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.

USPS Disruptions and Delays

USPS Announces Delays

We were just on a call with the United States Postal Service. They are clearing a lot of the backlog of mail, but delays still persist. Some of the ongoing issues are due to the lack of air transportation and delays with Customs.

Please note the additional countries suspended from service. For a full list please refer to the Post Office’s link below.

https://about.usps.com/newsroom/service-alerts/international/

We are sorry for the delays as this has been both unprecedented and unforeseen. Every day it seems that we are facing new challenges. Rest assured that shipping quickly to your customers continues to be our top priority.

USPS Announces New Software Changes Today

Today, Wednesday, April 29, 2020, from 10:00 AM CT to 2:00 PM CT, the United States Postal Service will implement the following software change: Package Platform Release 2.1.4.0.

Delivery of packages will not be impacted during the implementation and validation window, there will be processing and reporting delays related to receipt of the following data:

• Pricing Data
• Fee Assessment Data
• Final Notification Data
• Informed Visibility Mail Tracking and Reporting (IV-MTR) Data
• Enterprise Payment System (EPS) Reporting Data
• Package Platform “USPS Automated Returns” Data

Notification will be provided immediately after release-related activities conclude.

Why Offering Free Shipping will Increase Your Online Orders

During the Coronavirus Pandemic Boost Sales with Free Shipping

Shipping plays a huge role in e-Commerce.  Free shipping is increasingly the number one promotional tool used to entice online shoppers during the virus pandemic. Many of the major online players including Amazon and Walmart offer free shipping. Free shipping is a major tool retailers use to attract new customers and keep existing customers.

According to comScore, a leading Internet marketing research company, during the first three weeks of the holiday season in 2010, 45 percent of transactions included free shipping, the percentage rose to 50 percent by the 21st of November, increased to 55 percent in the week ending November 28 and was still at a high rate of 51 percent in the week ending December 5. It’s important to note, transactions using free shipping for the week ending December 5, 2010 averaged $125.20, 45 percent higher than orders using paid shipping.

> Consumers Expect Free Shipping

Due to the prevalence of free shipping in online retailing, consumers expect it when shopping on the Web. A recent comScore survey showed 84 percent of consumers indicated free shipping was somewhat or very important when making purchases and may be even more important during the virus pandemic.

Jeffrey Grau, principal analyst at eMarketer, said “Free shipping makes e-commerce more appealing. A lot of people won’t buy from a website if there isn’t some sort of free shipping. It’s almost a requirement.”  He went on to say “Retailers have to decide for themselves whether the potentially higher sales can justify absorbing the shipping costs. They’re going to hope for higher volume and slightly lower margins. They’ll try to make up the cost in higher volume” (E-Commerce Times).

Free Shipping Day, held on the 17th of December, is an example of the power free shipping has on consumers. In 2009, Free Shipping Day accounted for $586 million non-travel retail spending and surged to $942 million in 2010, a 61 percent increase (comScore).

Azita Arvani, principal of the Arvani Group, said “The biggest friction points in online shopping are payment and shipping. By offering free shipping, it reduces a key friction point, which should result in more sales, provided the offer is not too restrictive to a point of being meaningless to the consumer” (E-Commerce Times).

> Don’t Ignore the Trend

The free shipping strategy includes the prospects of thinner margins or higher prices on merchandise, however online retailers who ignore the trend will likely have lower transaction volumes. By enticing consumers with free shipping, retailers may be able to avoid offering deep discounts on their merchandise.

Charles King, principal analyst at Pund-IT stated “Free shipping is always a bonus, especially when money is tight, consumers are getting creative. They want a high-dollar item that won’t have a stiff shipping fee. Getting the shipping free makes sense” (E-Commerce Times).

> Free Shipping, a Daily Promotion

Increasingly, free shipping has become a daily promotion in online retailing. According to comScore, in the third quarter of 2010, 41 percent of all online retail transactions included free shipping. Gary Reblin, Vice President, Domestic Products , U.S. Postal service, believes the growth trend in e-commerce transactions coupled with free shipping in the business-to-consumer segment continues to be the number one compelling force in the shipping industry (Source: PARCEL).

Free shipping is a great way to stay competitive and increase sales. Free shipping is also a good way to get rid of last year’s merchandise. However, to keep a healthy profit margin   it’s vital for retailers to partner with a savvy, experienced fulfillment service such as Medallion Fulfillment and Logistics to keep shipping costs low. A knowledgeable fulfillment company knows how to take care of a large increase in orders and can negotiate based on volume for the lowest packaging and shipping rate possible.

As you plan your virus pandemic selling strategy, consider that consumers have come to expect free shipping during the year and in the holiday season – free shipping can make or break your own promotion projections.

Don’t Let Your Business Suffer Due to Amazon’s Policies, You Have Options!

Learn About the Amazon Effect

We’re all about solutions here at Medallion Fulfillment & Logistics. The coronavirus pandemic demands that we think outside the box to keep businesses growing and homebound customers satisfied.

Amazon froze shipments from March 17th to April 5th, and now states the following on their website:

“While we will continue prioritizing the products we can receive beyond April 5, we are now able to broaden the list. Given our constrained capacity, we are doing this on an item-by-item basis. We have updated the Restock Inventory page and Restock report in Seller Central so you can check which products are eligible for shipment creation. We consider many factors when determining eligibility, including high-demand products customers need now; current inventory levels and inventory in transit; fulfillment center capacity; and our ability to adhere to the latest health guidelines.” Read the full article at Amazon Seller Central.

What we are hearing from Amazon sellers is that Amazon is restricting their incoming stock replenishment shipments. Interestingly, when you order Amazon products like the FireStick, as one of our team members did recently, there was no shipping delay for a purchase of Amazon’s branded products.

To solve “unfair practices” that Amazon is enforcing as policy, we have developed a special program called FBM (Fulfillment by Medallion). The FBM program allows you to ship product to both or either of our East Coast or West Coast warehouses, and gets you back shipping goods to customers the day after we receive your products. This redundancy with FBA lets you be proactive to the current business and virus situation. And, our FBM allows you to leverage sales to homebound workers; who may be shopping to pass the time, or who are buying items for family members to stay entertained with while home from school. With no shipping or stock restrictions, our program can get you back in business fast!

You can easily select to move to Fulfillment by Seller within Amazon Seller Central and not be held hostage or be affected by Amazon’s policies.

With a growing dissatisfied Amazon warehouse staff that has done a limited walkout and has expresses fears of contagion requiring management to provide temperature checks and masks in warehouses, FBA now seems a less stable option for businesses in the coronavirus era.

Here’s how our FBM (Fulfillment by Medallion) program works:

1. Ship your goods, or a selection of goods, to our East Coast or West Coast warehouses or to both.

2. Our special dedicated FBM On-Boarding Team fast tracks processing and works with you to implement your ordering and shipping fast. We can start shipping orders the day after we receive your products in our warehouse.

3. There are no long term contracts and you can even get a formal and affordable price quote today.

4. Get back in business – shipping to homebound and internet-connected potential customers in one day after receipt of your products in our facility. Don’t miss a beat and make your sales projections this quarter, even with communities and workers on lockdown.

After the threat is over, we think you’ll stay a Medallion FBM customer due to our affordable pricing and can-do attitude. Don’t let your business merchandise be held hostage by Amazon; you have an affordable option – FBM (Fulfillment by Medallion).

Give us a call today and let us show you how we can get you back in business fast.