Many sellers experience challenges with Wayfair's warehouse entry process, often missing sales opportunities due to stockouts despite strong product performance. CastleGate (CG) Warehousing serves as a critical component in enhancing seller operational efficiency on Wayfair. This guide provides an in-depth analysis of Wayfair CG warehouse operations and detailed logistics procedures to help optimize supply chains and boost sales.
Understanding Wayfair CastleGate Fulfillment
CastleGate Fulfillment represents Wayfair's premier supply chain solution designed to help sellers increase sales and improve customer satisfaction. Since its launch in 2014, CastleGate has specialized in providing exceptional warehousing, inventory management, picking, packaging, and shipping services along with various value-added solutions. Currently, CastleGate supports over 1,500 Wayfair suppliers in addressing operational and financial challenges.
With facilities across North America and Europe, CastleGate enables next-day and two-day delivery services, accelerating sales and enhancing customer loyalty. By streamlining and managing end-to-end supply chains, CastleGate allows sellers to focus on product design and innovation while maximizing sales and minimizing costs.
CastleGate Advantages: Sales Growth and Cost Control
The primary benefit of CastleGate lies in its ability to help sellers maximize sales while controlling costs. The system evaluates both product arrival speed and shipping costs to generate optimized replenishment plans. Once products enter CastleGate warehouses, sellers can access real-time sales forecasts and inventory data, ensuring adequate stock levels while preventing overstock situations.
Efficient Shipping and Replenishment Strategies
Timely shipments and replenishment to CastleGate warehouses remain crucial for maintaining optimal inventory levels. While CastleGate provides recommended replenishment plans, sellers should regularly monitor inventory and sales forecasts to initiate shipments proactively and avoid stockouts, which can significantly impact future sales performance.
To ensure accurate replenishment recommendations, sellers should complete the following configurations:
1. Reviewing Replenishment Plans
- Adjust replenishment quantities through CastleGate Order Entry by selecting desired products and clicking "Add"
- Include products outside recommended lists using the "Part Number Lookup" feature at the bottom of the page
2. Selecting Destination Warehouses
When choosing CastleGate warehouses, consider these three key factors:
- Warehouse Eligibility: Different CastleGate facilities specialize in specific product categories divided into four types. Consult Wayfair documentation for warehouse-product compatibility.
- Dropship Coverage: Select warehouses that complement your existing fulfillment network to enhance fast delivery badges.
- 3PL Replacement: Consider using CastleGate instead of third-party logistics providers for high-velocity products while maintaining safety stock or slower-moving items in 3PL facilities.
3. Creating Shipping Purchase Orders (SPOs)
Given current warehouse capacity constraints, sellers should create Domestic SPOs at least two weeks in advance. After entering replenishment quantities, click "Review" and complete information including source warehouse, destination warehouse, and expected ship date before submitting the order.
Key Notes:
- Each SPO must correspond to a single container or truckload
- Quantities can be adjusted in CastleGate Order Management after SPO creation
- For CastleGate Freight Pickup service, select "CastleGate Freight Pickup" in the freight method section
Detailed Inbound Logistics Procedures
CastleGate accepts replenishment shipments from both international and domestic locations. Sellers should prepare inbound logistics operations early and maintain updated information to facilitate smooth warehouse entry.
Important Note: Suppliers bear responsibility for all CastleGate inbound fees.
1. Domestic Inbound Shipments
For domestic truckload shipments from seller warehouses, two transportation options exist:
- Container/Truck Unloading: Self-managed transportation using preferred carriers
- Freight Pickup Service: CastleGate's point-to-point service offering competitive rates that handles all delivery arrangements
Note: The Freight Pickup Service exclusively handles full truckload shipments exceeding 2,300 cubic feet. For smaller shipments, sellers should continue using container/truck unloading with LTL carriers.
2. International Shipments
For international container shipments from manufacturing facilities, sellers must manage transportation from origin to CastleGate warehouses. Beyond inbound freight costs, suppliers pay international freight inbound fees that support CastleGate's forward positioning service for faster customer deliveries.
Frequently Asked Questions
Q: Wayfair recommends against using FedEx and UPS. Are there preferred logistics providers?
A: Have warehouses contact trucking companies to arrange transportation.
Q: Can promotional activities applied through PRICE UPDATE be canceled via email?
A: No, promotional activities cannot be canceled once applied.
Q: How to ship partial pallets (3-4 pallets not filling a full truck)?
A: Request trucking companies to provide quotes based on pallet quantities.
Q: Should shipping time settings be adjusted if actual performance exceeds expectations?
A: Maintain original settings to avoid compliance issues if performance fluctuates.
Q: Can Wayfair collect loose cargo from ports?
A: Only possible with prior agreement and advanced scheduling, and limited to container collection.