Category: West Coast Fulfillment Warehouse

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4 More Signs it’s Time to Outsource Fulfillment

Questions on Amazon

There are many reasons your business may consider outsourcing to a fulfillment service. The most important, although difficult to monetize, is time. Once your business has grown beyond the startup phase and begun to sustain itself, prioritizing your time, and that of your employees or partners, is crucial to continued success.

In addition to needing time to concentrate on business growth, here are four more signs that it is time to outsource your fulfillment.

Too Many Questions

You are an expert in your field. Your business knows its target markets and has a plan in place to increase sales. As your product offering widens and your customer base grows, your orders become less homogeneous. Soon you intend to pursue wholesale customers, increasing the variety even further. All of these changes bring questions.

What is the best shipping method for wholesale orders? Is it the same as retail orders? Should we use the same carrier for all packages to increase volume discounts, or can we save money in other ways? Do we need to stock more shipping box sizes? And, above all, are we paying too much for shipping?

A reliable fulfillment service already has the answers to your questions and will allow you time to market your business and develop your assets.

The Sea of Rising Costs

Shipping costs have risen over 60% in less than a decade. Many companies spend 10-12% of their revenue on shipping costs alone. Utilizing different carriers for different shipping scenarios can save money, but diffuses your volume discounts for a single business.

An established fulfillment service is able to offer discounted freight rates based on the volume they handle for all clients together. Leveraging this power in numbers will save your business more money than it can earn from its own volume discounts for many years, if not indefinitely.

As sales grow, many related costs increase: the staffing costs to pack and ship orders, packaging materials, storage space, shipping costs, returns processing, and more. This is in addition to advertising and marketing costs, manufacturing, freight, web development, legal and other expenses. And time, the most precious and nonrenewable resource. When the fulfillment need begins to drain resources, outsourcing is the decisive action that consolidates and manages these costs into one bill, one concern, one (very important) cog in the wheel.

A Barrier to Growth

Expanding to new markets and marketplaces requires planning and logistics management. The software integrations alone can save valuable time for a growing business. Third-party logistics partners (3PLs) like Sprocket Express have existing software integrations that can take your orders directly from most any shopping cart or marketplace and automatically process the orders through their system.

With expansion, peak season traffic also increases. This is great news for your business, but is your in-house capability ready for the heightened activity? With a professional fulfillment partner, your business can focus on promotions and social media, rather than shipping orders during busy times. They will have seasonal staff on hand to meet the demand and they have regular pickup, plenty of packing materials, and the experience to keep the whole thing running smoothly.

Trying to forge ahead once your business reaches the tipping point can impede your success. It’s like trying to start two businesses- one in your field and one in the fulfillment field. If that idea resonated with you, it is probably time to outsource.

Warehouse Space

Depending on your product line, warehouse space may become a concern early in the game. For businesses that import containers of goods, storage space is key. If your products are small and/or purchased in small quantities, it may not be urgent to find a separate location for storage. For those that deal with large items or quantities, a professional warehouse is immensely helpful. Over time, it will save money to use a warehouse rather than your own business space to house inventory.

Conclusion

Recreating a knowledgeable and experienced shipping department is a deviation of resources, both time and money. Once you have taken hold in your market, diverting your focus to this task may not be the best course of action. Outsourcing fulfillment at this crucial moment can streamline your operations and provide room to scale.

If you are ready to consider outsourcing your order fulfillment, contact us for more information.

Sprocket Express is a division of Medallion Enterprises and owned by Medallion Fulfillment & Logistics.

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Tips for Building Customer Loyalty and Repeat Customers

Medallion is a California Based Fulfillment Company

As with many companies, your marketing efforts are probably directed primarily at converting prospects. But research shows overwhelmingly that repeat customers provide more value in sales and referrals at a lower cost to you.

Doesn’t it make sense to focus marketing activity on customer retention? Our California fulfillment services experts offer some creative suggestions to drive repeat business.

Create a Loyalty Program

A loyalty program is a simple but effective tool that incentivizes customers to come back to your website. Analyze sales reports to determine which criteria to use, such as rewarding repeat customers by volume or number of purchases.

Establish Trust

Consistency and transparency are two factors in building trust with your customers. In addition to making repeat purchases, consumers respond to trustworthy sellers by sharing their positive experiences with others A Forbes study shows more than 80 percent of respondents make purchases based on recommendations by friends and family.

Maintain a Social Media Presence

E-commerce lacks the personalized touch offered at brick-and-mortar stores. Connect with customers by staying active on social media. Answer questions, respond to comments, participate in discussions and post 10x content, original or shared, with genuine value to your target audience.

