Category: 3PL Provider

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Medallion Fulfillment vs. Amazon FBA: Which is Best?

Fulfillment Partner Putting Orders Together

As a business owner, choosing the right fulfillment partner is one of the most critical decisions you’ll make. The way your products are stored, packed, and shipped directly impacts customer satisfaction and your bottom line. Two popular options are partnering with a third-party logistics (3PL) provider like Medallion Fulfillment or using Amazon FBA. While both get your product to the customer, they offer very different experiences.

Let’s break down the key differences to help you decide which path is the right one for your business’s growth.

The Power of Amazon FBA

Fulfilled by Amazon (FBA) is a powerhouse for a reason. By storing your inventory in Amazon’s warehouses, you gain access to its world-class logistics network.

The biggest advantages include:

  • Prime Badge: Products sold through FBA are eligible for the Amazon Prime badge, offering customers fast, free shipping. This is a massive conversion driver on the Amazon marketplace.
  • Hands-Off Logistics: Amazon handles everything from picking and packing to shipping and customer service inquiries, including returns. This frees up your time to focus on sales and marketing.

However, these benefits come with significant trade-offs that can hinder a growing brand.

The Limits of Amazon’s Approach

Amazon FBA operates on a massive scale, which creates rigidity and a lack of personalization that can be challenging for small to medium-sized businesses.

The main drawbacks are:

  • Complex and High Fees: FBA’s fee structure is notoriously complicated. You’ll face fulfillment fees, monthly storage fees, long-term storage penalties for slow-moving inventory, and various other charges. These costs can be unpredictable and quickly reduce your profit margins.
  • No Branding Control: Every order ships in an Amazon-branded box. You lose a crucial marketing opportunity to create a memorable unboxing experience that reinforces your brand identity and encourages customer loyalty.
  • Strict Requirements: FBA has inflexible rules for labeling, packaging, and receiving inventory. Failing to meet these standards can result in penalties or refusal of your shipment, causing costly delays.

The Medallion Advantage: A Partnership for Growth

Working with a dedicated fulfillment partner like Medallion Fulfillment offers a fundamentally different, more personalized approach. We act as an extension of your team, providing the flexibility and control you need to build your brand.

Cost Control and Predictable Pricing

Unlike the complex fee structure of FBA, we provide clear, straightforward pricing. You get a transparent view of your fulfillment costs without worrying about hidden charges or long-term storage penalties. This predictability allows for better financial planning and protects your margins, helping you scale your business sustainably.

Enhance Your Brand with Custom Packaging

We believe the customer experience shouldn’t end at checkout. Medallion empowers you to own the post-purchase journey.

  • Custom Branded Boxes: Ship your products in packaging that reflects your brand’s unique identity.
  • Promotional Inserts: Include thank-you notes, special offers, or other marketing materials to delight customers and drive repeat business.
  • Personalized Service: Create a memorable unboxing experience that transforms a simple delivery into a powerful brand touchpoint.

Flexible Solutions and Dedicated Support

Your business is unique, and your fulfillment solution should be too. We don’t believe in a one-size-fits-all model. Our team works with you to understand your specific needs and tailor our services accordingly. When you have a question or need to make a change, you can speak directly with a dedicated support contact who knows your business—a level of personalized service you simply won’t find with FBA.

Making the Right Choice for Your Business

Amazon FBA is an effective solution if you sell exclusively on the Amazon marketplace and want a hands-off approach.

However, if you are building a brand, selling across multiple channels, and value cost control and the customer experience, a fulfillment partner is the superior choice. Medallion Fulfillment provides the tailored solutions and expert support needed to help your business thrive.

Ready to take control of your fulfillment and build a stronger brand? Contact us at Medallion Fulfillment & Logistics to learn more about our customized, cost-effective solutions.

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Tips for Fulfilling a One Time Shipment like Kickstarter

Kickstarter Success! DIY shipping or Hire a Fulfillment Company?

Fulfillment: DIY vs. 3PL

Congratulations, your Kickstarter campaign was a success! While the funds are rolling in and the social media congratulations are buzzing, you’re facing the next big challenge: fulfilling your promises. For many creators, the most difficult part of a crowdfunding campaign isn’t raising the money; it’s delivering the product to your backers.

Manufacturing, shipping, and handling thousands of orders can be overwhelming. This guide will help you understand the two main approaches to Kickstarter fulfillment—doing it yourself or partnering with a third party logistics provider—so you can make the best choice for your project.

Understanding Kickstarter Fulfillment

Before you can ship a single product, you need a solid plan. Successful fulfillment starts long before your campaign ends. It requires careful planning and budgeting to ensure you can meet your backers’ expectations without eating into your profits.

