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The Technology Behind Successful Ecommerce Fulfillment

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Online sales in the United States have more than surpassed expectations. In 2012, online sales hit a record $226 billion, and accounted for 7% of all total retail sales. Experts projected $327 billion by 2016, but they were wrong… Total online sales in 2016 were $394 billion! If your fulfillment company isn’t participating in the ecommerce segment, no doubt you know that you’re missing out on an exceptional opportunity!

In this article, I’ll focus on the technological capabilities a warehouse needs in order to implement an ecommerce fulfillment service. The article isn’t going to be about listing the pros and cons of the Top 10 software programs on the market, because I don’t know your current capabilities or strategic goals. Instead, I believe that the most productive approach is to breakdown the process to help you identify where you can improve your systems.

Let’s talk about process integration. Ecommerce clients will typically approach a fulfillment company with an established business infrastructure. Integration means adapting your systems to plug into those of your customer. The processes that are frequently affected are:

• Order Capture & Management

• Picking/Packing & Shipping

• Synchronizing Order and Inventory Status

• Visibility

• Client & Customer Service

Order Capture & Management

There are more than 300 ecommerce shopping cart companies on the market. Your company needs to be technically capable of adapting to the wide variety of methodologies for communicating with those carts. Orders from carts need to be harvested on a regular basis, controlled to insure none are dropped or duplicated, and converted into a form that is compatible with your system.

I believe this area represents the greatest technical challenge for fulfillment companies in the ecommerce space. Your tool bag for interfacing with a client’s systems must include a wide array of technologies, including the ability to interact with flat files, Application Program Interfaces, Web Services, File Transfer Protocol, call center systems, and the occasional manual-order entry. IT resources to plan the implementation and support this process need to be broadly skilled and creative. Administrative resources that perform the daily-order harvesting routines need to be highly attentive to detail.

Picking/Packing & Shipping

This process is probably the most straightforward. Picking slips are generated, product is picked and boxed, and shipping labels are applied using traditional fulfillment methods. Although there may be special requirements for packing slip and box branding, those requirements don’t vary much from conventional fulfillment. It is essential to operate at a very fast past as ecommerce performance is measured in hours and the volume of orders is measured in thousands per day.

Synchronizing Order and Inventory Status

Ecommerce fulfillment requires that the client’s shopping cart has the most recent inventory and order status information. Your systems need to regularly communicate inventory availability to the cart to ensure that a client’s customer is made aware of out-of-stock situations before placing an order. Customers also need to be able to reference the shopping cart to find the status of their order. Process synchronization between your operation and that of your client is an absolute necessity.

Visibility

Ecommerce fulfillment is very fast moving! We used to joke that customers would press the “buy” button and run to the front door looking for the UPS truck! With Amazon’s latest experiments in same-day delivery, this joke is almost a reality. Given the speed of ecommerce, it’s important for your clients to be able to have a real-time window into your process and inventory. At a minimum, clients should be able to see orders and inventory in near real time. The leading-edge, ecommerce fulfillment companies have taken a more pro-active stance by publishing “alerts” when important events are happening in the fulfillment process. Alert examples might include: Product X is running low on inventory; a new shipment of stock has arrived; or a customer has returned an order.

Client & Customer Service

The fulfillment process is heavily impacted by fast-paced marketing and promotional decisions. Ecommerce client support typically requires a designated coordinator to represent the client’s requirements to the fulfillment organization and to coordinate program changes. The volume and minutiae of detail often warrant the implementation of “issue logging” and “project workflow” processes within the organization. Given the pace of the business, these processes are best automated.

Some clients, particularly the Entrepreneur and Offshore segments, may ask the fulfillment organization to manage customer support. This might involve call-center work, authorizing returns, handling the occasional complaint, and so on. These client groups often have too small a volume to outsource their work to large call center. Having an arsenal of exceptional customer-support tools, therefore, positions you to capitalize on a good revenue opportunity.

In summary, successful ecommerce fulfillment relies on solid technical foundations. Warehouses and 3PLs must understand that ecommerce clients have very different needs (and expectations) for the technical aptitude, agility and pace of their fulfillment partners. To fully capitalize on the ecommerce segment, your fulfillment service must meet–and exceed–these requirements.

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Google’s Going Local, Why Google Business Profiles Are More Important than Ever

Small business owner using Medallion Fulfillment & Logistics.

Have you noticed the change in Google.com results? Have you seen all the red icons in front of listings whenever you do a Google search that contains a city location in the query? Are you noticing that your website’s organic (unpaid placement) seems to be pushed down below a myriad of local results? Welcome to the new world of Google’s localized results!