Sell a Superior Experience

“Sell the sizzle, not the steak” is a classic advertising motto based on the concept that customers respond to benefits, not features. With the amount of competition in today’s marketplace, it’s more crucial than ever to set your business above others by offering a unique buyer experience.

Use Packaging for Promotion

Even if you’ve never ordered from Amazon, chances are you’ve seen their shipping packages numerous times in places ranging from a friend’s home to a post office or UPS store. Take advantage of all that space on your packaging to keep your brand name and logo in front of current and potential customers.

Capture Conversions with Remarketing

All repeat customers begin as first-time customers, but industry statistics show that the average website loses approximately 98 percent of first-time visitors without a conversion. Remarketing with targeted ads to previous website visitors keeps you connected until they’re ready to buy.

Leverage Data

Digital marketing provides sellers with greater quantities of granular data than were ever available previously, but it means nothing unless you act on it. Mine data to learn as much as possible about your customers and use that data for targeted marketing campaigns and offers.

Provide Prompt Fulfillment

No matter how great your product is, nothing dampens a customer’s enthusiasm like long shipping times. If buyers know they can count on your company for prompt and professional order fulfillment, it gives you a distinct advantage over your competitors.

Boost Repeat Business with Our California Fulfillment Services

Are you finding it a challenge to juggle the demands of growing your business with the responsibilities of providing superior customer service? Let our California fulfillment services company handle your order processing needs from receiving and warehousing to shipping and customer support. Contact Medallion Fulfillment & Logistics for more information.

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New Important Updates for January

Learn About the Amazon Effect

Here are a few links to help you understand some of the big changes that have already taken effect and could impact your bottom line. 

NOW through January 24th, USPS Rates have DECREASED to 2020 Rates

  • Temporary Rate Increase has EXPIRED
  • First Class Shipments reduced $0.25
  • Priority Mail Shipments Reduced $0.40
  • NEW 2021 Rates Take effect January 24th and can be downloaded here https://pe.usps.com/PriceChange/Index

UPS 2021 increase started on December 27th

UPS Announces 2021 General Rate Increase – ParcelIndustry.com

FedEx 2021 increase starts January 4th

FedEx 2021 General Rate Increase – ParcelIndustry.com

The cost of shipping is an unforgiving part of the new normal. Managing your shipping costs has never been more crucial to your success.

Value Added Tax (VAT) Must Be Collected Starting January 1st for the UK

Effective Jan 1, 2021, Value Added Tax (VAT) must be collected for all goods
entering the United Kingdom (UK).

There will be a 20% VAT rate on goods valued up to £135 (about $180 USD), which you must collect unless your online marketplace (e.g. eBay, Amazon, Etsy, etc.) is already collecting it. Current procedures for goods valued over £135 remain the same.

To prevent your UK shipments from being delayed, held, or returned by UK Customs in 2021, please consider the following steps:

1. Register for a VAT number with the UK: https://www.gov.uk/vat-registration
2. Collect VAT at the time of purchase.
3. Make quarterly VAT return payments to the UK.

In addition, you should include your VAT number on your customs declarations.
This process will vary depending on your shipping software, so be on the
lookout for instructions early next year.

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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Our Top Tips for Business Startups – A Focus to Grow Faster

Medallion Fulfillment & Logistics a Fulfillment Warehouse

The first months of a business startup are exciting, but it can also be a time full of impatience. You’ve nurtured your fledgling company from a glimmer of an idea to a fully realized business, and you’re ready to take the world by storm.

That same passion that’s fueled your concept until now can help you grow faster as long as you stay focused. Our fulfillment company has been part of many successful startups, so we’re sharing some tips we’ve learned along the way.

Always Play to Win

Top sports coaches will tell you there’s a difference between playing to win and playing not to lose. Belief in yourself allows you to work from a position of strength rather than a timid, defensive attitude. Always bet on yourself to win.

Stay Flexible

Commitment to your business is vital, but as John Lennon once said, life is what happens when you’re busy making other plans. Many elements are out of your control, so you should remain ready to pivot in order to skirt roadblocks or take advantage of new opportunities.

Prioritize Customer Service

No matter what the product or service, the goal of every company is to satisfy customers. That’s particularly important today, when bad word-of-mouth spreads like wildfire via social media. Think of your customers as real flesh-and-blood people rather than faceless orders and put their needs first.

Keep Learning

In the early days, startup entrepreneurs are often forced to wear many hats out of sheer necessity. Fortunately, there are a number of helpful solutions available from inexpensive online courses to high-tech digital tools. Learning pays extra dividends in the future when you can effectively communicate with experts you hire for those roles.

