Category: Fulfillment Warehouse

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How Your e-Commerce Store Can Effectively Compete with Amazon

How Your e-Commerce Store Can Effectively Compete with Amazon

When it comes to e-Commerce and fulfillment warehouse operations, does it seem like all digital roads lead to Amazon? On its face, Amazon’s infrastructure can be intimidating, and few companies have the financial resources to afford losing money, as Amazon does with its free delivery.

This doesn’t mean your e-Commerce store has to raise the white flag. You might not be able to beat Amazon at its own game, but there’s still room for you to stake your place in the e-Commerce market.

Here are some expert tips for claiming your own share of the digital marketplace.

1. Find Your Sweet Spot

Amazon may try to be all things to all people, but that doesn’t mean they’re successful at all of them. Find the area where you’re better than they are and concentrate your efforts on dominating that segment.

2. Be Proactive with Shipping

If you offer free shipping or other perks simply as a response to Amazon and other companies, it comes off as an attempt to follow the crowd rather than truly satisfy customers. Find out what your target market expects from shipping and deliver an experience beyond that.

3. Offer a Subscription Service

Making a sale is just part of the job. Repeat customers are your bread and butter. Create a subscription service, whether it’s for recurring product shipments or an annual program like Amazon Prime. Subscription services keep your customers engaged and help to establish ongoing relationships.

4. Make Technology Your Friend

Convenience is the major benefit of online shopping. Consumers don’t have to leave their home (or even their pajamas) to purchase anything – from groceries to furniture. Make sure you’re taking advantage of the full power of technology to offer a level of convenience that keeps customers coming back time and time again.

5. Build Your Brand

Customers love Amazon for many reasons, but a personal connection is not one of them. Amazon’s brand may stand for features such as price, selection and shipping, but those qualities don’t resonate emotionally with consumers. Identify what makes your company unique and use it in all your marketing.

6. It’s All About Customer Service

Studies show that two-thirds of customers who leave a company do so because they don’t believe the company cares about them. Customer service is one area where Amazon’s size puts them at a disadvantage. Put yourself above them and the rest of your competition by proving superior customer service with a personal touch.

Medallion: Your Amazon Fulfillment Alternative That Gives You Back Control

If you are already selling on Amazon or are considering selling on Amazon, make sure to ask us how Medallion Fulfillment & Logistics can be your own personal “Amazon-Like Warehouse”.

We can ship your products to replenish Amazon stock levels and allow you to continue to sell on your own website. It is important to know that when you use Amazon as your fulfillment resource, Amazon does not share customer email addresses with you. The customers remain customers of Amazon. This action prevents you, and other small niche businesses, from getting repeat sales and from marketing to your own customers; impacting repeat business. This is particularly important for sellers of consumables who would love to establish a long and fruitful relationship with clients.

Having an account with Medallion Fulfillment & Logistics and Amazon can be a win/win proposition. Medallion’s warehouse storage fees are considerably less than those that Amazon will charge and you get access to your own customer information.

Growing your sales requires full concentration. Let our Los Angeles-based California fulfillment warehouse handle your order processing and shipping needs, including cross-docking, credit card processing and telephone customer support.

Contact Medallion to learn more about our fulfillment warehouse services and how they can be customized to fit your needs.

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Switch Fulfillment Houses Smoothly

How to Switch to Medallion Fulfillment Warehouse Smoothly

This article focuses on the issues and steps involved in moving your fulfillment operation. You may be starting from the point where you’ve outgrown your in-house capabilities or have chosen to move your operation from one fulfillment provider to another.

In either case, what’s at stake is the ability of your business to meet its delivery commitments to customers, and we don’t have to tell you what an interruption in service can mean to your company.

Unfortunately, transition planning isn’t a cookie cutter process. Each company has some unique requirements and special relationships with fulfillment providers and/or suppliers.

What follows are some points to consider before, during and after the transition.

Understanding the Logistics Profile

Both you and your new fulfillment company should have planning sessions so that your fulfillment company both understands your requirements and understands how to support those requirements through their operations processes.

Expect that your fulfillment company will have some different approaches in handling fulfillment than that which you are used to. Here are some points to discuss to help understand those differences:

  • Service levels required
  • Sources of inventory and replenishment lead times
  • Special product handling requirements
    • Environmental requirements
    • Fragile, liquid, hazmat
    • Weights and dimensions
    • Lot or serial number control
    • Subscription handling
  • Channel support
    • Eg. Selling on multiple channels – Amazon, Ebay etc.
    • Big box selling (EDI and routing guides)
    • Small box retail (invoicing and pre-stickering)
    • Controlling inventory availability across channels
  • The more obvious discussions
    • Order volumes, line item volumes
    • # of SKU’s and SKU churn
    • Who will handle customer service and returns
    • Packaging and assembly requirements
    • International shipping

Make sure that your requirements are understood and that you understand how your new fulfillment company will handle those requirements.

