Category: East Coast Fulfillment Warehouse

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When Does it Make Sense for a Business to Use a Fulfillment House? When Should You Upgrade Services?

Fulfillment Warehouse Owner

Most ecommerce companies are surprised by how little third-party fulfillment costs, particularly when compared to how much they already spend to warehouse, package, and ship their own products.

Outsourcing order fulfillment is cost effective and allows you to switch variable costs to fixed costs. Gene Kent, President of Medallion Fulfillment & Logistics said, “Many times companies are surprised at the overall cost savings our services have supplied when they review their bottom-line after the first six months. As we have heavily invested in technology, both in order processing and bar coding in our warehouse, we are able to process orders faster and cheaper than you can typically do yourself.”

When you compare the total cost of order fulfillment, i.e. maintaining a warehouse, lease payments, staff, benefits, unemployment taxes, insurance etc., to an order fulfillment provider’s fixed cost model, you quickly realize that making the switch saves money. Your business can save from 20 to 50 percent on current order fulfillment expenses.

Many businesses, who are using a fulfillment house already, forget that as they grow their business needs grow, and they should review their fulfillment agreement periodically in order to add additional work and time saving services. Existing office staff may need to outsource an additional portion of the paperwork that is part of the supply chain process or move to automation for ordering in order to be efficient and handle the increase in sales volume.

Our office staff can help your business office operate more efficiently by taking on the tasks that are closely aligned with the order and shipping functions of your business.

Minimizing Errors Saves Money

A high quality order fulfillment company satisfies customers which lead to repeat business. “Our warehouse bar coding system eliminates problems. When customer merchandise is received in our warehouse it is immediately bar coded and entered into inventory. Handheld scanners are used by our packers and your inventory is tracked all the way to order shipping. We are using one of the most technologically advanced order and inventory management systems allowing business owners to review stock and order statuses of items on our system 24/7 from anywhere in the world just by using the Internet.” said Gene Kent.

Looking to Expand Your Reach?

Looking to expand beyond your current sales base? Fulfillment houses are ideal for companies seeking to sell products overseas because they have the expertise to ensure your products arrive on time and safely. If you’re seeking to expand your company’s customer base by providing customers more alternatives for ordering products and paying, don’t increase your overhead, outsource the fulfillment process.

Wholesale Orders or Business to Business Orders

Our warehouse.As your company expands, a fulfillment company can handle your wholesale or B2B orders. Wholesale orders from large retail chains, catalogs and other mass merchants have different demands than business-to-consumer orders. The penalty for noncompliance with an order from a chain of retail stores for even something trivial, can be costly.

Fulfillment houses routinely work with wholesale orders and can develop order processing checklists for your account to assure that your orders are completed based on the requirements of the wholesaler; saving you costly charge backs.

Huge, Sudden Increase in Orders

If you’re considering adding new distribution channels or initiating major new promotions, be prepared for potentially thousands of new orders overnight. A huge increase in orders may overwhelm your back-end system; delaying shipments which leads to unhappy customers. An experienced fulfillment company knows how to properly take care of a large increase in orders. A fulfillment house allows you to ramp up very quickly without increasing your overhead.

If your company has a difficult time maintaining a balance between inventory supply and demand, a knowledgeable order fulfillment company can make a huge difference.

Foreign Companies Selling in the U.S.

Businesses based outside of the United States, partnering with a fulfillment service save time and money because they don’t need a warehouse, office and a staff in the United States; they can focus on obtaining new customers.

The Real Advantages of Partnering with a Fulfillment Service:

  • They know how to handle opportunities and problems which may occur as your business expands.
  • Only pay for fulfillment services when you generate sales.
  • Reduce fixed cost overhead.
  • No need to obtain a larger facility to store products when the business expands.
  • Bulk shipping rates available to fulfillment companies; high shipping cost can break deals with clients.
  • They buy shipping materials in bulk at better rates.
  • An active fulfillment company stays current with the latest software and order processing technology.
  • If your business experiences low volume and high volume days, fulfillment firms eliminate the employee cost associated with the fluctuation.
  • You refine and improve your backdoor operations.

Many nationally known companies reap the benefits of partnering with a third party fulfillment center. Small, medium and large businesses can do the same. With 29 years as a fulfillment service provider, Medallion Fulfillment & Logistics understands your culture, brand, and products from a depth of real world experience.

Isn’t it time to find out how you can save time and money on order processing while you work on expanding your market and sales?

About the Writer Jan Stewart

Jan Stewart is a professional writer for Medallion Fulfillment & Logistics, a family owned Los Angeles based fulfillment firm. She writes exclusively for the Medallion Fulfillment & Logistics newsletter on topics of business tips, how to promote your business online, and establishing your brand in the marketplace.

