You've probably heard the term stickering tossed around, especially if you work with warehouses, 3PLs, or platforms like Amazon. It sounds like it's just about slapping labels on boxes, but it is a big deal in eCommerce.

This guide breaks down what stickering means, how it works, and why it's a significant part of running a successful eCommerce business.

Key Takeaways

• Stickering is the process of labelling products to ensure accurate tracking and fulfillment.
  
  
• You complete manual stickering by hand, while automated stickering uses machines for speed and accuracy.
  
  
• 3PLs handle stickering by receiving products, applying labels, and storing them for fulfillment.
  
  
• Best practices include using durable labels, keeping SKUs organized, ensuring compliance, and considering eco-friendly options.
  
  
• Common mistakes include incorrect placement, inconsistent formats, and skipping stickering for bundled products.

What is Stickering?

Stickering is the process of labelling your products with the correct stickers so that they're trackable and ready for sale, such as:

• Barcodes
• SKUs
• Compliance labels

Without stickering, your inventory would be a mess, and orders would be harder to fulfill. Mistakes would also happen way more often than expected.

Manual vs Automated Stickering

Not all stickering processes are the same. Some businesses create custom stickers by hand, while others rely on machines to do the heavy lifting. Let's break it down:

Manual Stickering

It is precisely what Manual Stickering sounds like. Someone physically sticks labels onto products one by one. However, this process only works fine if you're dealing with smaller volumes. If the orders start piling up, it can get slow and prone to human error.

Automated Stickering

Automated stickering uses machines and software to print labels and apply them faster and more accurately. It is common in big warehouses and fulfillment centres. It streamlines the process and helps ensure every product has the correct label.

When and Where Does Stickering Happen in the Supply Chain

Stickering can happen at different points in your supply chain. Sometimes, it's done right at the factory before items enter the shipping process. Other times, the warehouse or fulfillment centre handles it before storage or shipping.

Either way, the goal is the same for everyone. You want to make sure your products have clear labels and are ready for tracking, storage, and delivery.

How 3PLs Handle Stickering for ECommerce Business

If you're outsourcing fulfillment, your 3PL partner can take care of stickering for you in coordination with shipping providers. Here's what that usually looks like:

1. Receive and Inspect Products

Your 3PL partner receives your shipment from the shipping carrier first. Then, they check it for damage and flag the items that need labels. This process ensures nothing slips through the cracks.

2. Apply Stickers According to Requirements

Next, the 3PL partner applies the correct stickers. It can be:

• Barcodes
• FNSKUs for Amazon
• Custom label on an envelope
• Custom branding for shipping boxes

They'll follow your exact requirements so your products are retail- and platform-ready.

3. Store and Fulfill Orders with Labelled Products

Finally, once everything has labels, the 3PL company stores your products in the warehouse. When an order comes in, the fulfillment team will complete the process on your behalf without any hiccups. It includes tasks, such as:

• Picks the items from the storage
• Packs the package
• Places the labelled items, including shipping labels
• Hand them off to the shipping services

Why Stickering Matters in E-Commerce

So why should you care about stickering? Because it impacts your shipping operations. Here's how:

Ensures Inventory and Order Fulfillment Accuracy

Proper stickering can mean a lot of things, including:

• You or the fulfillment team can pick and pack your items correctly.
• It's easier to create a cost-effective workflow.
• The overall shipping experience will improve by reducing the number of incorrect item deliveries.

Supports Branding and Compliance

Custom labels create a lasting impression and reinforce your brand. On the other hand, compliance stickers (like warning labels or important requirements) keep you out of regulatory trouble.

Reduces Shipping Errors and Returns

Correct labels mean:

• Fewer mistakes
• Lower shipping costs
• Fewer returns
• Happier customers

It's as simple as that.

Best Practices for Stickering

If you're handling stickering yourself or working with a 3PL, make it part of your shipping strategy. Here are some of the best practices:

Use Scannable, Durable Labels

Customized stickers or not, you want them to survive handling and shipping, regardless of the destination. Therefore, use scannable, durable shipping stickers. Additionally, ensure that you create a shipping label and stickers using a reliable printer or a sticker maker.

Keep SKUs and Shipping Labels Organized

Keep SKUs and labels organized to prevent confusion in the warehouse, ensuring that products are placed in either a box or a mailer correctly.

Ensure Compliance with Destination Regulations

Ensure accurate shipping by following destination and platform requirements. Also, always label your packages correctly. A simple typographical error can cost you high shipping expenses.

Consider Eco-Friendly Options

Consider eco-friendly options, such as sustainable packaging materials. These items can create a positive customer experience, especially for eco-conscious shoppers.

Common Mistakes to Avoid

Even experienced sellers slip up with stickering. Watch out for these common pitfalls:

Incorrect Placement or Labelling

Incorrect placement or labelling can make your products hard to scan. Inaccurate information, such as the package weight or addresses, can be a crucial issue you want to avoid.

When You Label Your Packages with an Inconsistent Sticker Format

Inconsistent sticker format across products can confuse the staff about where to look when completing orders. This inconsistency will slow down warehouse operations and disrupt e-commerce shipping.

Skipping Stickering for Bundled or Kitted Products

When multiple items are bundled or kitted together (e.g., a gift set or subscription box), each item might have its own SKU. Without proper labelling, warehouse staff may not know whether to scan the bundle as a single unit or separate items.

How to Create A Custom Sticker

Sometimes, basic barcodes aren’t enough. You might want stickers that also reflect your brand. Here’s how to create one:

1. Decide the Purpose. Is the sticker for branding, product details, compliance, or all three? Knowing the purpose helps you design the correct type of sticker.
   
   
2. Choose the Right Material. Think about durability. For example, waterproof vinyl stickers work well for cosmetics. Meanwhile, paper stickers might be enough for apparel.
   
   
3. Design the Layout. Include your logo, product name, barcode/SKU, and any mandatory information (like "fragile," "Made in China," or warning labels). Keep the design clean so it’s easy to read.
   
   
4. Use A Sticker Printer or Service. You can design your own stickers using free tools like Canva. Then, print them through a professional printing service or ask your 3PL if they offer custom sticker printing.
   
   
5. Test Before Mass Printing. Always print a small batch first. Make sure the barcode scans properly, the material sticks well, and the design looks good on your packaging.

Final Thoughts

At the end of the day, stickering might not be the flashiest part of running an eCommerce business. But it's definitely one of the most important.

From inventory accuracy to smooth shipping and improved customer satisfaction, the proper labels make a huge difference. And if you'd rather not deal with it yourself, that's where a 3PL comes in.

Create Lasting Impression with Stallion’s 3PL Solutions

Stallion is not just a cross-border or domestic shipping partner.

With Stallion, your trusted 3PL partner, Canadian sellers can offload the headache of stickering and fulfillment.

We can:

• Handle the labels, storage, and delivery
• Give you access to competitive shipping options
• Provide you with discounted shipping rates

Plus, we're partnered with reputable couriers like Canada Post and USPS to make your shipping more seamless. That way, you can focus on growing your business instead of worrying about logistics.

Aman Chopra

Aman looks after the content marketing department at Stallion Express. He is passionate about helping businesses grow by providing informative and up-to-date trends in the eCommerce industry. Outside the office, you can find him on the soccer field cheering on Real Madrid.

As a seller, you've likely come across the terms SKU and UPC. However, many don't know what they actually mean. Are they the same as barcodes? How do they impact businesses?

This guide explains the differences between SKU vs UPC, their meanings, and how to use both effectively to simplify your inventory, sales, and logistics.

Key Takeaways

• SKUs are internal codes used to track inventory within your business.
  
  
• UPCs are standardized product identifiers used globally for retail and scanning systems.
  
  
• Both codes help with inventory accuracy, product identification, and selling across platforms.
  
  
• Canadian sellers must get UPCs from GS1 Canada, while SKUs can be created in-house.

What is an SKU (Stock Keeping Unit)

An SKU, or Stock Keeping Unit, is a unique alphanumeric code assigned to each product in your inventory. Sellers use SKUs to track products internally, making it easier to organize, reorder, and analyze inventory. You can customize SKUs based on product features like colour, size, or brand.

For example:

You are selling a red, medium-sized t-shirt. You can have an SKU like: TSH-RED-M.