One of the biggest mistakes first-time creators make is underestimating costs. Your budget needs to account for more than just manufacturing. Remember to factor in platform fees (which can be 8-10% of your total funding), payment processing, packaging materials, and shipping. It’s crucial to build a financial buffer to cover unexpected expenses like shipping damages or production delays.

The DIY Fulfillment Approach

Managing fulfillment in-house means you handle every aspect of the process, from storing inventory and packing boxes to printing labels and shipping orders. This hands-on approach is often the default for smaller campaigns.

Advantages of DIY Fulfillment

  • Total Control: You oversee every detail, ensuring the packaging and presentation align perfectly with your brand. You can add personal touches like handwritten notes to create a memorable unboxing experience.
  • Direct Backer Relationship: Handling fulfillment yourself keeps you directly connected to your supporters. This can be a valuable learning experience, offering insights into your customer base.
  • Lower Upfront Costs: You avoid the fees associated with a fulfillment partner, which can be appealing if your budget is tight.

Challenges of DIY Fulfillment

  • Massive Time Investment: Packing and shipping hundreds or thousands of orders is a monumental task. This can easily become a full-time job, pulling you away from other critical business activities.
  • Space Requirements: You’ll need a dedicated space to store your inventory and set up a packing station. For many, this means turning a garage or living room into a temporary warehouse.
  • Potential for Errors: Without established systems, the risk of making mistakes—like sending the wrong item or using incorrect postage—is high. International shipping adds another layer of complexity with customs forms and regulations.

The 3PL Fulfillment Approach

A third-party logistics provider (3PL), or fulfillment company, handles your storage, packing, and shipping for you. You send your manufactured products to their fulfillment center, and they take care of the rest.

What is a 3PL?

A 3PL provider acts as your outsourced operations department. Their services typically include warehousing, inventory management, order processing, and shipping. At Medallion Fulfillment, we have extensive experience managing special orders and kitting, ensuring that even complex rewards with multiple items are assembled and shipped correctly.

Advantages of 3PL Fulfillment

  • Focus on Your Core Business: Outsourcing logistics frees you up to concentrate on what you do best—developing new products, marketing your brand, and growing your business.
  • Scalability: A fulfillment company is equipped to handle large order volumes. If your campaign is more successful than anticipated, a 3PL can easily scale to meet the demand.
  • Shipping Expertise and Better Rates: 3PLs ship in high volumes, which allows them to negotiate better shipping rates with carriers than a small business could get on its own. They are also experts in navigating the complexities of international shipping and customs.

Challenges of 3PL Fulfillment

  • Cost: Partnering with a 3PL involves service fees. While you save on shipping, you need to budget for costs related to storage, order processing, and packing.
  • Less Direct Control: While you still control your brand, you give up direct oversight of the packing and shipping process. This is why choosing a trusted partner is so important.

Choosing the Right Fulfillment Model

So, should you go the DIY route or hire a 3PL? The right answer depends on several factors:

  • Scale and Volume: For projects with a small number of backers (e.g., under 200) and simple rewards, DIY can be manageable. For larger campaigns, especially those with significant international orders, a 3PL is often the better choice.
  • Budget: While DIY seems cheaper upfront, the hidden costs of time, materials, and potential errors can add up. A 3PL has clear costs, but you must ensure they fit within your budget.
  • Your Expertise and Time: Be honest about how much time you can dedicate to fulfillment. If you’re already juggling other responsibilities, outsourcing to a third party logistics expert can be a lifesaver.

When evaluating 3PL providers, look for a partner with experience in crowdfunding campaigns and the flexibility to handle unique requirements like kitting and assembly.

Key Steps in the Fulfillment Process

No matter which model you choose, the core steps remain the same:

  1. Manufacturing Oversight: Keep in close contact with your manufacturer to ensure production stays on schedule and meets your quality standards.
  2. Transportation: Arrange for your finished goods to be shipped from the factory to your home or your 3PL’s fulfillment center.
  3. Pledge Management: Use a tool like BackerKit to collect final shipping addresses from your backers. It’s best to do this just before you’re ready to ship to avoid issues with outdated addresses.
  4. Communication: Keep your backers informed every step of the way. Regular, transparent updates build trust and patience, especially if there are delays.

Finding Your Fulfillment Balance

Successfully fulfilling your Kickstarter campaign is a balancing act between cost, control, and customer satisfaction. The DIY approach offers maximum control but demands significant time and effort. A 3PL provider offers expertise and scalability, allowing you to focus on your business while ensuring your backers receive their rewards efficiently.

By carefully planning your fulfillment strategy from the beginning, you can turn the challenge of delivery into an opportunity to build lasting relationships with the supporters who brought your project to life.