With Google pushing location specific listings pulled from their Google Business Profile index, it’s getting harder for prospects to find your “real” website. Localization is the rage with search engines right now; even Bing has gotten into the act. It is now more important than ever to use your local business profile page as a doorway to bring visitors into your website. As Google is the big player in the world of search, we’ll focus on discussing Google Business Profile accounts in this article, but be aware that Bing has similar service.

If you have a business, you most likely already have a Google Business Profile even if you never created one. Google has planned ahead for you, and has created a profile page just for you, based on the information that it has found on the Web about your business. It’s your job to claim it, and then work the page over so it can be a selling and review tool to funnel customers and prospects to your “real” website.

How do you claim your listing?
First, visit this page: http://www.google.com/business/. On the right you will see a section for business owners. Your listing is free, but you will need to set up or tie an existing Google account login to your new Google Profile account. One word to the wise, if you are paying a third party to do set up for you, make sure that they tie the Google Profile account to you and not to themselves. You want to retain ownership of your Google Business Profile page as long as you have your business.

The sign up and set up interface is easy to use. You will enter in your physical address (no P.O. Boxes allowed), your phone number, email address, website URL, business description, and then select service or product categories. Don’t be afraid to choose custom categories that are short keywords of the services or products you provide. You can only set up a maximum of five categories.

Your Business Profile page is not complete until you enter details about your business such as: operating hours, types of payment accepted, photos, YouTube.com videos, and finally the important “additional details.” Take time to add “additional details” that make sense. We recommend using keyword phrases for these “additional details”. Keep in mind that what you enter here should be considered like a bulleted list, with a one to three word clarification in the second field to the right of the entered keyword. Focus on keywords that are indicative of what you sell and in a very short concise format.

Although you are done, your Business Profile page will not go live until Google has verified that you are really located at the address your have listed in your Google Profile account. Plan on two weeks for a postcard or plain envelop to come to you via regular mail at the listed location. This correspondence will contain a PIN. You must enter this PIN number in your Google Profile account for your page to be put in the indexing queue. It may then take another one to four weeks for your listing to actually become live. Unfortunately setting up and verifying a Google Business Profile page is not quick process but make sure to follow the instructions carefully. If someone has already claimed your physical location you may not be able to claim it as well. This is an important note to remember for office buildings and even businesses sharing physical spaces with the same street address.

How to maintain top position with your Google Business Profile?
As Google Profile pages are so important now in the organic results, how can you improve placement and then retain it once you win it. We recommend that you do monthly updates of your photos and videos on your Google Profile page. If you don’t have videos, now’s the time to start getting creative and make several short videos using your digital camera. Just load your video files to YouTube.com (tied to the same Google account that you used for your Google Profile page). Insert the YouTube.com link to the video into your Google Profile account in the video section. You can show up to five videos at a time. As for pictures we recommend sizing 20 or so into a square shape and then rotating ten different ones each month. Google seems to like and reward Profile pages with better placement that are actively managed on a regular basis.

Google also seems to reward Google Profile pages with better placement when the business offers coupons and has more review than their competitors. Not all markets seem to have a clear cut path to top placement, but we do know from information found online that in major markets reviews and coupons are just one of the keys for top placement of a Google Business Profile page. Your geographic proximity to the person who has searched is still the top determining factor in which businesses are shown and then coupons and reviews will additionally rank the returned business listings.

Where do the reviews come from that appear on my Google Business Profile page?
Google scans the Web and may pull reviews from all over and embeds them on your Google Profile page. But more often than not, it is real business users that leave reviews directly by visiting your Profile page if they are logged into their own Google account.

Unfortunately, you have no control of the reviews that appear on your Profile page. However, as the page’s owner, if a poor review is posted, you can respond to the review, but there is no “remove this review” button. You can however flag the review for Google as inappropriate, but Google may leave the review at their option.

Be careful if you are using a third party set up service that the creation of fictitious reviews is not part of your package. Your Profile page could be dropped from the index by a violation of Google’s terms of service.

In conclusion, with the advent of search engine localization, claiming your Google Business Profile page is a very important aspect of managing your online presence. With Google Profile pages being ranked higher than websites for search queries that contain a location, we recommend using this Google tool to your advantage to funnel clients and prospects to your website.

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Protect Your Supply Chain with a Focus on Cyber Security

Supply Chain Security Tactics for Fulfillment Company

Disruptions to the supply chain your company depends on can lead to costly problems for your business. Cyber security threats are among the biggest risks to the supply chain as more and more businesses and consumers use online services. From keeping your fulfillment warehouse up and running to protecting your supply chain, consider the following to enhance cyber security.