What is a UPC (Universal Product Code)

A UPC, or Universal Product Code, is a 12-digit numeric barcode that identifies a product globally. Retailers and online marketplaces use UPCs to scan and track items during checkout. Sellers must get UPC codes through GS1 Canada, the official issuing body in the country.

Unlike SKUs, UPCs are standardized and recognized by systems worldwide, making them essential if you plan to sell on Amazon, Walmart, or in retail stores.

For example:

The iPhone Lightning Cable has a product description "Electronics accessory sold in retail" and a UPC of 190198496911.

Here's the breakdown:

190198 – Manufacturer code (Apple’s GS1 prefix)

49691 – Item reference number (specific to the Lightning Cable product)

1 – Check digit (automatically calculated for barcode accuracy)

Important Notes for Canadian Sellers:

• UPCs for products you manufacture or private-label must be obtained from GS1 Canada to avoid duplication.
  
  
• You cannot make up your own UPC barcode if you're selling on major marketplaces like Amazon or Walmart.
  
  
• Each product variation (e.g., size, colour, or flavour) must have its own unique UPC.

SKU vs UPC vs Barcodes: Are They Similar?

SKUs and UPCs are both related to barcodes, but only the latter are barcodes by default. A UPC number is a barcode that can be scanned by retail systems.

SKUs, on the other hand, are just text or alphanumeric identifiers created for internal use. That said, you can still generate a barcode image if you want to use SKU labels for scanning in the warehouse or POS systems.

What are the key differences between SKU and UPC?

While both are used to identify products, they serve different purposes and are created differently. Let’s break down the key differences between these two product identifiers.

Definition

An SKU is an internal code created by a business to track and manage inventory. A UPC, however, is an external code issued by GS1 to identify products in retail systems.

Primary Function

SKUs help with inventory management, stock tracking, and reporting. Meanwhile, UPCs enable product identification and scanning in stores, online marketplaces, and throughout the supply chain.

Issuing Authority

SKUs are created in-house by the seller for internal inventory tracking. On the other hand, UPCs are assigned by GS1 Canada and follow global standards.

Uniqueness Scope

An SKU is unique within your business only. As for the UPC, it is a unique global trade item number standardized across industries.

Format and Structure

SKUs are tailored using an alphanumeric, flexible format (e.g., 'SHOE-WHT-7M'). In contrast, UPCs follow a 12-digit numeric barcode format (e.g., "123456789012").

Flexibility

SKUs are highly customizable to suit internal needs within an inventory management system. In comparison, UPCs are not customizable and follow a fixed GS1-defined structure for external use.

Customer Visibility

SKUs are usually not seen by customers unless printed on packing slips or receipts. The 12 digits of the UPC GTIN are visible on product packaging and used during checkout.

Usage Context

SKUs are ideal for internal tracking, inventory audits, and sales analytics as opposed to UPCs. The latter is used as a unique identifier by retailers and suppliers. It is also required for selling through retail channels, marketplaces, and global supply chains.

How to Manage SKUs and UPCs

Managing UPC vs SKU codes properly can save you time, reduce errors, and help your eCommerce business grow. Here are practical tips for handling each:

SKUs

1. Develop a Consistent Naming Convention

Use a clear and logical SKU system. Include product details, such as the product type, colour, and size. For example: TSH-BLK-L

• Product Type: T-Shirt (TSH)
• Colour: Black (BLK)
• Size: Large (L)

2. Use Inventory Management Software

Use tools like QuickBooks, Shopify, or Zoho Inventory. They can automate SKU tracking to reduce manual work and mistakes, and make inventory management more efficient.

3. Organize Variants with Parent SKUs

Group similar products under a parent SKU to keep your catalogue clean. You can assign each variant a unique SKU to make tracking more efficient.

For example:

SHOE-BLK could be the parent, and SHOE-BLK-8 and SHOE-BLK-9 represent size variants with their own unique SKUs.

4. Track and Analyze SKU Performance

Use your SKUs to analyze product performance by identifying which items sell best and which need restocking or discounting.

5. Train Your Team

Ensure your staff understands your SKU system properly. They should know how to use a barcode scanner to handle inventory, orders, and customer questions accurately.

UPCs

1. Get UPCs from GS1 Canada

To ensure your UPCs are globally recognized, register with GS1 Canada. They will assign you a company prefix and help you create a valid identification number for each UPC.

2. Assign UPCs Correctly

Each specific product, including every size or colour variant, needs its own unique UPC. Avoid reusing the same UPC for different items.

3. Print and Apply Barcodes

After receiving UPCs, print the barcodes and add them to your product package. The codes are used during checkout and inventory tracking. Use a reliable label printer to ensure scannability.

4. Integrate UPCs in Your Sales Channels

Input UPCs into your product listings on Amazon, Walmart, or other marketplaces. This allows accurate product identification and makes your products searchable and scannable at checkout.

5. Audit UPC Usage

Regularly review your UPC assignments to avoid duplicates or mislabeling. Keeping your database accurate ensures smooth operations across platforms and provides valuable insights into product performance.

Final Thoughts

Understanding the difference between UPCs and SKUs is crucial for Canadian online sellers. To repeat, SKUs help with internal organization, while UPCs are essential for external selling and meeting global standards. By using both codes correctly, you can reduce inventory issues and run your eCommerce business more efficiently.

Let Stallion Help You Understand SKU vs UPC Better

At Stallion, we’re more than just a shipping company—we’re a trusted 3PL partner for Canadian eCommerce sellers. Our job is to make shipping and order fulfillment easier for you.

Whether you’re adding new products, organizing your inventory, or selling on more marketplaces, we’re here to help. We take care of the behind-the-scenes work like storing your items, packing orders, and shipping them to your customers.

By letting us handle the logistics, you’ll have more time to focus on growing your business. You can easily ship to your customers regardless of where they are— sending across the country, to the US, or even internationally.

With Stallion as your partner, you can save money on shipping, deliver faster, and keep your customers happy.

Claudine Joy Rada

Candy Rada is a dedicated professional with tons of experience in content writing for the shipping industry. As a literature degree holder, she excels in creating engaging content with strategies that enhance brand visibility. She enjoys playing with her cats, reading dystopian books, and joining trivia games in her free time.

Many eCommerce businesses in Canada interchange cargo vs shipment more times than you can count. But are they actually the same thing?

This simple guide breaks down the differences between cargo and shipment. Not only that, but we will also discuss the types of each and how Canadian sellers like you can simplify your shipping strategy.

Key Takeaways

• Cargo typically refers to the goods themselves in bulk or freight form.
  
  
• Shipment is the transportation of goods from one place to another.
  
  
• Understanding both terms helps online sellers streamline logistics and avoid costly misunderstandings.

What is Cargo?

Cargo refers to the actual goods you are shipping. It could be anything, including (but not limited to):

• Raw materials for your products
• Large boxes of inventory which are heading to the warehouse
• Temperature-sensitive goods like food or cosmetics

If you think of shipping as a process, cargo is "what" you're moving from point A to point B. It's the physical goods that make your business tick.

Types of Cargo

Here's a quick breakdown of the main types of cargo eCommerce sellers might encounter:

• General Cargo. These are items that are packed individually and ready to go for transport, like electronics or clothing.
  
  
• Bulk Cargo. They are loose items, like grains or oil, that don't come in individual boxes.
  
  
• Raw Materials. Base items to create a certain product, such as lumber, metals, or fabric.
  
  
• Hazardous Materials. Anything dangerous, like batteries, chemicals, or flammable items.
  
  
• Perishable Goods. Food, flowers, or anything else that can spoil if it’s not handled properly.

What is a Shipment?

A shipment is the process of moving your cargo. It includes certain steps, such as:

1. Packing products up
2. Choosing a carrier or cargo ship
3. Arranging them for transport
4. Filling out any documents
5. Tracking it until it gets where it's going

In short, it's the "how" of getting your goods delivered.

Types of Shipment

When it comes to getting your products from one location to another, not all shipments are the same. Depending on what you're sending and where it's going, there are different shipment types to consider.

Here's a quick breakdown to help you choose the right one for your business:

Parcel Delivery

Parcel delivery is the most common type for online sellers. It covers small, lightweight packages with goods being transported through carriers, such as Canada Post, FedEx, or UPS. This typically includes individual customer orders.

