UPS Launches Ware2Go – A Crowdsourced Amazon FBA Style Service

Source: UPS

UPS announced Tuesday the launch of Ware2Go, a new technology company and digital platform that matches available warehouse space and fulfillment services with merchants.

The goal of Ware2Go is to provide a fulfillment platform to customers who want to get online orders to buyers quickly by utilizing a network of fulfillment warehouses certified by UPS.

The new business augments the company’s suite of custom eCommerce solutions designed to support small and medium-sized companies.

“Ware2Go uses innovative online technology to match excess warehouse and fulfillment capacity with merchant demand to provide transparent inventory, order fulfillment and final delivery. We’re solving for two major problems: speed to market and efficient warehousing.”

Scott Price, Chief Transformation and Strategy Officer

Ware2Go recruits and certifies warehouses in strategic locations, establishing a network of vetted fulfillment partners.

Merchants can then position products closer to their customers without the need for researching or vetting providers, or making long-term volume and time commitments.

Ware2Go’s cloud-based platform and solution provides merchants with seamless end-to-end order fulfillment – storage, pick/pack fulfillment and shipping – with guaranteed two-day delivery by UPS.

Because Ware2Go manages the relationships with warehouses, merchants get the service levels and pricing they might not receive on their own.

Merchants who use Ware2Go sell online, primarily to other businesses, and want fast, consistent, time-in-transit for shipments. They have few distribution centers and could benefit from more warehouse space for rent in other areas of the U.S.

UPS says that according to industry reports, the demand for warehouse space has outpaced new supply since the end of the recession. Rising rental rates, coupled with eCommerce growth, have shifted warehousing from large centralized sites to localized facilities across major markets.

How It Works

When a warehouse registers with Ware2Go, the platform matches unused capacity and capabilities with merchants.

Ware2Go identifies merchants looking for fulfillment services and then on-boards, manages and bills customers so warehouse operators can fill available capacity quickly and easily without sales teams or administrative oversight.

Warehouses can expand their customer network with a simplified management platform that provides visibility and invoicing.

Warehouse operators who use Ware2Go already provide small-package pick and pack but may not have a dedicated sales team. They could benefit from working with customers outside their local area.

  • Customers create an account (as a merchant, warehouse or both) and answer a few questions about their needs or capabilities.
  • Merchants provide details about their products, orders, space requirements and specific regional delivery needs. A portal enables merchants to upload and manage their inventory and orders across the Ware2Go network. The merchant maintains ownership of the inventory and is responsible for getting the products to Ware2Go-certified warehouses.
  • Warehouses provide their address and fulfillment services available, and Ware2Go inspects and certifies the warehouse.
  • The platform matches warehouses with merchants.
  • The Ware2Go platform also provides inventory visibility and tracks order progress for both the merchant and warehouse, streamlining communications.

“The flexibility Ware2Go offers merchants and warehouse operators, especially companies in the industrial, automotive and tech sectors, means they can compete more effectively and profitably in the market. Ware2Go leverages the scope and scale of UPS’s network to provide an integrated delivery solution to improve management of the order-to-delivery experience.”

Scott Price, Chief Transformation and Strategy Officer

Alternative to Amazon FBA

As more small business merchants use Amazon FBA services to fulfill their orders, logistics companies such as UPS have to look outside of their traditional delivery role and offer fulfillment and inventory management services.

The most important benefit for sellers to consider Ware2Go is that UPS is not a retailer and has no direct interest in data mining sales information about specific product SKUs.

Sellers who use Amazon FBA have long complained about the company being able to track orders and SKUs and potentially become a competitor to the third-party merchant.

By utilizing a logistics company to handle fulfillment, sellers maintain the privacy of their sales data.

The crowdsourcing aspect of the Ware2Go service allows UPS to rapidly scale a fulfillment network of warehouses that can offer 2-Day delivery to most of the U.S.

UPS Ware2Go is another new initiative by UPS to maintain its lead in parcel delivery by expanding past pure delivery and offering advanced eCommerce solutions for online merchants.

READ MORE: UPS Pilots In-Building Apartment Deliveries in New York City Area

What do you think of UPS Ware2Go service? Can it compete with Amazon FBA? Head over to our Facebook Discussion Group or use the comments section below.

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