Category: Massachusetts Fulfillment Services

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The Amazon Effect: Considerations for eCommerce and Brick and Mortar Store Owners

Fulfillment Warehouse

In the increasingly crowded and competitive world of eCommerce, Amazon remains the gold standard. The impact of the online retailing behemoth has been so primal and far-reaching that marketing experts have coined a term for it: “Amazon Effect.”

As the leader in California and Massachusetts fulfillment services, we work to stay on top of trends and innovations influencing the industry. Here’s what you need to know about the Amazon Effect and how it applies to your business.

Shifting Buyer Expectations

Amazon’s principal effect has come in the area of buyer expectations. Consumers are demanding a buyer’s journey be “frictionless and immediate,” and these expectations cut across the digital arena to goods and services purchased in brick-and-mortar locations.

These three benefits top the list of what retailers are expected to provide today:

• Free shipping, which is most prominently featured in Amazon’s Prime membership program. While shipping costs can be steep, Amazon has found that it’s paid off in powerful customer loyalty and add-on sales.

• Speedy turnaround time, where customers receive orders in days rather than weeks. Amazon Prime’s free shipping takes only two days, and same-day delivery is available in more than 10,000 locations.

• Easy access, with a variety of options for ordering and delivery. For example, Amazon offers delivery or pick-up for grocery orders and certain items are eligible for subscriptions where orders are entered and delivered automatically.

Generational Differences and the Millennial Mindset

Not surprisingly, younger consumers who have spent their entire lives with technology are more demanding when it comes to eCommerce fulfillment and delivery. A 2018 survey of online shoppers in the U.S., Canada and U.K. found that less than 50 percent of respondents between the ages of 18 and 34 were fully satisfied with their orders.

Other studies have uncovered the “Millennial Mindset,” which Amazon has embraced with great success. The Millennial Mindset is a group of six brand values that buyers from 18-34 rate highly in their shopping experience:

• Social Circle: Is a brand popular within a buyer’s circle of family and friends?

• Self: Does a brand generate an emotional connection?

• Innovative: Does a brand lead its field in creative advancements?

• Trusted: Does a brand have consumers’ best interests at heart?

• Purposeful: Does a brand contribute to the greater good?

• Accessible: Is a brand easily assimilated into a buyer’s lifestyle?

While this mindset originated with Millennials, it’s having a ripple effect through other generations. At this point, Generation X has adopted the mindset nearly as completely as Millennials have.

Countering the Amazon Effect in Brick-and-Mortar Stores

• Use locations to complement eCommerce, not duplicate or compete with it.

• Engage high-tech solutions to track in-store behavior

• Leverage mobile apps with mPos, location-aware coupons and personalized service.

California and Massachusetts Fulfillment Services that Exceed Customer Expectations

Medallion Fulfillment & Logistics and Sprocket Express provide a comprehensive set of eCommerce services that scale to meet your specific needs. Contact us to learn more about why we should be your first choice in cost-effective and efficient California and Massachusetts fulfillment services.

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Are You Using The Power of Three to Boost Online Sales?

Learn More by Following Medallion Fulfillment & Logistics

Are you familiar with the “power of three?” Studies show that three is the sweet spot when it comes to the brain’s ability to grasp concepts.

This principle can simplify your plans for boosting your company’s online sales. Focus on optimizing these three opportunities for a well-rounded approach that produces steady growth.

1. Grow Your Customer Base

Not surprisingly, this is often the primary goal of most companies. Gaining new customers expands your reach in the marketplace and offsets attrition from accounts that drop off due to business closings and other factors.

The trick is to set yourself apart from the competition by demonstrating that your product or service can best solve a prospect’s problem. This requires a thorough knowledge of your target audience along with compelling content on your website.

Customer conversion is essential, but it’s the most expensive and time-consuming way to increase online sales, which is why you can’t afford to ignore the other two methods.

2. Grow Your Average Order Size

Once a customer makes the decision to buy from you, the hard part is over. You’ve established a level of trust that makes them willing to spend money on your product or service.