It’s usually fast, reliable, and easy to track. If you’re shipping orders daily from your store, you’re likely using this mode of transportation most of the time.

Full Truckload (FTL)

FTL means your shipment takes up the entire truck. It’s ideal for large orders or bulk inventory restocks where you need the whole truck to yourself. It’s faster than sharing space with others and often more secure since your goods aren’t being handled multiple times along the route.

Less Than Truckload (LTL)

LTL shipping is when your shipment shares truck space with cargo from other businesses. It’s a great, cost-effective option if you don’t have enough goods to fill a truck on your own. It can be slower than FTL because the truck makes multiple stops. However, it's ideal for medium-sized shipments that don't need express delivery.

Freight

It is for larger, heavier shipments that can't go through standard parcel services. If you're importing or exporting large quantities of product, you'll be working with cargo and freight services. This includes options like air freight for faster delivery.

In many cases, freight forwarding helps coordinate the entire process, making shipping more efficient and manageable.

Intermodal

Intermodal shipping uses more than one mode of transport to move goods. Simply put, it's like a combination of rail and truck. It's an efficient, cost-saving method for longer distances, especially when moving shipments across provinces or international borders.

It also helps reduce handling and can be more environmentally friendly.

Also Read: Types of Shipping Methods in Canada

Key Differences Between Cargo and Shipment

Not sure whether to call it cargo or a shipment? This quick guide on shipment vs cargo will help you understand the difference and know when to use each term.

Size and Quantity

The size and quantity highlight the key difference between shipment and cargo. Cargo typically refers to large-scale or bulk goods, like crates, pallets, or containers. On the other hand, a shipment can be of any size, from a single package to a full truckload.

Purpose and Destination

Cargo is the actual goods or merchandise being transported. Meanwhile, shipment refers to the act of sending those goods from point A to point B within the supply chain.

Legal and Documentation

Both need some paperwork to be processed. Shipments require shipping labels and customs forms as part of proper shipment management. Cargo needs safety or handling certificates, depending on what you're shipping.

Transportation and Handling

Cargo requires special handling as part of effective cargo management. Shipments, on the other hand, are planned based on timing, location, and cost.

Insurance and Liability

Since issues are common in any action of shipping, shipments are usually insured during transit. Meanwhile, cargo insurance depends on how valuable the set of goods is and how they're being moved.

Packaging

Cargo can be loose or bulk. Shipments are usually packed, labelled, and ready to go to the customer.

Final Thoughts

If you're selling online in Canada, knowing the difference between cargo and shipment isn’t just a "nice-to-know"—it’s essential. It helps you pick the right services, manage costs better, and make sure your packages show up where and when they’re supposed to.

Confused About Cargo Vs Shipment? Let Stallion Simplify It for You

Shipping doesn't have to be a pain. As a trusted 3PL company, Stallion helps Canadian online sellers like you make sense of it all.

Whether you're sending orders within Canada or managing large freight going to the US, we've got your back—with solutions designed to boost customer satisfaction at every step.

We provide:

• Affordable rates
• Smooth logistics process
• Full tracking

Let us take the shipping stress off your plate—get started with Stallion today.

Jose Sagun

Jose is Stallion's Senior Business Analyst. He helps improve the company’s shipping processes, works closely with delivery partners, and looks at shipping data to find the best prices for our customers. Outside of work, Jose has a passion for running, regularly completing 5k and 10k runs, with the goal of running a full marathon in the near future.

Running an online store in Canada is exciting, but let's be real—it also comes with its fair share of challenges. Between keeping products in stock, managing suppliers, and making sure customers get their orders on time, things can get overwhelming. Here's where supply chain integration comes in.

In this guide, we'll break it down in simple terms and share practical steps you can take to make integration work for your eCommerce business.

Key Takeaways

• Supply chain integration connects every part of your business for smoother operations.
  
  
• It has four main types: vertical, horizontal, internal, and external.
  
  
• Utilizing technology and communication effectively helps you ensure everything works together correctly.
  
  
• Challenges can exist during the integration process, but the payoff is worth it. You can expect efficiency, cost savings, and happier customers.

What is an Integrated Supply Chain?

An integrated supply chain is when all the different parts of your business connect and work well together, such as:

• Suppliers
• Warehouses or fulfillment centres
• Transportation
• Communication (yes, including that!)

Think of it this way:

Instead of treating each step like its own little island, integration builds bridges so information, products, and decisions flow freely. For sellers, it could mean your supplier in Toronto, your fulfillment partner in Vancouver, and your customer across North America are all in sync with each other.

Types of Supply Chain Integration

There isn’t just one way to integrate your supply chain. Let’s break down the four main types with simple examples:

Vertical Integration

Vertical integration is when a company takes control of more than one step in its supply chain. It allows businesses to reduce dependency on outside providers, cut costs, and gain more control over quality and timelines.

Example:

Let's say you sell handmade candles online. Instead of buying your raw material (aka wax) from a supplier, you decide to start producing your own. Now you're controlling both production and retail, cutting costs and ensuring quality.

Horizontal Integration

Horizontal integration happens when businesses combine forces at the same level of the supply chain. Companies often utilize it to increase market share, expand product offerings, or streamline operations by leveraging shared resources.

Example:

Say you own an online clothing store. Instead of selling your apparel alone, you partnered with another Canadian clothing retailer. You merge both of your products to expand your selection and share logistics resources. Together, you're stronger and can serve customers faster.

Internal Integration

Internal integration focuses on getting your own departments or teams to work together. Companies can minimize errors, boost efficiency, and deliver a smoother customer experience through improved collaboration and communication.

Example:

Your marketing team runs a promotion. The thing is, your warehouse team doesn't know anything about it. It could lead to overselling. With internal integration, your team share information, so when marketing launches a sale, the inventory team is ready.

External Integration

External integration involves building strong partnerships with outside players, such as suppliers, couriers, and fulfillment centres. Strong external integration can:

• Ensure faster fulfillment
• Improve customer satisfaction
• Create a more resilient supply chain

Example:

As a seller in Toronto, you partner with a 3PL that integrates directly with your online store. When a customer orders from your Shopify site, the fulfillment process automatically kicks in.

Core Elements of Supply Chain Integration

Let's examine the building blocks that make the supply chain process integration work:

Information Flow

Clear communication throughout the entire process enhances supply chain performance. It may be just a simple flow of information, but it can prevent mistakes and delays. Think shared dashboards, real-time updates, and automated order tracking.

Order and Inventory Management

Proper supply chain management systems in place allow you to know:

• What's in stock
• What's running low
• Which are on their way

It helps avoid overselling or stockouts.

Transportation and Warehousing

A smooth flow of goods is critical. Integrated shipping and storage help streamline delivery so packages get where they need to go. It doesn't matter whether that's across Canada, into the US, or internationally.

Supplier and Partner Coordination

Good relationships with suppliers and partners mean fewer hiccups. Integration here can help you pivot quickly if demand spikes or supply issues arise.

Technology Systems

Many technology systems can make your process more seamless. Some tools to help automate tasks and provide real-time supply chain visibility, such as:

• ERP (Enterprise Resource Planning). ERPs are like your master control system. It keeps everything organized in one place, so all departments stay on the same page. You can find all the necessary files here, including inventory and sales, accounting, and customer data.
  
  
• WMS (Warehouse Management Systems). WMS is the tool that makes sure your warehouse runs smoothly. It tracks where you can find the items, what's in stock, and helps workers pick, pack, and ship orders efficiently.
  
  
• API Connections. You can compare API to digital bridges. They let different software tools "talk" to each other automatically. It's like your online store sending order details directly to your warehouse system without manual input.

Challenges in Supply Chain Integration

Using supply chain integration strategies sounds great, but they come with a few hurdles. Here are some of the challenges you might encounter:

Data Silos

Data silos are pockets of information stored in separate systems or departments that don't readily share or connect. If your sales, inventory, and supplier data live in separate systems, it's hard to get the entire picture.

Example:

Your sales team might keep selling an item that looks "in stock" in their system, while your warehouse software shows you don't have it in stock. Integration fixes this issue by connecting everything and preventing those mix-ups.

Poor Communication

Ever had a supplier not update you on delays? Lack of communication can disrupt your entire supply chain. Imagine promising customers next-day shipping, only to find out that there are delays in your supplier's shipment. Isn't it frustrating?

