5 min read Here are some strategies to scale efficiently, control costs, and maintain accuracy during rapid growth!
When your business experiences a surge, whether seasonal like the holiday rush, promotional like a flash sale, or unplanned viral growth, fulfillment can quickly become the bottleneck. A spike in order volume can strain warehouse labor, inventory accuracy, shipping capacity, and customer satisfaction. Without the right systems in place, increased volume often leads to higher costs, more errors, delayed orders, and frustrated customers.
In this article, we’ll cover:
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The main challenges that come with order volume spikes
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How a modern Warehouse Management System (WMS) powered by AI and automation can solve them
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How SKULabs helps merchants maintain control with 0 label fees when using their own rates
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Real monetary savings and operational benefits
The Pain of High Order Volume Spikes
What happens when orders surge
When order counts jump sharply, say from 1,000 to 5,000 per day, you face:
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Labor bottlenecks from more pick, pack, and ship tasks
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Inventory inaccuracies that cause oversells and backorders
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Increased shipping and carrier costs
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More fulfillment errors and returns
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Declining customer satisfaction and repeat orders
Numerical context
According to the 2024 Extensiv Third-Party Logistics Warehouse Benchmark Report, about 70% of 3PLs reported year-over-year order volume growth, and nearly 70% of providers using a WMS said it directly contributed to that increase. Roughly one-third of respondents experienced more than 25% order growth after implementing advanced warehouse management systems. Studies also show that manual picking still accounts for the majority of warehouse labor, and optimizing pick-path efficiency can reduce travel time by up to 27%. In addition, shipping expenses can represent as much as 90% of total fulfillment costs for high-volume e-commerce operations, underscoring the need for automation and smarter carrier
When volume spikes, these costs multiply unless automation and data-driven systems are in place.
Why a Modern WMS and AI are Essential
What a WMS brings to the table
A Warehouse Management System is the backbone of modern fulfillment. It provides:
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Real-time inventory visibility and accuracy
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Optimized picking by using batching and or wave picking to speed up throughput
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Improved labor utilization and workflow efficiency
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Seamless integration with order channels, shipping carriers, and warehouses so everything is in sync real time
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Scalability to handle both peak and low-volume periods without reconfiguration
How AI and machine learning amplify results
Modern WMS platforms use AI to:
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Forecast spikes using predictive analytics
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Automatically choose the best carrier by price allowing faster shipping
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Adapt to new orders dynamically for faster picking
These capabilities mean your team spends less time reacting and more time fulfilling efficiently and accurately.
How this helps during spikes
When order spikes hit:
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The WMS prevents overselling by updating sales channels in real time.
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Picking and packing are optimized automatically
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The best shipping method and warehouse are selected automatically
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Fewer staff hours are wasted on manual coordination returning those labor hours to other departments in need
In short, a WMS keeps operations stable and costs predictable even under pressure.
How SKULabs Helps You Manage Spikes Smoothly
SKULabs combines WMS, OMS, and fulfillment in a single platform. With SKULabs, you can integrate your own carrier rates and enjoy 0 label generation fees, which can lead to significant savings when volume increases and in most cases pay for the subscription its self.
Key benefits of using SKULabs annually instead of just during order spikes
Zero label fees with your own carrier rates
Standard label fees average $0.10 per shipment, 25,000 shipments during a monthly surge could cost $2,500 in label fees. With SKULabs, you pay nothing for those labels.
At 100,000 shipments, the savings rise to $10,000.
Integrated fulfillment management
SKULabs connects your order, inventory, and shipping data to simplify scaling up.
Automated workflows
Batch processing, smart picking, and optimized packing logic keep efficiency high without manual effort.
Data and analytics
Gain visibility into order volume, cost per order, and shipping performance.
Controlled costs
Automation helps you keep cost per order consistent, even when order counts triple.
Example cost savings
If your business ships about 20,000 orders a month and your average fulfillment cost is $8 per order, that’s about $160,000 a month in operating costs.
Now imagine your sales surge and you need to ship 40,000 orders. Without automation, the extra workload often means more labor, overtime, and mistakes, pushing your cost per order up to $12, or $480,000 total.
With SKULabs automation, those same 40,000 orders could cost closer to $9 each, keeping your total around $360,000. That’s a $120,000 savings in one month. On top of that, using your own carrier rates with zero label fees can save you another $4,000 in shipping costs.
And even small improvements add up, a 1% reduction in fulfillment errors on 40,000 orders prevents about 400 mistakes, saving $6,600 or more in returns, reshipping, and customer service expenses.
Best Practices for Handling Order Spikes
Before the spike
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Benchmark your normal fulfillment metrics.
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Stress test your systems with simulated volume surges.
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Organize inventory with efficient slotting.
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Ensure your carrier setup qualifies for zero label fees.
During the spike
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Use WMS tags for prioritization for your urgent or high-value orders.
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Batch or zone-pick to increase throughput.
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Automate labeling and carrier selection.
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Monitor real-time performance metrics.
After the spike
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Review metrics like cost per order, error rate, and label savings.
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Identify bottlenecks and adjust workflows & processes.
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Document improvements to apply in the next surge.
Key Takeaways
When order volume spikes, the right systems determine whether you grow profitably or struggle under pressure. A WMS powered by AI and automation allows you to manage surges without breaking fulfillment.
With SKULabs, you gain integrated order and warehouse management, automation that scales with your growth, and zero label fees when using your own carrier rates. Together, these advantages translate into smoother operations, lower costs, and happier customers.
Ready to prepare for your next big sales surge?
Learn how SKULabs can help you scale confidently and save thousands during peak order periods by scheduling a time on our calendar.