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Looking Ahead: Disasters, Disruptions, and Demand – the Supply Chain Learns from Coronavirus

There are a number of ways in which coronavirus is affecting the supply chain and freight system, both long and short term. As the crisis shines a spotlight on problems with current supply chain practices, it is also shining a light on improvements that can be made.

Below are four areas to explore to minimize supply chain exposure and prevent disruption. We encourage all operations professionals to take charge of the factors they can influence and share their successes and trials with the community so that we will all be stronger after this situation passes.

1. Communication

Customers can become antsy in times of crisis, but we also see great examples of humanity during these times. Lack of information is one of the biggest obstacles to a peaceful response.

Open communication should be encouraged at all times, but none so important as times like these. Simply informing customers, clients, partners, and suppliers of delays with accuracy and honesty is essential.

Take the toilet paper crisis, for example. When consumers see only empty shelves and have no idea when supplies will be restocked, there is more panic-buying and hoarding.

However, when the store tells customers when the shelves will be restocked, there are reports of calmer buying practices and sharing. If people know that there will be more on the shelves in a few days, or can find back-in-stock dates online, they can relax a bit.

There is security in knowing, and this cannot be overemphasized as a strategy to avoid supply chain collapse.

2. Artificial Intelligence

In a recent Forbes article, Dave Evans recommends three areas for improvement to “future proof” supply chains. Two of the three areas are technology based, indicating that implementing more automation and artificial intelligence (AI) in fulfillment and logistics will have a tremendous positive impact.

Using automated data analysis helps predict demand on the fly and respond immediately and effectively. A solid dynamic AI for ERP provides actionable data insights, which enables companies to be more efficient and resilient.

When demand begins to increase slowly, the AI notices immediately and continues to re-forecast, ordering inventory earlier and more efficiently than a human purchasing agent. These AIs can continue to run regardless of human health and impact.

Evans suggests that businesses build a self-driving supply chain using blockchain, AI, machine learning and other related technologies to keep things moving on time and without delay or major disruption.

Phasing out human-dependent operations like manual spreadsheets and phone calls is another area where efficiency can be increased with the use of technology.

Automation in the fulfillment center can also help 3PLs meet increased demand with the same amount of staff, increasing flexibility. Not only is this strategy supportive of daily business and spikes in demand, but it also protects against disruptions due to labor shortage, such as a pandemic.

When staff is depleted due to natural disaster or disease, elements of the supply chain may find themselves shorthanded and in the face of increased demand at the same time. Automation relieves this strain and is not affected by the human condition.

3. Diversify Sourcing

Richard Wilding, a professor at the Cranfield School of Management, urges businesses to assess and mitigate supply chain weaknesses immediately. “Companies need to urgently review their supply chain to find out how exposed they are. They need to ask the question as to where their suppliers and suppliers’ suppliers are located and review other sourcing locations, which, although often more expensive, can protect from disruptive events such as this,” he said.

The Harvard Business Review suggests that a new kind of design is needed that enables companies to rapidly reconfigure their supply chains and be ultra-agile and responsive to rapidly changing global trade policies, supply dynamics, and disruptions.

Using local suppliers and manufacturers helps minimize disruption. When transportation breaks down, particularly overseas shipments or long-haul freight, businesses that require parts or supplies from outside the region are easily affected.

Without materials, the business may need to close temporarily, which naturally affects workers and, in turn, impacts the economic health of the community.

Sourcing locally can make a big difference and allow a business to continue producing and selling its products within the community. Of course local sourcing doesn’t fix everything.

Some products or supplies simply will not be available locally and if the transportation chain is disrupted, businesses may not be able to get their products to customers. If the local area is directly affected, this strategy will have limited success during the disruption itself, but can bounce back more quickly after the threat has passed.

In general, modern supply chain strategy should include regional diversity. Counting on a single location is too risky in the current marketplace. Experts recommend evaluating a variety of sources and considering availability, location and speed in addition to price.

It might cost a little more to source locally, for example, but there are often selling advantages to this approach.

4. Plan Ahead

Using just-in-time inventory practices is one of the best ways to minimize carrying costs in any inventory-based business. But running lean can leave you out of stock quickly in the face of increased demand.

Forecasting is already a challenge and is made more complex by an emergency situation. Some emergencies are a little predictable though, like hurricane season. Companies in the Southeastern US are accustomed to preparing for short periods of down time and shortages every year between June and November and can be ready with higher inventory levels during these times.

The first reports of COVID-19 emerged in late December 2019. While that may have been too early to react, it’s easy to see now that there have been opportunities along the way to beef up stock levels before it became a national emergency. And this is still the case.

As we all monitor this situation, there may still be opportunities to predict near-future fallout and prepare. It will take some time for businesses to recover, so consider what the next failing may be.