Resistance to Change

Not everyone likes new systems. You can expect your staff, suppliers, or even supply chain partners to resist change. For instance, a warehouse staff used to manual spreadsheets may push back against using new scanning software. It can delay your entire supply chain operations and affect your overall performance.

New Systems or Tools Costs

Technology investments can be pricey upfront. The cost of new supply chain solutions often feels overwhelming, especially when budgets are tight. Picture sending thousands on a new WMS, only to worry about how expensive it is while other parts of the business struggle for resources.

Steps to Start Integrating Your Supply

So, how do you actually get started at this stage of the supply chain? Here's a beginner-friendly roadmap:

1. Assess Your Current Supply Chain Structure

Look at what's working and where the breakdowns happen. Is there a delay in shipping? How about stocking issues? Are there any communication gaps? All of these factors can affect an effective supply chain.

2. Set Clear Integration Tools

In anything you do, always remember to create a list of measurable goals. Do you want faster shipping times? Better inventory accuracy? Decide what success looks like to you. It ensures your integrated supply chain process stays focused and aligned with business needs.

3. Invest in the Right Technology

Yes, technology can be costly, but investing in the right tools can improve your systems. Even basic tools, such as inventory management software or automated shipping solutions, can make a significant difference. The right tech helps you connect different supply chain functions and reduces manual errors. So, see them as your partners who drive efficiency and business growth.

4. Improve Communication with Partners

Keep suppliers, couriers, and fulfillment partners in the loop. Clear communication prevents issues from snowballing. And yes, even those you think of as minor ones. Building strong relationships within your supply chain network also fosters trust and faster problem-solving.

5. Monitor and Adjust as Needed

Remember: integration isn't just a one-and-done deal. It's an endless journey that you want to keep improving. So, track your progress, gather feedback, and tweak your systems along the way. Continuous monitoring helps you stay agile and adapt to shifts in supply and demand or market conditions.

Key Benefits of Supply Chain Integration

Let's talk about why integration is worth the effort. Here are some of the key benefits when your supply chain works as one unit:

• Improved Efficiency. Tasks that used to take hours (like updating inventory manually) now happen automatically.
  
  
• Lower Costs. Better coordination means fewer errors, less wasted stock, and smarter shipping choices.
  
  
• Faster Delivery Times. Integrated systems speed up order fulfillment and reduce delays.
  
  
• Stronger Partnerships. Suppliers and fulfillment partners trust businesses that communicate clearly.
  
  
• Better Customer Experience. Who doesn't want to receive their packages faster? Any customer would love that, especially for urgent orders. So, when operations run smoothly, you can provide a better customer experience.

Final Thoughts

Yes, supply chain integration may sound technical. However, at its core, it's just about getting everything in your business to work together. For online sellers like you, it can mean fewer headaches, faster shipping, and happier customers. Start small, focus on communication, and build from there. You'll see the results.

Improve Integrated Supply Chain Management with Stallion’s All-in-One Fulfillment Solutions

At Stallion, we get it! Running an online business is tough, especially when logistics get in the way of growth. That's why we're here.

As a trusted 3PL company, you get more than just shipping. You can take advantage of:

• All-in-one-fulfillment solutions
• Cheapest shipping within Canada and internationally
• Seamless integrations with platforms like Shopify, Amazon, and eBay
• Real-time tracking and visibility
• Warehousing and inventory support
• Customs clearance expertise for international shipments
• Dedicated customer support

With Stallion, it's easier to focus on what matters most: growing your business without worrying about logistics.

So, if you're ready to simplify your supply chain, create an account with us today!

Aman Chopra

Aman looks after the content marketing department at Stallion Express. He is passionate about helping businesses grow by providing informative and up-to-date trends in the eCommerce industry. Outside the office, you can find him on the soccer field cheering on Real Madrid.

Kitting may sound like an eCommerce jargon. But in reality, it is a helpful strategy that can make your order fulfillment process faster and easier. If you run an online store and sell multiple items together, this process can help you save time and reduce mistakes.

In this blog, we'll explain what it is, how it works, and why it matters for your online business.

Key Takeaways

• Many fulfillment centers use kitting to put several products together into one package.
  
  
• It helps speed up shipping and reduce packing errors by ensuring items are kitted in advance.
  
  
• Many eCommerce sellers use a fulfillment partner or 3PL to handle kitting because it saves them time, reduces manual work, and ensures kits are assembled accurately at scale.

What is Kitting?

Kitting involves grouping various individual items and packing them together as one unit. You don't have to pick and pack each item of an order one by one. Instead, kitting lets you pre-pack everything (like a subscription box) into a single bundle.

That way, your team can treat it as one product with its own label and stock keeping unit (SKU). While this is the general idea, kitting can take on different meanings depending on the context, especially in logistics versus warehouse operations.

Kitting in Logistics

In logistics, kitting refers to the strategic planning and coordination of grouping products before shipment.

Key Focus:

• Streamlining the fulfillment process
• Improving inventory management
• Reducing handling time
• Aligning kitting with shipping and delivery timelines

Example:

Pre-assemble product kits in advance to expedite the order-to-ship process during peak seasons.

Kitting in a Warehouse

Warehouse kitting, on the other hand, is the actual process of assembling multiple individual items into a single kit or package. It's part of the daily warehouse operations that ensure each kit is accurately built and ready for storage or shipment.

Key Focus:

• Assembling items correctly
• Labelling and packaging kits
• Managing space and labour efficiently
• Supporting inventory tracking

Example:

A warehouse worker gathers components (e.g. charger, cables, and manual) to create a complete electronics kit.

How is Kitting Different from Bundling?

Many people interchange kitting and bundling because of the similarities they share. However, there's one big difference that distinguishes one from the other:

• Kitting. Items are packed together before the customer orders. The kit has its own SKU and is stored as one product.
  
  
• Bundling. Items are grouped together after the order is placed. They are still picked and packed separately.

Kitting is better for repeat orders or ready-made gift sets. In contrast, bundling works well when customers can choose their product combinations.

How Does A Kitting Service Work in Fulfillment?

Here’s how a full kitting process usually works in five simple steps:

1. Identify Kit Components

You choose which individual products go into each kit. These kit components can be related items, promotional sets, or seasonal bundles.

2. Assemble the Kits

Once you've chosen the kit's individual components, the assembly process begins. The picker will retrieve multiple products and pack them into a single unit, such as a box or bag. Upon picking, the warehouse staff also follows any special instructions for inserts or branding.

3. Assign a New SKU

With the new kit, you will also create a new SKU. These SKUs will be added to your inventory system, which will be tracked and managed like a single item.

4. Store the Completed Kits

Once ready, the kitted products are stored in the warehouse, so they're easy to locate and ship when a customer buys.

5. Pick, Pack, and Ship

As mentioned, kitting products are sold as a single item. When a customer orders a kit, the warehouse staff that fulfills orders will treat it like any other product in the picking and packing process. They simply add a shipping label and send it out for shipment.

Different Types and Examples of Kitting

Here are the different types of kitting used in eCommerce and logistics. Each serves a specific purpose based on business goals, product type, or industry. We have also provided clear, real-world examples to show how kitting works in action.

1. Product Kitting

Product Kitting involves grouping individual, standalone products into a single, sellable unit. Each product in the kit can exist and be sold individually. However, when bundled together, they create a more convenient offer for the customer.

Example: A skincare set that includes cleanser, toner, and moisturizer sold as a single kit.

Best For:

• Product bundles
• Gift sets
• Subscription boxes

2. Build-to-Order Kitting

Also known as on-demand kitting, build-to-order kits are assembled only after a customer places an order. Instead of preparing kits in advance, individual items are selected and packed based on the buyer's specific choices.

It offers greater flexibility and personalization. The customers can craft their orders according to their preferences, such as product type, colour, or function, among others.

Note that nothing is packed ahead of time. This allows your business to reduce excess inventory, avoid dead stock, and maximize storage efficiency. It's ideal for brands that want to offer customization without overproducing pre-set kits.

