and sales channels.
Decide how important customizability is.
- Identify the modules and features of each IMS.
- Note how customizable each IMS is.
- Rank the top three vendors by configurability.
Establish compatibility with current systems.
When using different software for packaging, accounting, returns and logistics, an IMS system that syncs with each is key.
- Identify third-party vendors’ software and devices, and how they can be integrated with a prospective IMS.
- Define which programs and devices your company uses, to see which IMS matches best.
- Need a tie-breaker? Go with the one offering better customer service, so if problems arise you can solve them quickly.
640 parcels are generated every second in the U.S., or 55 million each day.[3]
Order Routing System
An order routing system (ORS) helps fulfill orders within the distributed order management system. There are a few key things to consider when setting up an Order Routing System:
There are a few key things to consider when setting up an Order Routing System:
- Inventory availability
With the right inventory management system in place, available products are visible throughout the network, which helps in determining which locations (warehouse, retail locations, or third-party suppliers) are available to deliver the right products to fulfill customer orders.
- Split orders
An ORS needs to determine if an order containing multiple items needs to be shipped in multiple shipments from multiple locations, or consolidated into one.
- Store labor vs. shipping costs
To truly see profitability from a Ship From Store strategy, labor costs must play a role since all locations will require staff to fulfill orders.
- Prioritization of rules
Determine the order routes by store and customer location, or assign priority to certain locations based on efficiency considerations.
- In-stock and allocation rules
It’s essential to keep the in-store experience in mind since out-of-stock inventory is a customer pain point as well. Ensure the systems managing online fulfillment don’t allow critical inventory to be allocated to online orders.
Total U.S. e-commerce sales for 2020 were estimated at $791.7 billion.[4]
Read Up on SFS
How USPS Can Help
Register to the USPS Web Tools support center to get access to e-commerce application program interfaces (APIs) that can be used for online stores or customer service centers—free of charge. Plus, find experts to help you with Web Tools integration.
Ready to Talk Ship From Store?
Contact a USPS Ship From Store specialist.
Fill out this Ship From Store registration form.
Step 4: Transforming Your Stores
Now it’s time to strategically select the stores best suited to convert into fully functional distribution centers.
Selecting the Right Stores
Your USPS team can help you pick which stores to transform from simple retail locations to efficient distribution centers. Many factors affect which are strategically the right ones.
Here are some things to consider in the selection:
- Carrier accessibility
For the most effective shipping process, focus on the stores that have easy access for loading inventory onto carrier trucks at an agreed pickup time and location.
- Strategic locations
Is there reliable data that reveals current and potential customers are concentrated in a certain geographic area? How many of your stores are in those strategic locations? Consider picking stores that enable fast delivery, allowing packages to reach customers in 1–2 days.
- Number of stores and store profile
How many stores are in operation? And which shopper segments visit most frequently? For example, stores in high-traffic tourist areas likely have sales associates who’d rather focus on in-store sales than online order fulfillment.
- Space
The right stores have ample square footage, existing aisles and/or back rooms that can transform into extra storage and fulfillment spaces.
4,160 packages are shipped every second globally.[3]
Prepping the Stores
Now it’s time to transform a portion of the store space into a fully functioning distribution center.
- Pick where and how
Choose a relatively large, convenient space where merchandise can be packaged, and determine how items should be wrapped for shipping.
- Set a process
A well-built plan that includes both digital and physical components makes the most out of the order-fulfilling process. Since staff needs to see the quickest route to specific products for pickup, a mobile app, online system, and/or employee handbook can do wonders and save on legwork.
- Consider the warehouse
Optimizing warehouse inventory can reduce transportation travel time—and help organize merchandise items that often ship together.
- Establish a revenue policy
For sales that happen online but are fulfilled in store, establish a policy to determine which channel gains revenue from that sale.
Read Up on SFS
How USPS Can Help
USPS offers your business free packaging for Priority Mail Express®, Priority Mail® and Package Pickup in ways that can help businesses of all sizes. All of this contributes to lower shipping costs for your company as well as your customers.
Ready to Talk Ship From Store?
Contact a USPS Ship From Store specialist.
Fill out this Ship From Store registration form.
Step 5: Training Your Staff
With stores ready to go, it’s important to ensure your staff is comfortable using the new Ship From Store system.