Effective ways to increase order size include:

• Upselling a related product, such as suggesting a belt to go with a pair of pants.

• Offering a discount for multiple quantities.

• Selling an upgrade to a higher level of an item, such as a cell phone with more memory.

• Bundling similar items, much like Amazon does when they suggest an additional book on the same topic.

• Suggesting complementary products, such as batteries to go with the kids’ holiday toys.

• Providing options for longer commitments, perhaps a one-year membership instead of one month.

• Selling extended warranties.

• Including a menu of add-ons.

• Offering expedited delivery.

• Showing products other customers have bought at the same time as the current item.

3. Grow Your Number of Repeat Sales

It’s a well-established truism in sales that it’s less expensive to keep existing customers than to find new ones. Satisfied customers pay benefits in repeat sales, plus they’re more likely to provide referrals.

Promotions can play a major role in bringing past customers back for more. Send follow-up emails with coupons, sales and suggestions for similar or related products.

Selling online doesn’t mean you can ignore customer service. It’s actually even more important, because buyers can find new suppliers from the comfort of their living room. Superior customer service is the best way to make sure your company makes a lasting impression.

The Leader in California and Massachusetts Fulfillment Services for Online Retailers is Medallion!

At Medallion Fulfillment & Logistics, your success is our success. Our comprehensive offering of California fulfillment services provides everything you need, from warehousing and order picking to credit card processing and shipping.

Let our California and Massachusetts fulfillment services company handle the details so you can concentrate your time and energy on growing your online sales.

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Boosting Your Business with Loyalty Programs and Incentives – 3 Considerations

As online shopping continues to make the consumer marketplace broader than ever, incentive-based programs remain an effective way to gain, nurture and retain customers. Not convinced? Consider these eye-opening statistics:

• According to a January 2016 report in Chief Marketer, the average North American shopper is a member of 13 loyalty and promotional programs.

• Jupiter Research has found that 80 percent of Internet users enter a sweepstakes at least once a year.

Planning Your Promotional and Loyalty Programs

Promotional programs should be planned carefully to get the most bang for your buck. Here are three factors that play a crucial role in the success of any rebates, contests or loyalty rewards.

1. Big Data
While the term may not sound particularly sophisticated, it gets right to the point: “Big Data” refers to the massive sets of information that can be captured and analyzed to uncover consumer habits, patterns and trends. The amounts of available data are increasing exponentially, so the key is getting your arms around it up-front to keep it organized and consolidated in a way that allows for thorough and accurate analysis to allow you to have actionable information for your promotion.

2. Social Media
Platforms such as Facebook and Twitter have become popular vehicles for promotions, and growing channels Instagram and Snapchat have quickly joined the party. It pays to partner up with a promotions expert who understands how to best leverage social media for easy participation and maximum returns.

3. Rise of the Millennials
Millennials are defined as young adults born between the years of 1980 and 2000. Members of this tech-savvy generation are more willing than their parents to allow access to personal data and web habits when the results, such as personally targeted offers, benefit them. Combine that with an expected spending power of $1.4 trillion by the year 2020, and it’s clear that millennials should be a big part of your promotional plan.

Medallion Fulfillment & Logistics: Your One-Stop Solution

For 2020 plan on focusing on growing sales and boosting your marketing efforts and let us handle the rest. We have more than 25 years of experience handling fulfillment services ranging from receiving and warehousing goods to credit card and rebate processing. Contact us today to learn more about how we can be a full-service solution for your fulfillment needs.

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USPS Service Interruptions to Greece

Update on Mail Services to Greece

On November 6, 2020 the United States Postal Service received notice from Greece that effective November 7, 2020 a lockdown will be implemented throughout the country of Greece due to the COVID-19 pandemic.

There is a direct impact on collection and delivery of mail and packages sent through the Hellenic Post (ELTA).

This update impacts Priority Mail Express International, First-Class Mail International and First-Class Package Service, Priority Airmail. Surface Air Lift and M-Bag items.

For a full list of international service disruptions please visit https://about.usps.com/newsroom/service-alerts/international/welcome.htm

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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.