Example: A custom computer build where customers choose specific components (CPU, RAM, storage)

Best For:

• Customizable products
• Made-to-order items
• Personalized gift sets

3. Pre-Pack Kitting (Batch Kitting)

Pre-kitting, also known as batch kitting, consists of assembling multiple kits in advance in large quantities to meet forecasted demand. You may confuse this method with product kitting, but the two serve slightly different purposes—timing and volume.

Batch kitting is all about forecast demand, proactivity, and high-scale operation. Instead of waiting for individual orders to come in, businesses prepare kits ahead of time to ensure faster fulfillment during peak shopping periods.

Example: A warehouse pre-packing 1,000 holiday bundles in preparation for peak season.

Best For:

• High-volume items
• Seasonal promotions
• Fast-moving SKUs

4. Promotional Kitting

Promotional kitting is the process of grouping multiple products for the sole purpose of promoting an event, a brand, or a specific product. The goal isn't just to drive sales. This kit offers brand exposure, attracts new customers, and creates a memorable unboxing experience.

Example: A back-to-school kit that includes branded merchandise and product samples.

Best For:

• Limited-time promotion
• Seasonal sale
• Marketing campaign
• Event giveaway

5. Instructed or Assembly Kit

Instructional, or assembly kitting, is designed for customer assembly or hands-on use. Each kit includes all the necessary components along with clear instructions. Its main goal is to allow the buyer to build, create, or complete a task themselves.

It adds value by offering a complete, ready-to-use experience in one convenient package.

Example: A DIY painting kit that includes a canvas, brushes, paint, and instructions.

Best For:

• Crafts and DIY
• Home improvement
• Educational
• Recreational
• Project-based

6. Private Label Kitting

Private Label Kitting involves assembling products—often from different manufacturers—into a single kit that is rebranded and sold under your label. In other words, the kits are packed and labelled as if they come from a single brand. But, in reality, they may originate from multiple sources.

The final product carries your branding, offering a seamless customer experience.

Example: A beauty kit with a cleanser, serum, and moisturizer sourced from different suppliers. Each item is repackaged with the brand’s own logo, design, and product information, then sold as a branded bundle under their name.

Best For:

• White-label sellers
• Subscription boxes
• Retail brands expanding product lines

Role of a 3PL Partner or Fulfillment Partner in the Kitting Process

A third-party logistics (3PL) provider can take care of the whole kitting process for you. They can be your fulfillment partner in completing specific tasks, such as:

• Receiving your inventory
• Assembling and labelling your kits
• Managing storage and inventory
• Shipping out orders quickly and accurately

Working with a 3PL helps save time and money, especially as your business grows.

Benefits of Kitting for an eCommerce Business

Kitting provides many benefits that can improve how your business handles inventory and order fulfillment. Here are some ways in which kitting can help your operations:

Prevent Dead Stock

With kitting, you're moving slow-selling items before they take up too much space or lose value. By bundling these products with popular items in a kit, they can be shipped together as part of a more attractive offer. This strategy prevents dead stock with the possibility of increased sales.

Faster Order Processing

Kits are pre-assembled and stored as one item. Therefore, staff members can easily pick and pack more quickly, reducing fulfillment time and simplifying the shipping process.

Reduced Shipping Errors

With fewer steps, there's less chance of sending the wrong items. The result? Optimize accuracy and boost customer satisfaction.

Lower Labour and Packaging Costs

Packing items in advance saves time and reduces materials used. More than that, it provides you with significant cost savings due to reduced labour costs.

Maximize Warehouse Space

You can consolidate multiple SKUs into a single SKU, freeing up shelf space. It also helps keep inventory more organized and easier to manage.

Enhanced Customer Experience

Kitting can create a well-organized supply chain, allowing customers to receive neatly packed, complete orders that arrive on time. This increases trust and encourages repeat purchases.

Final Thoughts

Kitting offers a simple and effective way to improve how you handle orders. It’s great for busy eCommerce sellers who offer bundles, promotions, or gift sets. Whether you do it in-house or by using kitting services from a 3PL, it can help you save time, cut costs, and make your customers happier.

Let Stallion Take Care of Your Kitting from Start to Finish

Stallion is your trusted 3PL company offering reliable kitting and fulfillment services. We make the process easy, from receiving your products to assembling kits and delivering them to your customers.

How does Stallion do it? We offer two ways to handle kitting: virtually and manually.

• Virtual Kitting. We do not physically assemble the products beforehand. Instead, the bundle is sold as a kit but broken down in our system into its component SKUs. Using our shipping software, each virtual kit includes the component SKUs and quantities to be picked and packed. This can be set up through a CSV template for bulk creation or by updating the individual SKU directly.
  
  
• Manual Kitting. It involves physically gathering and assembling products before shipment. Products may come from existing warehouse inventory (deducted from the system) or from inventory sent physically for the bundled SKU. Clients provide details such as component SKUs, quantities, and any extra packaging requirements.

If you’d like to learn more about our kitting services, get a quote on kitting rates, or learn about the shipping costs, don’t hesitate to contact our customer support team.

What are you waiting for? Let Stallion help you kit smarter and ship faster today.

Claudine Joy Rada

Candy Rada is a dedicated professional with tons of experience in content writing for the shipping industry. As a literature degree holder, she excels in creating engaging content with strategies that enhance brand visibility. She enjoys playing with her cats, reading dystopian books, and joining trivia games in her free time.

Running an online business is more than just managing sales; it's about building a strong foundation. You also need to handle your stock efficiently. Finished goods inventory plays a significant role in ensuring you meet customer expectations while keeping costs under control.

This guide will walk you through the essentials of finished goods inventory, its challenges, and how to manage it effectively.

Key Takeaways

• Finished goods inventory refers to products ready for sale. It includes items that have completed the entire production process. In short, these are products on shelves or in warehouses waiting to be purchased.
  
  
• Understanding what qualifies as finished goods (FG) enables sellers to better classify, manage, and control stock levels.
  
  
• Types of finished goods include retail, wholesale, and manufactured.
  
  
• Proper calculation and tracking prevent stock issues and excess costs.
  
  
• Using software, audits, and demand forecasting improves inventory value and flow.

What is Finished Goods Inventory?

Finished goods inventory refers to products that are entirely manufactured or assembled and are ready for sale to customers. In other words, this means that the items are already packaged, labelled, and stored, waiting for order fulfillment. Unlike raw materials or work-in-progress inventory (WIP inventory), finished goods are immediately market-ready.

FG Meaning and Its Relevance in Inventory Management

In inventory management, you usually deal with three categories: (1) raw materials, (2) work-in-progress, and (3) finished goods. As mentioned, unlike raw materials inventory, finished goods are fully prepared for sale and ready to reach customers.

Now, you may have heard of the term FG. It's just short for finished goods. This term is commonly used in warehouse systems, accounting software, and reports. Understanding this is crucial since it appears in every inventory account, such as:

• The company's balance sheets
• ERP systems
• Fulfillment centre workflows

For eCommerce sellers like you, recognizing this abbreviation helps you stay aligned with logistics teams, accountants and suppliers.

Types of Finished Goods Inventory

FG inventory can vary depending on your business model. Here are the three main types and examples of finished goods for every kind that all online sellers should understand:

Retail Finished Goods

Retail Finished Goods are finished products that go directly to customers through online stores. It may include clothing, gadgets, or home essentials, among others, stocked in a fulfillment centre.

Example:

A Toronto-based Shopify seller stocks eco-friendly water bottles in a warehouse. Each time a customer orders online, the shipping company ships the bottle directly to their doorstep.

Wholesale Finished Goods

Wholesale Finished Goods are products that retailers or distributors buy in bulk. If you sell large quantities to other stores, your stock counts as final products.

Example:

A cosmetics brand supplies boxes of skincare products to nationwide retailers like Shoppers Drug Mart. However, they don't ship to customers individually. Instead, they move pallets of finished goods to distribution centres. Then, the distribution centres will ship the items to the retailers or customers.

Manufactured Finished Goods

These products come from your own production or assembly. Think of it this way: if you run a brand that makes handmade furniture, your inventory counts as manufactured goods.

Example:

A small woodworking shop in Vancouver produces custom wooden chairs. It goes through the usual manufacturing process. Once completed, the shop stores them as finished goods until an order comes in from their online store or a bulk buyer.