Ready to take the stress out of shipping? Let the experts at Medallion Fulfillment & Logistics handle the details.

Get a Free Fulfillment Quote

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How 3PLs Empower DTC Brands to Scale Faster Pt 2

Third Party Logistics Provider for DTC (Direct to Consumer Ecommerce)

Direct-to-consumer (DTC) brands are rewriting the rules of retail—building loyal communities, controlling their messaging, and delivering curated experiences. But as orders grow and customer expectations rise, fulfillment becomes a bottleneck. That’s where third-party logistics (3PL) providers step in—not just as operational support, but as strategic accelerators. If you didn’t catch part one of this article you can find it here.

Four Key Benefits of 3PL Partnerships

Cost Reduction Through Operational Efficiency

3PL providers achieve economies of scale that individual brands cannot match. By consolidating shipments and leveraging established carrier relationships, they secure better shipping rates. Medallion Fulfillment’s bulk shipping agreements result in significant savings that we pass directly to our clients.

Storage optimization reduces warehousing costs through efficient space utilization and shared infrastructure. Instead of paying for dedicated warehouse space year-round, brands only pay for the storage they actually use.

Enhanced Focus on Core Business Activities

When logistics operations move to experienced 3PL providers, internal teams can redirect energy toward revenue-generating activities. Marketing campaigns, product development, customer service, and strategic partnerships all benefit from increased attention and resources.

This refocusing often accelerates growth beyond what improved fulfillment efficiency alone could achieve. Brands that outsource ecommerce fulfillment typically see faster product launch cycles and more aggressive market expansion.

Improved Customer Experience and Satisfaction

Professional 3PL operations deliver consistently superior customer experiences. Order accuracy rates typically exceed 99.8%, while shipping times often improve by 2-3 days compared to in-house operations.

Advanced tracking systems keep customers informed throughout the fulfillment process, reducing support inquiries and increasing satisfaction. When issues do arise, experienced 3PL teams resolve them quickly without involving brand resources.

Scalability Without Operational Complexity

3PL partnerships eliminate the need to forecast warehouse capacity, hire seasonal staff, or invest in additional fulfillment infrastructure. During peak seasons or promotional periods, your 3PL automatically scales operations to meet demand.

This flexibility proves especially valuable for DTC brands with seasonal products or those experiencing rapid, unpredictable growth. You can focus on driving sales without worrying about fulfillment capacity constraints.

Success Stories: DTC Brands That Scaled With 3PLs

Several household-name DTC brands have leveraged 3PL partnerships to achieve remarkable growth:

Warby Parker revolutionized eyewear retail through their direct-to-consumer model, but their success required efficient distribution to compete with traditional optical chains. Strategic 3PL partnerships enabled rapid geographic expansion while maintaining their distinctive customer experience.

Glossier built a devoted following around minimalist beauty products and community-driven marketing. As order volumes exploded, partnering with experienced 3PLs allowed them to maintain fast shipping and branded packaging without diverting resources from product development and customer engagement.

Allbirds gained popularity through sustainable footwear and transparent business practices. Their complex supply chain and global shipping requirements made 3PL partnerships essential for maintaining their ethical standards while scaling internationally.

Casper transformed the mattress industry with their bed-in-a-box concept, but shipping large, bulky products required specialized logistics expertise. 3PL partnerships enabled reliable delivery of their innovative packaging while supporting rapid market expansion.

Choosing the Right 3PL Partner

Success depends on selecting a 3PL provider that understands DTC brand needs and can grow alongside your business. Look for partners offering seamless technology integration, transparent pricing, and experience serving similar brands.

At Medallion Fulfillment, we specialize in supporting DTC brands through every growth stage. Our scalable services, strategic warehouse locations, and flat-rate fulfillment programs for startups provide the flexibility growing brands need. Whether you’re shipping 100 orders per month or 10,000 per day, our systems and expertise adapt to your requirements.

Transform Your Fulfillment Into a Competitive Advantage

The most successful DTC brands treat fulfillment as a strategic capability, not just an operational necessity. 3PL partnerships enable this transformation by providing professional operations, advanced technology, and scalable infrastructure—freeing you to focus on what you do best.

Don’t let fulfillment bottlenecks limit your growth potential. Contact Medallion Fulfillment today to start your third party logistics for ecommerce partnership and discover how professional fulfillment services can accelerate your DTC brand’s success.

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How 3PLs Empower DTC Brands to Scale Faster Pt 1

Third Party Logistics for Ecommerce Brands

Direct-to-consumer brands have revolutionized retail by cutting out middlemen and building direct relationships with customers. However, as these brands scale, fulfillment operations often become their biggest bottleneck. Managing warehouses, processing orders, and shipping products can quickly overwhelm growing businesses. That’s where third party logistics for ecommerce becomes essential—transforming fulfillment from a headache into a competitive advantage.