Take Advantage of Free Advice

There’s an old saying that free advice is worth the price. But there is actually a wide range of groups and forums where you can network with others who have gone before you. Not only will you pick up valuable nuggets of knowledge, you’ll have the opportunity to form professional relationships that prove mutually beneficial.

Avoid Debt

We’ve all heard the dramatic stories of artists and entrepreneurs who maxed out their credit cards (and sometimes those of others as well) to finance their project or company. In most cases, that business model ends up draining your cash flow through costly interest charges. Get in the habit of paying cash whenever possible.

Maintain a Budget

Both personally and professionally, many people make the mistake of increasing spending as income goes up. While you may be tempted to do the same once orders start rolling in, your business will be better served if you continue to operate as though you’re on a shoestring.

Fulfillment Warehouse Services That Grow Along with Your Business

When you start a new business, you should be concentrating on gaining sales, not processing them. Medallion Fulfillment & Warehouse Logistics offers comprehensive fulfillment warehouse services that scale to fit your growing needs. Contact us for more information.

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Building an E-newsletter List? Make Sure You Are CAN-SPAM Compliant

Learn More About Medallion Fulfillment

Have you ever felt burned by getting a piece of mail from your bank, cable company or insurer whose envelope blared “Important Account Information Enclosed”? You know the outcome: You opened the envelope, that “important information” turned out to be an ad.

Translate that print tactic into untold millions of e-newsletters in distribution, and you will understand why the CAN-SPAM business compliance guide was created.

Email a Powerful Attraction Tactic

Even in an age of Facebook “likes” and Twitter “tweets,” email and e-newsletters — when handled right — continue to be a robust tool for marketers.

  • According to 2011 statistics published by Exact Target, 42 percent of subscribers are more likely to purchase from a company whose emails they subscribe to.
  • The other side of that coin? Content Marketing Institute notes that the e-newsletter open rate can go as low as 8 percent, with monthly newsletters averaging in the low-20 range.

So the audience making up your e-newsletter lists needs to be one you screen carefully — those on your list should be the people most likely to find your information valuable enough to subscribe and to read at least occasionally with few opt-outs. If you use purchased e-newsletter lists, ensure they are from reputable sources consisting only of “opt in” subscribers.

Keeping Out of Trouble

Once you’ve identified an audience to invite as subscribers, you must establish an acceptable template for your message. Just a few false moves, and your carefully crafted e-newsletter could end up in the spam folder.

CAN-SPAM (Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003) establishes standards for commercial email, including e-newsletters. It spells out what you can and cannot say, and sets penalties for violations.

Under the CAN-SPAM rules, for example, you are required to:

  • Identify the nature of your message as an e-newsletter.
  • Tell recipients where you are located. Your e-newsletter must include both an email return address and a valid physical postal address.
  • Tell recipients how they can opt-out of your e-newsletter, and honor their request within 10 business days.

Conversely, the CAN-SPAM law prohibits:

  • False or misleading header information. In other words, the “To,” “From” and “Reply to” headers must accurately identify the person or company initiating the email.
  • Deceptive subject lines. No false promises, “gotcha” wording or other text that doesn’t reflect on the actual content of the e-newsletter.
  • Sending through an open relay or using harvested email address (both examples of technology that allows spammers to find and use lists).

And of course, the CAN-SPAM act requires you to truthfully describe any products or services you are offering for sale in your e-newsletter — and if you are positioning this information as an ad, you must identify it as such.

How to Attract More Subscribers

Subscribers can quickly become un-subscribers, so identifying and attracting new audiences is an important part of your e-newsletter strategy.

How can you encourage people to opt-in?

  • Promote your e-newsletter on your website’s homepage. Keep a colorful sign-up icon near the top of the screen, as you can never rely on visitors scrolling all the way down.
  • Invite new customers to subscribe. If someone makes a purchase through your website, follow it up with an email invitation to the newsletter. You can use the same tactic with visitors who leave contact information on your landing page.
  • Include a “send to a friend” link on every e-newsletter to encourage forwards from subscribers.
  • Promote your e-newsletter on your social media pages; include sneak-peeks of articles or offers that subscribers will find in the newsletter.
  • Offer a free gift to new subscribers. It can be a special deal or item associated with your business, or something general, such as a drawing for an iPad. (However, all giveaways and drawings must be “no purchase necessary” in nature and something anyone may enter.)

Test and Test Again

The way you handle your e-newsletter lists may change once you see how many people opt-in and opt-out of their subscriptions. As with most forms of web marketing, e-newsletters can benefit from testing and measuring results to create the ideal marketing tool for you.