How to Calculate Finished Goods Inventory Formula

You need accurate numbers to manage inventory effectively. Calculate your finished goods inventory using this formula:

Finished Goods Inventory = Beginning Inventory + Cost of Goods Manufactured – Cost of Goods Sold

This finished goods formula gives you a snapshot of available stock at the end of an accounting period. When you calculate this regularly, you prevent overstocking and fulfill orders on time.

Example:

Let's say you run an online apparel store in Canada. At the start of the month, you have 500 jackets in stock (Beginning Inventory or Beginning Finished Goods Inventory). During the month, you manufacture or purchase another 300 jackets (Cost of Goods Manufactured). You then sell 600 jackets (Cost of Goods Sold).

Finished Goods Inventory = 500 + 300 – 600 = 200 jackets remaining

By calculating the finished goods inventory value, you can precisely determine how many jackets remain to fulfill future orders and when to restock.

Common Challenges in Finished Goods Inventory Management

Managing finished goods and inventory levels comes with hurdles. Here are the key challenges that can affect profitability and efficiency:

Overstock and Understock Risks

Overstocking and understocking are among the most common challenges in inventory management. If you stock too many inventory items, you pay higher storage costs. If you stock too few, you lose sales. Without proper forecasting, finding the balance becomes difficult.

Poor Forecasting and Data Accuracy

Demand miscalculations can happen, and it's understandable. However, this does not exempt you from its consequences. When this happens, you either end up with excess stock or miss opportunities to sell.

Without real-time data, it becomes harder to determine your finished goods inventory and keep numbers accurate. Poor forecasting and data inaccuracy pose one of the most significant risks businesses face in managing inventory.

Storage Inefficiencies and Outdated Systems

When you rely on outdated tools or manual spreadsheets instead of modern inventory management systems, operations slow down. Poor warehouse organization and weak tracking systems further increase costs and errors.

Tips to Optimize Finished Goods Inventory

You can streamline finished goods inventory with the right strategies. Here are the ways you can optimize FG inventory:

Use Inventory Management Software

Adopt Enterprise Resource Planning (ERP) systems. It's a software that connects and streamlines different business processes, such as accounting, purchasing, and inventory. You can also use eCommerce integrations to track inventory levels and reduce errors.

Audit Inventory Regularly

Run frequent audits to confirm your records match actual stock. By catching discrepancies early, you keep reports accurate and ensure healthy inventory turnover.

Integrate Demand Forecasting

Use past sales and seasonal trends to predict future demand. Accurate forecasting helps you avoid overstocking or stockouts.

Align Inventory with Marketing and Sales Planning

Sync your inventory to ensure alignment with promotions, product launches, and seasonal campaigns.

For example:

Preparing stock ahead of holiday sales or back-to-school season helps you improve fulfillment speed and boost customer satisfaction.

Final Thoughts

Canadian online sellers need strong finished goods inventory management to stay competitive. You keep the supply chain running smoothly while maintaining fulfillment efficiency and costs under control when you:

• Understand the FG meaning
• Identify your inventory types
• Calculate stock properly

In the bigger picture, effective finished goods management reduces delays and improves customer satisfaction. It also ensures every part of the supply chain works in sync for sustainable growth.

Make Managing Finished Goods Inventory Hassle-Free with Stallion's 3PL Solutions

At Stallion, we go beyond shipping. Our 3PL team helps Canadian eCommerce businesses manage what finished goods inventory would typically demand:

• Storage
• Picking and Packing
• Cheapest shipping within Canada and internationally

With that, you can cut costs, save time, and focus on growing your brand.

Ready to simplify your inventory and fulfillment? Partner with Stallion today and ship smarter with a trusted 3PL by your side.

Jose Sagun

Jose is Stallion's Senior Business Analyst. He helps improve the company’s shipping processes, works closely with delivery partners, and looks at shipping data to find the best prices for our customers. Outside of work, Jose has a passion for running, regularly completing 5k and 10k runs, with the goal of running a full marathon in the near future.

Running an online store means getting your orders out quickly and correctly. But with everything you need to work on, it can be a little challenging. That's where pick and pack fulfillment services come in.

It might sound like warehouse jargon, but it’s actually one of the most important parts of the eCommerce process. Let’s break it down.

Key Takeaways

• Pick and pack is the systematic process of retrieving a customer order (picking) and preparing it for shipment (packing).
  
  
• There are different strategies for picking and packing depending on your business size and order volume. Some of the options are picking and cartonization, which are implemented based on operational scale, SKU complexity, and order volume.

What is a Pick and Pack Fulfillment?

Pick and pack is a fulfillment method of retrieving the items from the warehouse shelves and preparing them for shipment. It doesn't matter whether you're doing it yourself or working with a third-party logistics (3PL) provider. This process needs to be fast, accurate, and efficient.

How Does A Pick and Pack Service Work?

Here’s what happens behind the scenes when an order comes in:

1. Receiving. Upon receiving your inventory, the warehouse logs it into its system. Then, they will organize it properly to make the picking process easier later on.
   
   
2. Picking. When a customer places an order, the staff gets the items from the shelves based on what was listed on the order form.
   
   
3. Packing. Next, the staff packs the orders securely using the right materials. They can use boxes, bubble wrap, branded inserts, or anything else that's needed.
   
   
4. Shipping. Once packed, the order gets labelled and shipped out through a courier. Tracking info is usually sent straight to your customer.

Common Picking Strategies in E-Commerce

There’s no one-size-fits-all method when it comes to picking. Here are the most common approaches:

Piece Picking

This method is also known as discrete order picking. It involves picking products for one order at a time. The warehouse associate retrieves all the SKUs for a single customer order before processing on to the next.

It is best suited for businesses with low order volumes, limited SKU variety, or high customization per order.

• Pros. Simple to execute, minimal complexity
  
  
• Cons. Time-consuming, inefficient at scale due to high travel time per order

Batch Picking

In contrast to piece picking, batch picking is the process of picking multiple orders simultaneously. The staff retrieves items in bulk based on common SKUs across those orders. Then, the orders are sorted and packed accordingly.

It is ideal for moderate to high-volume warehouses with frequent SKU overlap.

• Pros. Reduces walking time, improves pick efficiency, speeds up fulfillment
  
  
• Cons. Requires post-pick sorting (which may add complexity)

Zone Picking

Zone picking is where the warehouse is segmented into dedicated zones. Each picker is assigned to one of the dedicated zones and is responsible for items within that area. Orders are either moved between zones or consolidated at a central packing station.

It is highly effective for large warehouses with a broad range of SKUs and multiple employees.

• Pros. Reduces picker travel time, supports specialization and throughput
  
  
• Cons. Requires coordination between zones; Implementation of a Warehouse Management System (WMS) is often needed.

Wave Picking

Wave picking organizes order picking into scheduled waves based on criteria, such as shipping deadlines, carrier pickup times, or order types. The warehouse workers pick items in time-specific blocks to optimize labour and equipment usage.

This process strategically fits high-volume, time-sensitive operations with predictable shipping cutoffs.

• Pros. Streamlines labour planning, supports batch and zone integration, and aligns with outbound schedules
  
  
• Cons. Requires advanced planning and usually a WMS to execute effectively.

Common Packing Methods in a Warehouse

The packing part isn’t just about tossing items in a box. Here’s what helps streamline it:

Cartonization

Cartonization is the process of determining the optimal box size and type for one or more items in an order. It can be based on product dimensions, weight, and fragility. Advanced cartonization, on the other hand, often involves algorithms or WMS. This automatically suggests the most space and cost-efficient packaging configuration.

Purpose:

• Minimize dimensional weight (DIM weight) charges
• Reduce material waste
• Streamline packing efficiency.

Benefits:

• Lowers shipping costs by avoiding oversized packaging
• Reduces environmental impact from excess materials
• Enhances warehouse productivity with faster packing decisions

Branded Packaging

Branded packaging involves customizing the unboxing experience using company-branded elements, including (but not limited to) printed boxes, stickers, and thank you cards. It extends the company's branding into the physical delivery process, making it a marketing touchpoint.

Purpose:

• Strengthen brand recognition
• Create a memorable customer experience
• Boost post-purchase engagement

Benefits:

• Increases customer retention and brand loyalty
• Encourages user-generated content (e.g., unboxing videos)
• Differentiates the brand in a competitive market

Kitting

Kitting is the process of pre-assembling individual items into a single unit (kit) before an order is placed. This is commonly used for promotional bundles, subscription boxes, or multi-SKU sets that are sold as one product.

