Unlock New Revenue and Savings through Collaboration

WareEx enables sellers to save up to 56% shipping costs and deliver packages up to 4 days faster

A Performance-Based Profit Sharing Model

3 Key Performance Metrics

We rely on three key performance metrics to ensure our members perform the highest quality fulfillment possible that exceeds the most stringent standards of today’s online marketplaces.

• The Late Shipment Rate (LSR) represents orders with a ship confirmation that is completed after the expected ship date as a percentage of orders provided by Cahoot over a 14-day period.
  
  
• LSR only applies to Cahoot orders that you have to ship.
  
  
• Our policy is that members maintain an LSR under 1% to maintain membership of the network. An LSR above 1% may result in membership suspension.

Cahoot monitors all network activity to ensure all orders are picked and packed accurately and shipped on-time. If they are not, we will ‘Make It Right’ and independently expedite the order to your customer by the promised delivery date. Fees and penalties are assessed for performance violations, and repeat offenders are suspended or removed from the network.

LSR
Under 1%

SDR
Under 1%

• The Shipment Defect Rate (SDR) is a key measure of your fulfillment ability to provide a good customer experience. It includes all orders with one or more defects represented as a percentage of total orders during a given 60-day time period. The following are the types of order defects:
  – Wrong item shipped
  – Wrong quantity of items shipped
  – Item damaged in transit (not by carriers)
   
• Our policy is that members maintain an SDR under 1% to maintain membership of the network. An SDR above 1% may result in membership suspension.
  

SCR
Under 0.5%

• The Shipment Cancellation Rate (SCR) is all partner orders you choose not to ship or unable to ship represented as a percentage of orders provided by Cahoot within a 14-day period.
   
• SCR only applies to Cahoot orders that you have to ship.
   
• Our policy is that members maintain an SCR under 0.5% to maintain membership of the network. An SCR above 0.5% may result in membership suspension.

Keep up to 70% of new Savings generated through the WareEx program at zero subscription fees and no long term commitments.

The key to success in fulfilling each other’s orders will be to treat partner merchandise in your warehouse with as much care as if they were your own merchandise (or better). Therefore, we designed our profit-sharing model to be based on your Late Shipment Rate (LSR) and Shipment Defect Rate (SDR).

LSR+SDR

Your share 
of savings

Cahoot’s 
share

0% – 0.50%
0.51% – 1.00%
1.01% – 1.50%
1.51% – 2.00%

70%
50%
35%
20%

30%
50%
65%
80%

Cahoot’s share of profits helps cover our costs plus a small margin which we reinvest back into improving the WareEx program. The fees we charge goes to maintaining a stellar support team, running our offices, continuously improving the platform, and some margins to grow the platform further.

FAQs

Pricing

How are savings computed?

For the WareEx program, we compare the best-rate shipping costs that still meet the on-time delivery date SLAs from you and your partners’ location to the customer. Savings are the difference between the two rates and calculated using your existing negotiated rates.

Do I need to change my carriers or my accounts?

No, all of your orders will be fulfilled using your carrier accounts and your negotiated rates. Cahoot provides the shipping labels generated from your account to the fulfillment partners.

When and how does Cahoot charge its fees?

Members are charged for profit-sharing every 4-weeks based on how much savings they received during that period. Savings for a shipment is only realized after your Cahoot partner sends the shipping confirmation for that order.

Why do you tie Late Shipment Rate (LSR) and Shipment Defect Rate (SDR) into your profit sharing?

WareEx is a network of highly trusted merchants fulfilling each other’s orders from their warehouses. It is a network whose success relies on the stellar performance of its members. That’s why we reward our best-performing merchants with maximum savings. LSR makes sure that your orders get to customers on time, and SDR makes sure that your orders are picked and packed accurately and with care.

Performance

How is Shipment Defect Rate (SDR) calculated?

We calculate SDR based on Sellers reporting product returns and negative feedback on partner fulfilled orders. Cahoot will review the customer-reported-reasons for the return. Then, Cahoot will adjust the SDR after determining the legitimacy of the claim.

What does WareEx membership suspension mean?

If any of your performance metrics fall below the established thresholds, Cahoot may revoke your WareEx membership at any time. You will not be entitled to any shipping cost savings generated in the previous 4-weeks and other WareEx Partners can no longer fulfill orders on your behalf.

Suspended members can appeal to reinstate their WareEx™ membership through a written plan of action that explains (1) the root causes that led to the issue, (2) the actions you have taken to resolve the issue, and (3) the steps you have taken to prevent future issues.

What happens if partner SKUs are not selling well and stays in my warehouse for more than 4-weeks?

Cahoot’s technology aims to minimize long-term storage, however, for merchandise that has been in storage for more than 4-weeks, a nominal fee of $0.50 per cubic feet per month is charged. Cahoot will collect a storage fee to the merchandise owner and pass it to you as compensation. 

Additional Workload

Do I get paid if I ship more Cahoot orders compared to what Cahoot partners ship for me?

Yes, rest assured that you will be compensated for fulfillment activities you do more than your Cahoot partners every four weeks. You should expect to be paid $1.00 per additional order for picking and packing (+$0.50 per additional item). Vice versa, you will be charged the same rates if Cahoot partners did more fulfillment compared to you.

Below is an illustration of the compensation

Storing Inventory

Which SKUs are eligible to be shipped to partner warehouse?

Avoid inventory types that are: hazardous, contains alcohol, requires special storage (e.g., refrigeration, temperature-controlled, dry, etc.) or soon to expire. Currently, Cahoot WareEx does not support products that require assembly, kitting, or bundling.

Cahoot will recommend you SKUs with highest saving opportunities to be sent to partner warehouses. Sellers can influence this decision but Cahoot will prioritize fast-moving SKUs with high savings potential.

How do you handle liability for the goods that are stored in partner warehouses?

Each of our members is required to have insurance and assumes liability for loss or damage that they cause to the partner goods that they store, or for damage caused due to their negligence. The owners of the goods maintain coverage for any damage caused by “acts of God/acts of nature.”

Should I worry about partners becoming my competitors?

No, Cahoot specifically chooses partners that do not compete with your products. Our policy strictly prohibits them from carrying (sell on any platform) any of your WareEx ASINs at any time during their participation in WareEx and for 12 months following their exit.

Partners never get access to your customers’ personal information such as email, phone, or even their last name. Our policy also prohibits partners from making any customer contact at any time.

Boost Your Sales, Join Us Now 

Find out how much you can save by joining WareEx!

Will this create an unsustainable workload and labor requirements in my Warehouse?

It won’t. By distributing your inventory across partner warehouses, you’ll free up workload and labor capacity from your warehouse. In exchange, that extra work capacity is taken up by fulfilling partner orders in your warehouse. Cahoot’s AI orchestrates an equal workload distribution among partners so your workload will never reach unsustainable levels.