After toilet paper, it was paper towels and other paper goods. What might be next? In the longer term, demand may increase for sanitizing appliances or it may decrease for real estate purchases. Identifying changes early is your best weapon.

Conclusion

While we are already knee-deep in supply chain changes due to the coronavirus outbreak, it’s not too late to adjust. Even small changes can make an impact to lessen the overall negative impact on your business and your partners.

This experience can be taken as an education to inform more robust future disaster plans for supply chain management. We hope you will share your thoughts and contribute to a conversation that can benefit everyone as we move forward through this difficult time.

We invite you to find out more about Medallion Fulfillment & Logistics by visiting our website to see why we are the fulfillment leader for both the East and West Coasts.

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Online Selling Tips for Promoting Your Products on Google Shopping

Learn About the Amazon Effect

With platforms dedicated to product feed and promotions, Google Shopping aims to simplify business for online merchants. The program is also tightly integrated with Shopify, a hugely popular e-commerce platform.

But don’t expect to set up Google Shopping and sit back while orders flow into your fulfillment warehouse. You’re at the mercy of Google Shopping’s control unless you take some proactive steps to optimize results.

Here are six expert tips for ways to get the most bang out of your Google Shopping buck and truly keep your fulfillment warehouse busy filling orders.

Optimize Your Website

• Are your product titles consistent with manufacturer listings?

• Does your own brand use titles with high search volume keywords?

• Is your page content unique, or do you simply copy-and-paste from other websites?

Add Negative Keywords

The word “negative” automatically sounds counterproductive, but this is an essential factor in your promotional strategy. When you enter negative keywords into Google Ads Shopping Campaigns, they keep your ad from showing for untargeted traffic you do not want.

Clicks without conversions do nothing but cost you money. Proper use of negative keywords helps assure that your ads will get in front of people who have a genuine interest in your product or service.

Segment Your Google Shopping Campaigns

Your products don’t all sell at the same rate, so why should they all get equal amounts of your promotional budget? If everything goes in the same bucket, it’s difficult to tell which items are the most profitable.

When you segment campaigns, you get more specific data that lets you compare the individual performance of different items. Suggested categories include:

• Price

• Brand

• Best sellers

• Seasonality

Bid Strategically for Activity

Cost per click, or CPC, is another factor that should not be cookie-cutter. A good rule of thumb is to divide the price of a product by its profit margin, then multiply that number by the standard conversion rate. (According to SmartInsights, average conversion rates are 3.73 percent for traditional devices and 1.14 percent for mobile devices.)

Make Sure to Adjust Bids for Mobile Devices

As noted in the previous tip, there’s a significant spread between conversion rates for desktop and mobile. Google Shopping does allow you to set separate bids for mobile so that your budget is concentrated in the area that’s most productive.

Understand as you set your bid, that sometimes the first clicks you get during a path to a sale may be on a mobile device and the conversion may be on a desktop. Bid down mobile too far and you may cut your conversion activity.

Set Up Remarketing Campaigns

Based on the average conversion rate, it’s clear that even the best campaigns capture only a minority of shoppers. What’s more, only two percent of those conversions are captured on the first visit! When visitors drop off, re targeting these visitors with a remarketing campaign keeps your message in front of those prospects for up to 30 days.

Medallion: Your Full-Service Fulfillment Warehouse

Just as online marketing campaigns are not one-size-fits-all, a great fulfillment warehouse should be able to accommodate your individual specifications.

At Medallion Fulfillment & Logistics, we consider ourselves a partner in your success. Our services are flexible enough to scale up or down to fit your requirements.

Contact us today to learn why Medallion Fulfillment & Logistics is the right solution for your fulfillment warehouse needs.

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Should You Drop the Prices of Items Potential Customers Left Sitting in Your Shopping Cart?

Fulfillment Warehouse

Online marketing is aimed at leading a customer to complete the sales cycle by making a purchase that goes to your fulfillment warehouse for processing. Fourth quarter 2017 reports show that more than three-quarters of shopping carts are abandoned before check-out,leaving a number of opportunities for conversion.

Many of these shopping carts are abandoned because the user is simply at the browsing stage. What can you do to improve the closing rates of customers who ultimately change their mind about a purchase? One strategy that’s caused some debate in the online marketplace is the idea of dropping the prices of items left sitting in a shopping cart.

Solving the Riddle of Abandoned Shopping Carts

The number one reason given by customers for abandoning shopping carts is that the additional costs, such as shipping and sales tax, were too high. It stands to reason that lowering the actual price of the item would offset the other charges and make the purchase more attractive.