Purpose:

• Simplify the pick and pack process for bundled items
• Improve order accuracy and speed

Benefits:

• Reduce labour and handling time
• Speeds up order fulfillment during high-volume periods
• Allows for creative merchandising (e.g., gift sets, starter kits)

Why Does an Efficient Pick and Pack Process Matter?

An efficient pick and pack process is the heartbeat of any successful eCommerce fulfillment operation. Here's why utilizing the best practices is crucial for both operational success and customer satisfaction:

Streamlined Order Fulfillment Process

A clear order fulfillment process in your pick and pack warehouse helps you move quickly from order received to order shipped—no delays, no confusion.

Improved Accuracy and Customer Satisfaction

An efficient pick and pack order fulfillment, plus a reliable pick and pack software, will let customers get the right products on time. With this, they're more likely to return and leave good reviews.

Cost-Effective for Small and Growing Businesses

Time is money. The faster and more accurately you fulfill orders, the more you save on labour, mistakes, and returns. This makes your warehouse operations and inventory management more efficient and cost-effective.

Scalability During Peak Seasons

A systematic pick and pack fulfillment process helps you stay on top of holiday rushes and sales events without falling behind.

Is Pick & Pack Right for Your Business?

If your business is growing and you’re spending more time packing boxes than scaling your brand, it might be time to outsource pick and pack to a trusted fulfillment center.

A reliable pick and pack partner can help you focus on what really matters—your products, your marketing, and your customers.

Final Thoughts

Pick and pack fulfillment may not be the flashiest part of your business, but it’s one of the most important. Using the right pick and pack methods means fewer mistakes, faster shipping, and happier customers—all while saving time and money.

Streamline Your Pick and Pack Process with Stallion

If you're managing growing order volumes and need a reliable solution, Stallion makes things fast and simple. As your trusted Canadian 3PL, we help online businesses get packages into customers' hands quickly and affordably.

Whether you're shipping within Canada or internationally, Stallion's fulfillment solutions are built to help your business grow, minus the logistics headaches. From accurate picking to efficient pack strategies in our fulfillment warehouse, we take care of the heavy lifting.

And you?

You can focus on scaling your business!

So, do you want to streamline your fulfillment? Now’s a great time to get started—sign up today and simplify your shipping with Stallion.

Aman Chopra

Aman looks after the content marketing department at Stallion Express. He is passionate about helping businesses grow by providing informative and up-to-date trends in the eCommerce industry. Outside the office, you can find him on the soccer field cheering on Real Madrid.

Running an online business is exciting. But let's be honest, managing orders, packing boxes, and figuring out shipping can eat up your entire day. As your store grows, those late-night packing sessions and endless trips to the post office just don't cut it anymore. That's where Canadian warehouse shipping comes in.

In this blog, we'll break down how Canadian warehouse shipping works, who it's for, and how to choose the right partner to make your life easier.

Key Takeaways

• Canadian warehouse shipping helps online sellers simplify fulfillment and cross-border delivery.
  
  
• It’s beneficial for businesses scaling in Canada and expanding into the US market.
  
  
• The process covers inventory storage, order picking/packing, and domestic or cross-border shipping.
  
  
• Selecting the right partner ensures smoother operations, lower costs, and more satisfied customers.

What is Canadian Warehouse Shipping?

Canadian warehouse shipping is the system that handles the picking, packing, and shipping of customer orders.

If you're running an online store, you already know that order fulfillment can become complicated quickly. The system allows you to go back to your usual pace. Think of it as outsourcing the "back-end" of your eCommerce business.

You can focus more on sales and growth rather than taping up boxes.

Also Read: E-Commerce Warehouses: How Do They Function (2025)

Who Uses These Services?

One thing to remember: Canadian warehouse shipping isn't just for massive companies. It's for every business at all stages. Here are some business models that take advantage of this system:

E-Commerce Sellers

eCommerce or online sellers need to keep up with lightning-fast delivery expectations. That's why Shopify, Amazon, and eBay sellers use this system to compete with big players while saving time on fulfillment.

Small Businesses Expanding into the US Market

Are you looking to tap into the US market? Warehousing in Canada, especially near the border, makes cross-border delivery smoother and less intimidating. It allows you to test the waters in a bigger market without dealing with complicated logistics by yourself.

Subscription Box and DTC Brands

Subscription boxes and direct-to-consumer (DTC) businesses thrive on consistency. A reliable warehouse partner helps you handle bulk shipments and recurring orders without the stress of packing and shipping hundreds of boxes each month.

How Does Canadian Warehousing Shipping Work?

The process may sound complicated at first, but once you break it down, it’s pretty straightforward. Here’s how it typically works behind the scenes:

1. Inventory Arrival at the Warehouse

It all begins when your products arrive at the warehouse. The team receives your goods, checks the quantities, and logs everything into the system so you always know what’s available.

2. Storage and Inventory Management

Once received, a secure facility stores your items. Warehouses use advanced software that tracks your real-time inventory, so you don't have to guess whether you're running low.

3. Order Fulfillment and Pick & Pack

When a customer places an order, the warehouse steps in. Staff locate the product (pick), package it securely (pack), and prepare it for shipping. It keeps fulfillment efficient and professional without you lifting a finger.

4. Shipping and Delivery

Finally, the warehouse ships the order. Depending on your customers, it could mean fast delivery across Canada or smooth cross-border logistics into the US. Either way, the warehouse ensures the order reaches its destination.

Benefits of Using Warehouse Services in Canada

So, why do sellers choose Canadian warehouse shipping in the first place? Beyond saving time, here are some advantages that directly impact your business growth:

Faster Shipping to Canadian and US Customers

Being closer to your buyers cuts down delivery times. Faster, reliable shipping can boost customer satisfaction and also encourage repeat sales.

Reduce Cross-Border Hassles

If you’ve ever dealt with customs paperwork, you know it can be overwhelming. Good thing, a warehouse partner can handle most of the burden for you. It simplifies cross-border logistics services.

Better Inventory Control and Scalability

As your business grows, so does your inventory. A warehouse partner gives you room to scale without worrying about running out of storage or hiring extra staff.

Also Read: Ending Inventory: Definition, Formula, and Calculation

Cost Saving on Bulk Shipping and Storage

Buying and storing products in bulk usually comes with discounts. Add to that the carrier partnerships warehouses often have for shipment and freight, and you’re looking at significant long-term savings.

Key Factors to Consider When Choosing A Warehouse Partner

Another thing to remember, not all warehouses are created equal. Here are some factors you’ll want to keep in mind before making a decision:

• Location and Proximity to Customers. The closer the warehouse is to your core market, the cheaper and faster your deliveries will be. It is critical if you’re selling cross-border.
  
  
• Integration With Your E-Commerce Platform. Your warehouse should integrate seamlessly with Shopify, Amazon, WooCommerce, or any other platform you use. That way, orders flow directly from your store to fulfillment without manual work.
  
  
• Shipping Carriers and Rates Offered. Carrier choice can make or break your costs. A good warehouse partner should offer multiple shipping options and discounted rates to keep you competitive.
  
  
• Transparency and Tracking Capabilities. Visibility is everything. The right warehouse gives you clear insights into order status, tracking, and inventory so you’re never left in the dark.

Final Thoughts

Canadian warehouse shipping isn't just about storing products; it's also about efficiently managing them.

It's about building a fulfillment system that helps you grow without burning out. Whether you’re a small seller, a subscription box company, or expanding into the US, the right warehouse partner can streamline your operations and help you save money.

Power Your Growth with Stallion’s 3PL Warehouse Solutions

If you don't have any warehouse partners in mind, why not check Stallion?

At Stallion, we're more than just a shipping company. We're a full-service 3PL partner. We'll store, pick, pack, and ship your products, allowing you to focus on scaling your brand. Because let's be real—you've got better things to do than chase tape dispensers.

So, what are you waiting for? Contact our customer service and see how easy Canadian warehouse shipping can be.

Jose Sagun

Jose is Stallion's Senior Business Analyst. He helps improve the company’s shipping processes, works closely with delivery partners, and looks at shipping data to find the best prices for our customers. Outside of work, Jose has a passion for running, regularly completing 5k and 10k runs, with the goal of running a full marathon in the near future.