Systems Integration

Before transitioning any product into the new warehouse, you need to be certain that your systems and those of your fulfillment partner can communicate flawlessly. At the very least, you should be able to connect your ERP and/or shopping cart to your fulfillment provider’s system in order to be able to send orders and ASN’s.

You should also test the capability of sending acknowledgement information back into your operations – example; inventory status, tracking information and receipts. You should become familiar with your fulfillment company’s reporting capabilities and be certain that they meet your analytical requirements.

Your product database should be established on your fulfillment provider’s systems, and an audit conducted to make sure that the SKU’s are in sync and key product information has been passed. Having a methodology for adding and deleting SKU’s is also important.

Shipping strategy should also be discussed and incorporated into your fulfillment partner’s systems. The strategy should include what carriers will be used under what circumstances. What are the strategies for ground, 2-3 day, overnight and international shipments?

When you are very certain that your systems are properly integrated and your requirements understood it’s now time to start the transition.

Communication

At the risk of stating the obvious, it’s important to communicate the new warehouse location and cut over dates to your customers, carriers, vendors and suppliers.

Location Mapping

When practical, if the receiving warehouse can map the locations for incoming stock in advance, a good deal of time can be saved in the initial receiving and put-away process.

Moving Day

A helpful technique in moving product is to move half of the product to the new location while continuing to ship from the old location, once that process is complete, cut over to the new location for shipping and subsequently move the remaining stock.

This 2-stage movement of product will give you a level of insurance in case some key aspect of the transition has a glitch. Once shipping is successful in the new location, the remaining stock can be transitioned.

Date sensitive stock may present some complications depending on the speed at which the stock is moving and the lot size. If it can be done, we suggest using the same strategy of splitting stock by expiration date.

A good transition starts with first contact with Medallion Fulfillment & Logistics or with Sprocket Express. We work hard to make transitioning to our warehouses fast and easy. We look forward to help you experience an improvement in logistics and fulfillment warehouse performance.

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Don’t Burn Up Profits Using Discounts & Specials

Don't Burn Money

Using discounts and specials to drive traffic to your site can be a double-edged sword. Used properly, such sales offers are a powerful tool for boosting conversions. Used haphazardly, however, they can eat-up profits and burn your brand. Effectively utilizing discounts and specials without damaging your brand takes a bit of finesse.

Step-1: Brand Strategy

Brand strategy is essential in choosing the best type of sales offer(s) for your biz. For brands boasting deep discounts and healthy margins, daily or weekly sales may be better for boosting sales. Higher-end brands with slimmer margins, however, do better with customer loyalty-type offers. (This prevents driving in non-loyal/price-driven shoppers.)

Step-2: Selecting a Discount-Type

Popular options include:

  • Percentage off.
    Most common with sub-$100 sales, these range from overall, small 5-20% discounts to larger 50%+ single-item liquidations.
  • Dollar value discounts.
    Most commonly used with sales over $100, pair these with a minimum purchase.
  • Free shipping with minimum purchase.
    Shipping is the #1 reason for cart abandonment!
  • Free gift.
    A great incentive – and a way to rid product that’s not moving.

Step-3: Determining Timing

  • Go weekly or monthly to drive sales and help meet revenue goals.
  • Use pre launch offers to drive traffic and boost interest in new items/businesses.
  • Take advantage of holidays and seasonal milestones to stretch revenue.

Step-4: Converting Missed Opportunities

Sales offers can also help you nab looky loos.

  • Abandoned cart emails bearing free shipping/discount offers are a powerful conversion tool.
  • Social, email, & newsletter subscriptions offers help you broaden your customer base.
  • “Like”, “follow”, “share” & other referral promos are a wonderful way to widen word-of-mouth.
  • First-time shopper offers are a great nudge.
  • Customer loyalty offers keep shoppers coming back for more.

Struggling to keep up with packaging and shipping needs after using discounts and specials? Medallion Fulfillment & Logistics can help. Contact us today.

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Brand Building to Boost Business

Branding for Your Company

A brand, such as Starbucks or Apple, is much more than just a name. Branding encompasses all the thoughts, feelings and emotions people experience when they hear the words “Starbucks” or “Apple.”

Your brand represents the commitment you make to your customers through your product or service. Is your business trendy or classic? Who is your target audience? What is your mission?

Building a brand requires careful thought and consideration. Use these guidelines to create a brand that’s unique, memorable and appealing.

Seven Tips for Creating a Vivid and Memorable Brand

• Figure out who your target audience is. Learn more about their wants, needs and shopping habits by talking to them and following relevant social media accounts.

• Develop a positioning statement. You’ll be tempted to include everything but the kitchen sink, but communicating too much ultimately communicates nothing at all. Stay focused and craft one or two lines that sum up why your business matters.

• Choose a business name, which isn’t as easy as it sounds. If the name is too on-the-nose, it could be awkward if you plan to expand your offerings down the road. You also have to consider logos, website domains and trademark registrations.