Teamwork
- Get everyone on the same page
Usually in-store customers need to take priority at retail locations. To avoid service issues, set up a specific time for staff to fulfill online orders. For example, this can be at the end of the day, during slow periods, or at the start of a shift.
- Workshop the packaging process
Teach staff how to pick, pack and label orders according to your system, optimizing your omnichannel experience and making sure products get to consumers on time and in good shape.
- Encourage and inspire
Motivation is a vital aspect, as salespeople can feel unmotivated to fulfill online orders or work in the back office—especially when they are used to dealing with people and being paid on commission. Keeping up work morale is a key factor.
Read Up on SFS
How USPS Can Help
With USPS, you have the expert help of Postal employees who can become part of your Ship From Store team. They can help from the first step of implementation to last-mile delivery.
Ready to Talk Ship From Store?
Request a contact from a USPS Ship From Store specialist.
Fill out this Ship From Store registration form.
Contact USPS
Ready to talk Ship From Store?
Contact a USPS specialist to set up your customized Ship From Store plan.
Fill out this Ship From Store registration form.
USPS knows what it takes to deliver:
- Priority Mail®
Delivery in one to three business days—depending on origin, destination and drop-off time—so customers get their packages quickly.[5]
- Priority Mail Express®
Our fastest domestic service for time-sensitive letters, documents or merchandise. Guaranteed next-day to two-day delivery by 6 p.m. to most locations, including P.O. Boxes, or your money back.[5][6]
- Priority Mail Regional Rate® Boxes
Zone pricing for a variety of box sizes traveling short distances lets local stores ship to local customers at a lower “in-zone” cost.[7]
- Priority Mail Flat Rate®
If It Fits, It Ships® pricing to anywhere in the U.S. for mailable items up to 70 pounds.[8] Store staff does not have to weigh or calculate postage.
- First-Class Package Service®
For commercial items up to 15.99 ounces, a fast and low cost shipping option.
Footnotes
- “Consumer Trends Report | Q2 2021,” Jungle Scout, 2021.
- “Same-Day Delivery: 3 Reasons Why Speed Matters,” Flexe, June 3, 2021.
- “Parcel Shipping Index 2021,” Pitney Bowes, 2021.
- “Quarterly Retail E-Commerce Sales — 4th Quarter 2020”, U.S. Census Bureau News, Feb. 19, 2021.
- In most cases, the expected delivery date that is printed on your receipt or provided at checkout will reflect a delivery time of 1, 2, or 3 days based on origin, destination and Post Office acceptance time. Exceptions and restrictions apply. Visit usps.com/ship/priority-mail.htm for details.
- Exceptions apply. For details, visit the Domestic Mail Manual and https://www.usps.com/ship/priority-mail-express.htm. Scheduled delivery date depends on origin, destination, and drop-off time. Some restrictions apply. For additional information, visit pe.usps.com.
- Restrictions apply. For details, visit https://faq.usps.com/s/article/Regional-Rate-Boxes. Regional Rate Boxes, which can be used domestically and internationally, provide a low-cost shipping alternative for commercial and online customers and are available for domestic shipping if you are a Priority Mail Commercial Base or Commercial Plus customer.
- Item must fit in a Flat Rate box.
Glossary
Term: Distribution locations/centers
Definition: Physical stores that have converted part of their square footage and dedicated it to fulfilling orders received online, which then get delivered to nearby customers.
Term: Gross margin
Definition: In simplest terms, it is a measurement of how profitable a company is. The math: total sales revenue minus the cost of the goods sold, divided by total sales revenue, expressed as a percentage. The higher the percentage, the more the company retains of each dollar.
Term: Inventory management system
Definition: A central database that tracks all inventory across distribution centers, retail outlets and third-party suppliers.
Term: Order fulfillment
Definition: After an online order is placed, employees of a company that has chosen a Ship From Store strategy pull products to fulfill orders.
Term: Omnichannel
Definition: Integrating different methods of shopping and shipping to create the best experience for consumers—both online and offline.
Term: Order routing system
Definition: A system that helps fulfill orders within the distributed order management system, determining how and from where products are selected.
Term: Ship From Store
Definition: An omnichannel fulfillment strategy by which retailers use stock from their brick-and-mortar stores to fulfill online orders, transforming nearby stores into convenient distribution hubs.
Term: Split order
Definition: An online order that contains multiple items and, as determined by the Order Routing System, needs to be shipped in multiple shipments from multiple store or warehouse locations.