Cyber Security Education Is Key

Making sure every member of your IT team and other staff are aware of cyber security measures helps keep your supply chain data safe. This involves educating them on the potential risks to data security, such as malware, and ways to protect data. All members of your staff should collaborate in order to ensure that your supply chain has maximum protection from cyber security risks.

Encourage Shared Responsibility

Taking measures to boost cyber security protection for the supply chain should involve your supply chain partners and customers, along with your staff. Promote shared responsibility among these different parties to keep the supply chain safe. Otherwise, vulnerabilities could end up affecting the supply chain, putting data at risk. For example, ensure that staff, partners, and customers have secure ways to connect devices to your system.

Adopt Zero Trust Principles

These principles are an important part of finding weaknesses in the supply chain, such as devices used in the manufacturing industry or delivery services. Zero Trust means that cyber security isn’t taken for granted based on the location of physical devices or networks or based on who owns and operates them. This encourages businesses to take extra steps to protect the supply chain from potential cyber security threats.

If you’re searching for a fulfillment company and warehouse to help your business succeed, please contact Medallion Fulfillment and Logistics. We can help your company grow and thrive in the new year.

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Shipping Issues Expected for Summer 2023

image concept of transportation.

Over the last few years, the global supply chain has been an indirect victim of the pandemic. Widespread shutdowns caused unprecedented interruptions in both consumer purchasing and availability of goods and materials.

Are there any lingering effects from this historic event? Our fulfillment company staff shares industry expert predictions about what to expect this summer.

Freight Rates

• During the pandemic, logistics costs rose sharply, which was one of the elements contributing to high inflation. Over the last year, ocean freight charges have declined, with some lanes back to pre-pandemic levels.

• Falling rates are attributed largely to a drop in consumer spending, which had risen over the last two years as importers enjoyed increased sales.

• Carrier alliances are in a period of flux, as seen with the pending split between Maersk and MSC. Some experts believe this may be the beginning of a rate war.

Despite these changes, experts caution that freight rates and shipping prices have not yet leveled off.

Shipping Demand and Inventory Volumes

• Consumer spending remains low, with more money being spent on services rather than goods.

• Job markets and wages continue to be strong. Whether this leads to growth in spending depends on consumer sentiment in the face of recent bank failures and rising interest rates.

• Shipping demand is beginning to creep back up as inventory levels are depleted. Import volumes saw monthly increases during spring, and this trend is expected to continue into July.

• Labor disputes involving Local 13 of the International Longshore & Warehouse Union (ILWU) may impact traffic at the Los Angeles and Long Beach ports.

Streamline Operations With Our Fulfillment Company

Experts recommend partnering with a fulfillment warehouse to mitigate the effects of demand fluctuations and changes in shipping rates. Contact Medallion Fulfillment & Logistics for a solution to fit your specific needs.

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Ecommerce Management Resolutions for 2023 – Are You On Track?

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For 2023 you made a resolution to lose weight, read more and eat your vegetables. Have you given any thought to New Year’s resolutions that you made for your Ecommerce business? With May upon us, it is time to review what you resolved to do with your business now to see that you are on track to meet your goals.

Our fulfillment warehouse team is here to offer some helpful suggestions to help you stay on track or catch up.

1. Step up your customer service.

If December is a month of sales, January is a month of returns. People are taking stock of their gifts, sorting out which ones to keep and which ones to send back.

While no business enjoys dealing with returns, how you handle them will greatly affect how customers perceive you. Gracious and professional customer service will leave people with a favorable impression. In many cases, you may even manage to turn those refunds into sales.

If you did not review your return policy and customer service, now is a good time for a checkup.

2. Get creative with marketing techniques.

Post-holidays, customers go into January with a shopping hangover, leaving sales as cold as the temperatures. Dig deep into your marketing bag of tricks for creative ways to generate sales. There is still time to do some constructive promotion planning this month to assure you meet your sales goals.

Consider these possibilities:

• Review abandoned shopping carts from the last few months and send emails to gently prompt customers to complete the sale.

• Encourage shoppers to redeem gift cards at your online storefront.

• Make judicious use of discounts and coupons. For example, make them contingent on a minimum purchase to drive multiple sales.

3. Analyze your inventory.

After the controlled chaos of the holiday season, inventory numbers may be off. Now is the time to reconcile quantities on hand and current pricing to avoid disappointed customers.

Did you turn up some products that didn’t move as well as expected? Run a sale to help clear out those items and make room for new products.

If you skipped this review earlier in the year, now is a good time to take stock of your inventory and do clearance sales or routine reorders.

Team Up with Our Fulfillment Warehouse

Inventory reporting and quality customer service are just two of the benefits provided by partnering with Medallion Fulfillment & Logistics. Contact us today for more information.