• Once you have a name, it’s time to work on fonts and colors. Unless you have a specific reason for choosing something a little more complex, stick with clean and simple fonts.

• Choose a palette based on the psychology of colors, but make sure you consider how it looks in black and white and against different backgrounds.

• What would a brand be without a logo? In addition to the design elements, check to make sure it’s scalable across a range of sizes.

• Write a short but punchy slogan that immediately paints a picture. A slogan is a great way to maintain consistency, but you can certainly adapt it over time as you refine your marketing efforts and strategies.

Now that you’ve created a polished and powerful brand, start applying it across all phases and segments of your business. Don’t forget that consistency is key.

California Fulfillment Services: The Solution for All Your Order Processing Needs

Looking for a California fulfillment services company that will help maintain the integrity of your brand? Contact us to find out why Medallion Fulfillment & Logistics will provide the consistent service your customers expect.

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Five Types of eCommerce Businesses

Fulfillment Warehouse Owner

Which Type of Fulfillment Service is Right for You?

From a fulfillment warehouse perspective, eCommerce businesses have a unique set of service needs. Third-party logistic companies (3PLs) have made significant technical changes in recent years to adapt to the new market structure and the consumer’s need for speed and transparency.

Within the online marketplace, each category has different support needs. When choosing an order fulfillment service, it’s useful to keep in mind that some providers are better adapted to particular types of clients.

There are five categories of eCommerce businesses with different approaches.

The Outsourcer

This is an established company that sells products through traditional retail or wholesale channels and has decided to outsource their ecommerce business. They sell primarily through an established website and a single channel, and have skilled business and technical staff that work with the fulfillment company to implement an integrated process.

Often, these companies have their own technical platforms and require customization to connect to the warehouse for order capture and post-shipment reporting.

The Offshore Company

This client typically has an existing ecommerce business overseas that has been “discovered” by Americans who are ordering product. Given the high cost and lag time in handling B2C offshore shipments, the company needs a partner in the United States to be their local “arms and legs.”

Having a U.S. base helps reduce their transportation costs and improve response times. Outsourcing fulfillment presents challenges with time zones, language/communication, customs, and the establishment of U.S. business entities to handle import duties and taxes. These clients are similar to the Outsourcer, but have the added layer of dealing with a foreign company.

The Entrepreneur

The rapidly falling costs of running an ecommerce business, coupled with the low-entry costs of participating in major marketplaces like Amazon and eBay, have enabled many more people to be able to afford to run an online store. This has created an industry of one-person small businesses and part-time entrepreneurs that usually have other jobs outside of ecommerce.

While the failure rate for these ventures is high, a small percent become successful, either because they have a unique product or hold a niche in the marketplace.

When filling orders or storing inventory gets to be overwhelming, the Entrepreneur needs a company to support their fulfillment. These businesses – especially the part-timers – may lack the support structure of an established business and look to the fulfillment company to be more than someone who stores product and ships orders.

They may need IT support, business-process design, business consulting, purchasing, assembly, and other back-office services. The Entrepreneur can often benefit from an experienced warehouse’s business and technical coaching.

This segment benefits from a highly sophisticated, self-service business model. (Think ATM machines!) Most fulfillment centers offer automated interactions to profitably support this customer segment.

The Multi-Channel Marketer

This is the eCommerce business that has progressed beyond selling through a single website. Marketplaces may include Amazon, eBay, Buy.com, Fab.com, to name just a few. They may be involved in direct TV, small retail or even large retail (Best Buy, Kohl’s, Walmart).

They may sell through drop shippers or boost volume with flash sales. Order volumes in this category may be high, but a high level of technical support is often required, particularly in the setup phase. Each selling channel has a unique fulfillment flow. Significant IT challenges exist in supporting the special selling, branding, distribution and reporting requirements of each channel.

EDI capabilities will often be required. Undoubtedly, the future of ecommerce selling is through multiple channel marketplaces.

Omni-Channel Selling

When a customer interacts with your company in different channels, but their experience feels seamless, this is called omnichannel selling. It differs from multi-channel selling in that the interactions are all connected in one central data hub.

This is a customer-centric experience with a powerful impact. For example – you sell in stores, social media, by phone, and through mobile shopping, and your customers can move between the channels without obstacles.

They can order online and pick up in the store, or visit your Facebook profile and then order via mobile app. This strategy retains the most customers and offers them the most options. Plus, your analytics are more meaningful because they cover all channels to give you an accurate picture of your entire operation. Platforms such as Shopify and BigCommerce are excellent foundations for omnichannel selling.

What All This Means to You

It’s clear that each business has its own priorities, but understanding the categories will help you select the right fulfillment center for your needs. Medallion Fulfillment & Logistics has coached many clients on supply chain and logistics strategies. Read our fulfillment transition guide to help you plan a successful move that causes little or no disruption to your customers.

Our robust array of services meet the needs of the most discriminating customer. Contact us for more information and a free price quote.