What to Know About Low Average Order Value eCommerce

Improved Average Order Value (AOV) with 3PL Services

Understanding and Optimizing Low Average Order Value E-Commerce

Running an e-commerce business involves keeping track of various key performance indicators such as average order value (AOV). AOV refers to the revenue you generate per sale during a certain period. Low AOV means that your customers are spending less per order.

Having a low AOV presents various challenges including less profit per sale, dependency on volume, and slow business growth. However, there are instances where a low AOV e-commerce model makes sense, depending on your industry. Also, there are effective strategies to maximize your online business’s AOV.

Importance of AOV as an E-Commerce Metric

AOV influences how you approach marketing, pricing, and promotions. You can use AOV to gauge the health of your e-commerce business and optimize to realize better returns from every sale.

Overall, it can help your marketing team evaluate the efficacy of specific strategies. For instance, a low AOV gives you an opportunity to try out different marketing tactics. In this case, you can leverage upselling and product bundling and optimize accordingly based on results.

Ways to Increase Your Average Order Value

One of the best ways to encourage customers to spend more is through upselling and cross selling via timely promotions, offers, and product bundles. For instance, you can offer marginal or bulk discounts to move inventory faster. You can also provide coupons and deals based on minimum spend thresholds.

Present additional purchase options like related, newly added, and popular products. Also, place high-value products in front of your visitors more. Loyalty programs that incentivize return customers also work wonders.

Offering a personalized customer experience is also important. Leverage user data to recommend products based on individual customers preferences and purchase history. You can also conduct personalized email campaigns to pique customer interest.

Optimizing your e-commerce site can also increase AOV. A responsive and intuitive website increases purchases from first-time and return visitors.

Ensure your website is easy to navigate with filtering options and optimized product pages. You should also streamline your checkout process. Checkout difficulties often lead to fewer purchases and cart abandonment.

Another effective way to maximize AOV is by streamlining your fulfillment process. It’s crucial to partner with a competent fulfillment company to support increased sales volume. After all, scaling is a major challenge for low AOV e-commerce setups. A fulfillment company can help you handle aspects like product storage, shipping, tracking, and prompt delivery.

Conclusion

It’s important to understand how AOV affects your e-commerce business. Implementing strategies to improve this metric can help ramp up overall revenue. Proper product promotion, pricing strategies, and optimized user experiences help you get more out of each order.

An important step toward e-commerce success is hiring a reputable fulfillment company to support your venture. Medallion Fulfillment and Logistics offers tailored solutions based on business goals and requirements.

Our services can help you improve AOV, save operational costs, and scale comfortably. Contact us today to unlock your e-commerce business’s full profitability potential.

June 3, 2024June 3, 2024

Stewardship and Long-Term Commitment: The Foundation of Family Businesses

In a world that increasingly prioritizes quick wins and instant gratification, family-owned businesses like Medallion Fulfillment & Logistics stand as beacons of long-term commitment and stewardship. From our humble beginnings in a garage to owning warehouses on both the East and West coasts, our story is a testament to what can be accomplished with a focus on the future.

The Focus is On Small Businesses

Family businesses have a unique advantage in that they can prioritize long-term success over short-term gains. This is not just a strategy but a philosophy that is woven into the very fabric of how they operate. For us at Medallion Fulfillment, this has meant making investments that may not pay off immediately but promise substantial benefits for our clients in the long term. A prime example of this is our decision to purchase an East coast warehouse to supplement our West coast operations. This move was driven by a vision to provide more efficient and timely shipping solutions for our clients, positioning us as a pivotal fulfillment warehouse and fulfillment company for startups, small businesses, and medium-sized enterprises.

The benefits of working with a family business like ours are echoed in the experiences of our clients. One such testimonial highlights the value we bring to our partners:

“Medallion Fulfillment & Logistics is a great 3PL partner for small businesses and start-ups! Their warehouses on both coasts help us more effectively deliver to our customers with timely shipping. Being a family-owned and operated company, they get our needs as a new business, and have helped us every step of the way on the logistics and operations end of things. We trust them with our products and managing the customer unboxing experience. Highly recommend!”

This feedback not only underscores our commitment to our clients but also our understanding of the unique challenges and opportunities they face. It’s a reflection of our approach to business – one that values relationships, quality service, and a vision for success that extends beyond the next quarter.

Family Owned and Small Business Fulfillment Partner

Family businesses like Medallion Fulfillment & Logistics demonstrate that with stewardship and long-term commitment, it’s possible to build lasting legacies that support our clients’ growth and success. We’re proud to offer a partnership that goes beyond simple transactions, providing a foundation for our clients to thrive in an ever-changing marketplace. Visit us at https://www.medallionenterprises.com to learn more about how our family business can support yours.

May 27, 2024May 13, 2024

Throw Out Your Marketing Plan and Try These Tips

Warehouse Fulfillment Company Workers Planning for the Day.

Is your marketing plan not producing the results you’re looking for? Instead of doing the same thing over and over but expecting a different outcome, why not try something new? Our Plainfield RI fulfillment experts share these surprisingly easy yet effective tips for jump-starting your marketing plan.