Some larger companies have used a method in which abandoned items are added to a customer’s wish list. On future visits, the consumer is notified if the price of that item has gone down.

eBay: One Company’s Experience

Last month, eBay sent a letter to their sellers encouraging them to reduce the price of items left behind in online carts in an effort to close the sale. Not surprisingly, the missive generated some strong reactions on both sides of the issue.

Interestingly, one eBay seller took the opposite strategy and raised the price on abandoned items on the basis that the shopper evidently had interest. The seller reports that out of four such items, two actually sold at the higher price.

Will Customers Game the System?

The biggest objection to lowering the price on abandoned items is that customers will catch on quickly and start deliberately leaving carts behind to trigger a price reduction. Online forums show that shoppers are discussing the issue and comparing experiences to get a sense of retailer strategies.

Tips for Closing the Sale

Instead of viewing abandoned shopping carts as a problem, consider them valuable feedback to help refine your sales funnel.

• State shipping policies up front. As previously noted, the cost of shipping and additional fees is the primary reason behind shopping cart abandonment. You may want to consider flat-rate or free shipping and absorb the difference into your selling prices.

• Make sure your checkout process is as uncomplicated as possible. Studies show that seven fields is the optimum number.

• If your site isn’t already optimized for mobile, do it now.

• Use a persistent shopping cart for a seamless experience.

• Offer multiple payment options. Financial transactions have moved beyond credit cards. Include PayPal, Apple Pay, Google Wallet and other digital payment forms.

First-Rate Fulfillment Warehouse Service from Shopping Cart to Final Delivery

A great online shopping experience shouldn’t end once the customer hits “Place Order.” Contact us to learn why Medallion Fulfillment & Logistics should be your number one choice for quality e-commerce fulfillment warehouse services in the Los Angeles, California area and in the greater United States.

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Machine Learning – What You Need to Know and Leverage for Your E-commerce Store

Machine Learning – What You Need to Know and Leverage for Your E-commerce Store

Your e-commerce store has access to more data than retail businesses have had at any time in the past. But the truth is that the most detailed set of data means nothing on its own. It’s the interpretation and use of that data that makes the difference.

Although machine learning is an emerging technology, many providers are already starting to prepare service offerings to allow you to use machine learning to your benefit. Google AdWords is leading the way with Smart Bidding and enhanced bidding algorithms to boost conversions. Expect to see more providers embrace machine learning to help you manage your business more effectively this year.

Machine learning is a powerful tool that processes data far more efficiently than you or your employees could on your own, but you need to prioritize applications for maximum effectiveness.

Which of these technologies would have the greatest impact on your e-commerce store and fulfillment warehouse?

Personalizing the Customer Experience

oday’s technology is amazing, but it hasn’t reached the point of allowing you to provide virtual 3D salespeople for your customers. Without that personal contact, you lose valuable input from body language and other visual cues.

Machine learning can help you recapture that advantage by using data to create customer segments. This lets you target your approach based on specific factors that drive the buying decision for each segment.

Search Engine Ranking

It’s a basic concept: before your prospects can buy from you, they have to find you. How do you get your name out in front of customers before those of your competitors? Machine learning drills down beyond keywords into the nuts and bolts of searches that end with purchases. Google AdWords clients can use Google’s machine learning to provide ad exposure based on demographics and potential actions to improve visits and conversions.

Pricing

The downside of e-commerce is that customers can comparison shop from the comfort of their own home. With machine learning, you can set pricing that’s sensitive to a number of vital factors including competitors’ prices, type of customer and even time of day. Check with your shopping cart software to see how they will be implementing machine learning to assist you in being price sensitive.

Fraud Detection and Prevention

E-commerce companies are more vulnerable to fraud than brick-and-mortar stores are, and the negative effects can remain long after the transactions. Manual safeguards are inadequate, but machine learning can rapidly “spot” potential problems.

Customer Support

How do you maintain effective customer support at scale? The answer lies in machine learning technology such as chatbots, which give your customers the freedom of self-service combined with a high level of support.

Accurate Supply and Demand Prediction

Supply and demand forecasting has long been a staple of retail operations, but machine learning can perform this process with a greater degree of precision thanks to its ability to make discoveries and connections that are beyond the scope of humans.

Product Recommendations

Product recommendations are the best way to generate add-on and repeat sales. But where employees are limited to their own knowledge, machine learning technology can infinitely process and cross-reference buying behavior to discover previously unseen trends.

Elite Fulfillment Warehouse Services for Your E-commerce Business

Medallion Fulfillment & Logistics provides scalable services that grow with your business over time. With advanced technology tools that interface with most major shopping carts, Medallion makes it easy to manage your store at scale.

Is your e-commerce company prepared to handle order-filling and logistics for your growing sales? Contact Medallion Fulfillment & Logistics to learn how our fulfillment warehouse services provide scalable services that accommodate the specific needs of your business.