If you're running an online business in Canada, you've likely dealt with (or at least heard of) backorders. They can be frustrating, but they don’t have to be a disaster.

In this guide, we’ll break down what they are, why they happen, and how you can handle them like a pro.

Key Takeaways

• A backorder means a customer bought an item that's temporarily out of stock.
  
  
• A backorder is not the same as "out of stock," where the latter no longer accepts customer orders.
  
  
• There are various reasons why backorder happens. However, the most common ones are inventory mistakes, supplier delays, and unexpected demand.
  
  
• They help save sales, but can hurt customer experience if not managed well.

What Does Backorder Mean?

A backorder is when a customer places an order for a product that's currently unavailable but will be shipped later.

Just think of it this way:

You don't have the product right now, but it will arrive soon. You'll send it to your customers as soon as you can.

It's a way to make that sale, even if your shelves or warehouse are temporarily empty.

How Do Backorders Work?

An item on backorder is when it is temporarily out of stock. However, that doesn't mean customers cannot buy them. Instead of blocking the sale, you commit to shipping the order once it's available again.

For example:

Let’s say you sell skincare products online, and a certain serum sells out fast. Instead of removing it from your store, you keep it listed with a note that it’ll ship in two weeks. Customers can still buy it, knowing there’ll be a delay.

Backorders allow you to keep generating sales even when inventory runs low, so long as you're transparent about timelines.

What is the Difference Between Backorder and Out of Stock?

You may also be wondering about this—and it's a common mix-up.

However, this is what makes them different:

• Backorder. The item isn't in stock right now, but customers can still buy it and get it later.
• Out-of-Stock. The item is unavailable and will not be available for purchase at all until it becomes available.

So if products are backordered, you're still making sales even when the item isn't physically in your hands yet.

What Causes Backorders?

Backorders don’t just happen out of nowhere. Here’s what usually causes them:

Inaccurate Inventory Tracking

Sometimes, the issue lies in your inventory management system. It may say you've got 50 items left, but in actuality, you only have 5. This can lead you into problems faster than you think.

Supplier or Manufacturer Delays

When your suppliers don't deliver on time, your business can't sell either. Unfortunately, it results in a backordered item. This is extremely common, especially for sellers relying on overseas manufacturing.

Unexpected Spikes in Demand

A product goes viral, or you have a killer promotion. Well, that's great for business. But let's say you're not prepared enough. It can drain your inventory and make it hard to meet customer demand.

Poor Demand for Forecasting

As a business owner, failing to plan for seasonal trends or new product launches can be a significant problem. Without enough safety stock can leave you short on inventory when it counts.

Production Issues

Sometimes, things happen outside your control. For instance, factory breakdowns or quality control issues can slow everything down. While this situation is out of your hands, it can still result in a backordered item.

Shipping or Custom Delays

Another thing that is beyond your scope of authority is the shipping. Especially here in Canada, delays at the border or with international shipments can throw your timelines way off, resulting in a backordered product.

Minimal Storage Strategy

If you think trying to save on warehousing by keeping stock levels low can do your business good, then you're absolutely wrong. In fact, you're at higher risk of selling out unexpectedly and having to tell customers the item is on backorder.

How Long Does Backorder Take?

There's no one-size-fits-all answer here. It depends on your supply chain, product type, purchase order process, and where your items are coming from. Backorders can take anywhere from a few days to several weeks.

The key? Be honest with your customers. If you think it'll be 2 weeks, don't say 3 days

Pros and Cons of Backorders

Backorders can work in your favour—but only if you manage them properly.

Advantages of Backorders

Retain Sales Instead of Losing Them

You’re still making money, even if the product isn’t ready to ship yet. The customer may have to wait a little longer to receive it, though.

Better Inventory Efficiency

You don't need to overstock 'just in case.' Understanding your lead time helps you restock more efficiently and save on storage costs.

Demand Insight

Seeing what's getting backordered gives you valuable data on what your customers really want. It includes getting details of where a shortage might be hurting sales.

Disadvantages of Backorders

Customer Dissatisfaction

Let's be honest. Nobody likes waiting longer than expected for something they bought, especially when the delivery date keeps getting pushed back.

Operational Strain

Managing and tracking backorders adds complexity to your operations, including:

• Logistics
• Customer service
• Order management systems

It can affect the entire process, especially when you need to notify customers about delays or updates.

Risk of Cancellations

If customers grow impatient or find the product elsewhere, they might cancel their order. This can lead to lost revenue, sunk operational costs, and potential dead stock.

Examples of Backorders

Here's an example for you:

Let's say you sell a limited-edition hoodie online. You usually sell 50 per month, so you stock 60. Then one day, a TikTok influencer features it, and boom! Suddenly, you get 200 orders in a week.

Now, you're out of stock, but you don't want to shut down the product page. So, what are you going to do?

You accepted backorders while your supplier works on the next batch. However, you will let customers know that the item may take longer to ship, but it will be back in stock soon.

Sound familiar?

BackOrder FAQs

Here are some frequently asked questions about backorders that you might be asking yourself as well:

Are Backorders Bad for Business?

Not necessarily. As mentioned, when done right, selling on backorders keeps sales flowing and helps understand customer demand. However, if communication breaks down or delays persist for too long, it can harm your reputation.

So, no—they’re not bad, but they can be if you don’t stay on top of them.

Should I Allow Backorders in my Store?

Yes, if you can restock right away and set clear expectations. Selling on backorder helps retain sales instead of losing customers due to temporary shortages.

Can Customers Cancel A Backorder?

Yes. Many online businesses also allow order cancellations for backorders, especially if the wait time is longer than expected. One thing to remember when you offer backorders is to provide easy cancellation options. It will help you build customer trust and improve brand reputation.

How Do I Notify Customers About A Backorder?

Mark the item as "on backorder" on the product page. Then, send a confirmation email with the estimated shipping date for the customer's orders. Follow up if the timeline changes.

How Do I Reduce Backorders?

There are many ways to reduce backorders, including:

1. Use real-time inventory tracking.
2. Improve demand forecasting
3. Maintain good supplier relationships.
4. Monitor your lead times to avoid situations where you go out of stock.

How to Manage Backorders?

Here’s how Canadian eCommerce sellers can handle backorders the smart way:

Keep Customers Informed

Tell customers upfront if an item is backordered, especially due to supply chain issues. Send email updates and be transparent if anything changes.

Offer Alternatives

If an item is backordered due to a backlog, suggest a similar item that’s in stock. Perhaps even offer a small discount to encourage the switch.

Set Realistic Expectations

Don’t promise overnight shipping if you know it’ll take two weeks, especially in cases of a partial backorder. Be honest—it builds trust.

Improve Inventory Management

Use inventory tools that track real-time stock levels so you don't accidentally oversell.

Optimize Supply Chain

Work closely with your suppliers. If you can, consider local or backup suppliers to reduce delays. This will help you optimize your supply chain and build a stronger network.

Allow Backordering with Conditions

Set clear timelines and terms for backorders so customers know what to expect.

Prioritize Backorders for Loyal Customers

Reward repeat customers by processing their backorders first. It’s a great way to build loyalty.

Final Thoughts

Backorders aren’t ideal, but they don’t have to be a headache. With solid communication, smart inventory practices, and visibility into your amount of stock, you can turn a potential problem into an opportunity to build trust and keep sales going.

Don’t Let Backorder Fulfillment Slow You Down — Let Stallion Handle the Shipping

Running a Canadian eCommerce business comes with enough challenges, including handling backorders. That's where Stallion, a trusted Canadian 3PL company, steps in.

We help online sellers across Canada simplify their fulfillment, reduce shipping costs, and keep their customers happy. Yes, even when products are on backorder!

• Fast, affordable shipping
• Fulfillment solutions tailored to your needs
• Seamless integrations with major eCommerce platforms
• Support you can count on—even during peak demand

Ready to simplify your shipping and stay ahead—even during backorder season? Get started with Stallion today.

Aman Chopra

Aman looks after the content marketing department at Stallion Express. He is passionate about helping businesses grow by providing informative and up-to-date trends in the eCommerce industry. Outside the office, you can find him on the soccer field cheering on Real Madrid.