The Fulfillment Bottleneck That Stops DTC Growth

When DTC brands experience rapid growth, their initial fulfillment setup rarely keeps pace. What works for 50 orders per week quickly crumbles under 500 orders per day. Common challenges include:

Limited warehouse space forces brands to rent additional storage or turn away inventory. Growing product lines need more room, but securing additional space requires long-term commitments and upfront costs.

Rising operational costs eat into profit margins. Hiring warehouse staff, investing in packaging equipment, and managing inventory systems drain resources that could fuel marketing and product development.

Inventory management nightmares lead to stockouts and overstock situations. Without sophisticated tracking systems, brands struggle to maintain optimal inventory levels across multiple SKUs.

Time drain on core activities pulls leadership away from strategy and growth. When founders spend hours packing boxes instead of building partnerships or developing products, growth stagnates.

These pain points compound as order volume increases, creating a ceiling that prevents sustainable scaling.

How 3PLs Transform Fulfillment Into Growth Engines

A strategic 3PL partnership addresses these bottlenecks while creating new growth opportunities. Modern third party logistics for ecommerce providers offer far more than basic warehousing—they deliver comprehensive solutions that scale with your business.

Nationwide warehouse networks eliminate geographic limitations. When you outsource ecommerce fulfillment to providers like Medallion Fulfillment, you gain access to strategically located facilities. Our Los Angeles and Boston locations enable coast-to-coast coverage, reducing shipping times and costs for customers nationwide.

Advanced technology integration connects your ecommerce platform directly to fulfillment operations. Real-time inventory tracking, automated order routing, and predictive analytics eliminate manual processes while providing valuable business intelligence.

Branded fulfillment experiences maintain your customer relationships even when orders ship from third-party facilities. Custom packaging, personalized inserts, and kitting services ensure your brand identity reaches customers intact.

Transform Your Fulfillment Into a Competitive Advantage

The most successful DTC brands treat fulfillment as a strategic capability, not just an operational necessity. 3PL partnerships enable this transformation by providing professional operations, advanced technology, and scalable infrastructure—freeing you to focus on what you do best.

Don’t let fulfillment bottlenecks limit your growth potential. Contact Medallion Fulfillment today to start your third party logistics for ecommerce partnership and discover how professional fulfillment services can accelerate your DTC brand’s success.

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Ecommerce Challenges: Why Small Ecommerce Businesses Need 3PL Services

Ecommerce 3PL Provider

Running a small ecommerce business means wearing many hats, but logistics doesn’t have to be one of them. At Medallion Fulfillment, we’ve seen firsthand how third-party logistics (3PL) services transform ecommerce challenges into thriving operations.

The Reality of Small Ecommerce Challenges

Small ecommerce businesses face unique obstacles that can make or break their success. Here’s what we see most often:

Inventory Management Nightmares

Predicting demand is tough when you’re juggling customer service, marketing, and operations. Too much inventory ties up cash flow, while stockouts mean lost sales and disappointed customers. We’ve helped businesses reduce inventory costs by 25% through better forecasting and management.

Shipping Headaches

Managing multiple carriers, negotiating rates, and handling returns becomes overwhelming fast. Small businesses often pay higher shipping rates than necessary, eating into already thin margins.

Scalability Struggles

Peak seasons and promotional campaigns can overwhelm your current setup. Without proper infrastructure, you’re forced to turn down opportunities or risk disappointing customers with delayed shipments.

How 3PL Services Solve These Problems

Advanced Inventory Management

Our warehouse management system provides real-time visibility into stock levels. You’ll know exactly what’s moving, what’s sitting, and when to reorder. This eliminates guesswork and reduces carrying costs.

Streamlined Shipping Operations

We handle everything from picking and packing to carrier selection and returns processing. Our established relationships with major carriers mean better rates and faster delivery times for your customers.

Instant Scalability

Need to handle 1,000 orders during Black Friday? No problem. Our infrastructure scales with your business, so you can focus on marketing and sales instead of logistics bottlenecks.

Cost Savings That Matter

By leveraging our volume discounts and efficient processes, most clients see 20-30% reductions in fulfillment costs. Plus, you eliminate the need for warehouse space, staff, and inventory management software.

Your Next Move

Stop letting logistics limit your growth potential. Partner with a reliable 3PL provider who understands small business challenges and has the expertise to solve them.

Ready to streamline your operations and reduce costs? Contact us for a personalized quote and discover how Medallion Fulfillment can transform your ecommerce business.