1. Be transparent.

If you promise nothing but blue sky yet rain falls on your customers, they’re going to head for dry land. A serious disconnect between what’s on your website and the actual buying experience will turn customers into one-and-done. Carefully review the content on your website to make sure it’s consistent with your brand and you’re not overreaching with your commitments.

2. Promote a sense of trust.

Inc. Magazine says that a staggering 84 percent of consumers place equal trust in online reviews and personal recommendations.

*Post genuine testimonials in appropriate spots on your website. Creating false reviews is an absolute no-no and will quickly backfire.

*Post logos of membership in professional associations and other “trust signals” indicating your reliability.

3. Create urgency.

No one likes to feel like they missed out. Leverage free shipping, bonus gifts, and other perks by running them for a limited time. You can also offer opt-in enticements, such as a 10 percent discount for joining your email list.

4. Keep it simple.

There’s such a thing as having too many choices. If your shoppers have to wade through too many options, it can result in paralysis by analysis that ends without a sale. Know your target market and provide a carefully curated selection of products organized in well-defined categories.

Your #1 Choice for Plainfield RI (Boston Region) Fulfillment Services

We offer a full assortment of Plainfield RI fulfillment services, ranging from assembly and packaging to website design and hosting. Contact Medallion Fulfillment & Logistics to learn more.

May 20, 2024May 13, 2024

Highlights of Fulfillment Program for Small Business

Owning a small business is thrilling, but it also comes with its fair share of challenges, especially when it comes to handling logistics and order fulfillment. That’s where our fulfillment services shine, offering a seamless solution to your fulfillment needs. Let’s dive into what makes our program a game-changer for startups, especially for those looking to make a mark in the bustling L.A. fulfillment scene.

Ease of Budgeting and Cost Management

One of the standout benefits of our fulfillment program is its straightforward fee structure. Here’s what you get:

Comprehensive Service Package: From account setup, order processing, and credit card processing to customer service, shipping, warehousing, and handling returns, we’ve got you covered—all from choices you make with us at set up.

Flexibility and Scalability

As your business grows, your needs change. Our program is designed to accommodate that growth:

Two Warehouses: Choose between product storage and shipping from our East Coast warehouse or our West Coast warehouse or both.

Tailored for L.A. Fulfillment Needs: Whether you’re launching a new product line selling products on Etsy or eBay, our services are designed to meet the unique demands of the L.A. market.

Full-Service Fulfillment Program at a Fraction of the Cost

The comprehensive nature of our programs means you get access to a suite of services that would typically cost much more if sourced individually:

Complete Order Processing: From the moment an order is placed to the time it’s delivered, we handle every step.
Dedicated Customer Service: Our team becomes an extension of yours, providing top-notch customer service to your clients.
Streamlined Returns Management: Returns are an inevitable part of e-commerce, but we make the process as painless as possible for both you and your customers.

Your Partner in Growth

Choosing our Fulfillment Program not only helps you manage costs and scale efficiently but also allows you to focus on what you do best: growing your business. With our expertise, especially in the competitive L.A. fulfillment landscape, you’re well-equipped to meet your logistics and customer service needs without the usual headaches.

Ready to Take the Next Step?

Our program is designed with your success in mind. From cost-effective pricing to comprehensive service coverage, we provide the support you need to thrive in today’s market. If you’re looking to simplify your fulfillment process and scale your business with confidence, we’re here to help.

Contact Us for a free consultation and learn more about how our Fulfillment Program can support your business’s growth and success.

May 15, 2024May 6, 2024

Top Tips for Building a Business Plan for an Online Clothing Store

Everyone wears clothing of one type or another, making it an attractive offering for an online store. That doesn’t mean you can partner with a fulfillment warehouse, then just sit back and watch the sales roll in. Use these helpful questions to craft a business plan that will establish your framework for success.

1. How viable is your business?

Clothing is a broad category with countless competitors in the field. Look for a niche, such as vintage clothing or children’s products, that will let you focus on a particular market.

2. Establish a mission.

What do you hope to accomplish with your clothing store? What sets your business apart from others? Your mission statement should tell people exactly who you are and what makes you different from your competitors.

3. Use a SWOT analysis.

SWOT is an acronym for “strengths, weaknesses, opportunities, and threats.” This analysis helps you determine what qualities you should emphasize and what measures you need to take to overcome the competition.

4. Determine your business structure.

Business laws set forth several different options, such as sole proprietorship or limited liability company (LLV), for operating a business. Each option has implications for liability, taxes, and other important factors. Consult an attorney to decide which choice is best for you.

5. Keep it simple.

Don’t fall into the trap of using lots of jargon, technical terms, and buzzwords to make your plan sound “intelligent.” Stick with simple, everyday language that can be easily understood by any potential reader.

Make Our Fulfillment Warehouse Part of Your Business Plan

We have extensive experience working alongside eCommerce retailers selling just about any type of product. Let us put our knowledge and capabilities to work for you. Contact us at Medallion Fulfillment & Logistics to learn more.