Tag: Fulfillment Warehouse

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Offer Free Shipping the Smart Way for the 2022 Holiday Season

Learn how to offer free shipping the smart way.

Today’s savvy consumers have come to expect free shipping as a perk of spending their money online. But as the retailer on the other side of that equation, it may sound not so great. Turn free shipping for customers from your fulfillment warehouse into a win-win proposition this holiday season with these helpful tips.

How to Offer Free Shipping the Smart Way

Shopkick is a shopping app company that partners with major retailers such as Target, Old Navy and Disney Stores. According to their survey of holiday shoppers, free shipping was the top benefit expected by 94 percent of respondents.

So, the question is not if you’ll offer free shipping, but how. You can resign yourself to accepting it as the cost of doing business, or you can use these creative suggestions from experts to offer free shipping without sacrificing your profit margins.

1. Build shipping costs into the sticker price.
This is the easiest and most common way to cover free shipping. When you factor the costs into the sale price of your products, the difference is negligible and greatly outweighed by the perceived benefit of free shipping.

2. Optimize packaging.
When is the last time you reviewed your packaging standards? Elements like oversized boxes and excessive filler can unnecessarily drive up your shipping costs. Proper packaging keeps shipping expenses manageable while reducing your carbon footprint for additional savings.

3. Boost average order value.
If a customer can be enticed to increase the dollar value of their order, you realize a greater profit with only an incremental change in shipping costs. There are a few ways to accomplish this:
• An order includes multiple purchases of the same item
• Free shipping kicks in at a specific minimum order threshold
• Offer free shipping on a select number of items with higher profit margins

4. Tie free shipping to customer loyalty programs
Amazon Prime launched its growth to more than 200 million subscribers with the promise of free shipping. But you don’t have to confine this strategy strictly to paid membership services. You can simply offer free shipping as a perk for repeat customers.

5. Offer additional shipping options.
It is said that time is money, and for some people, that means they are willing to pay for it. Yes, most people are in a position to wait for standard shipping if it means getting it for free. Others are in more of a hurry, whether they have a pressing need or they’re just impatient. Expedited shipping options provide flexibility as well as another way to offset the costs of free shipping.

6. Offer event-based free shipping.
Instead of blanket free shipping, consider using strategic timing. Create a set schedule on certain days and times or run flash sales where you “randomly” announce free shipping for sales during a limited period of time. Both plans will build excitement in shoppers and encourage return visits to your site.

7. Partner with an experienced fulfillment warehouse.
Let’s face it. Selling is what you know and love. An experience fulfillment warehouse can offer advantages, such as good relationships with carriers, that keep shipping costs down while providing superior service to your customers. In the meantime, you’re free to work on building your business.

Medallion: a Fulfillment Warehouse for All Seasons
‘Tis the season of the most lucrative time of the year, but your business doesn’t end when the holidays do. Keep your eCommerce shop running on all cylinders 24/7. Contact us at Medallion Fulfillment & Logistics to learn more about our innovative, cost-effective solutions that can be customized to fit your particular needs.

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Ecommerce Store Owners’ Top Ten Challenges – How to Overcome Them and Succeed Online

Consider Medallion Fulfillment & Logistics for your Fulfillment Warehouse

With more consumers turning to online stores for their purchases, this is a great time to run an eCommerce business. However, online store owners face certain challenges that can make or break their business. From protecting consumer information online to finding better ways to fulfill orders, such as with help from a fulfillment company, these are some of the top challenges eCommerce store owners face.

1. Building Customer Loyalty
With so many online stores to choose from, having customer loyalty can be tough. Encourage customers to be loyal to your business through online interaction, loyalty programs with rewards, transparency, and content marketing. Taking these steps can help you engage with your customers and build a rapport with them.

2. Labor Shortages
Labor shortages have been making it harder for online stores to find staff to handle orders, customer service, and other aspects of keeping businesses up and running. Making improvements to your recruiting process and offering good benefits can help you find employees to help you with your online store.

3. Problems with Logistics
Global supply chain issues have led to logistics problems for online stores, especially when it comes to tracking inventory. Hiring a reputable fulfillment company can help your eCommerce business keep track of products that are in stock, so that you’ll know when it’s time for you to restock.

4. Lack of In-Person Contact Before Purchasing
Customers aren’t able to examine products physically before buying them when they purchase goods online. This can cause some customers to avoid shopping online. ECommerce store owners can make use of newer technology, such as virtual realty or augmented reality to make up the inability to physically try on or feel or hold merchandise.

5. Low Conversion Rates
Conversion rates can be a problem for online store owners, especially for those who are just getting started. Focusing on driving conversion through search engine optimization, calls-to-action, and the targeted messaging can help you increase your online store’s conversion rates.

6. Fraudulent Transactions
Fraud can easily happen in online stores when secure payment methods aren’t being used. This can lead to financial and legal problems while also discouraging customers from doing business with your eCommerce store. Watch for signs of suspicious activity with customer purchases, and use software solutions to make the payment process as secure as possible.

7. Customer Support
Although you can use chatbots for convenient customer support, many consumers would rather talk to customer service personnel on the phone, especially when dealing with complex issues. Offering phone support that allows customers to speak to someone can help improve customer support.

8. Customer Experience
Customers have raised their expectations in recent years when making online purchases. Ensuring that customers receive their orders promptly is crucial for your online business. A fulfillment company can provide you with peace of mind while also meeting the higher expectations that today’s customers have.

9. Cybersecurity Threats
Cybersecurity threats can put customer data at risk and harm your online business in other ways. To lower the risk of these threats, you should update your online store platform on a regular basis, back up data routinely, and use security solutions.

10. Product Returns
Online stores have a higher risk of fraud or other issues when it comes to product returns. Having clear return and refund policies can help lower this risk. Giving customers different options for returns or refunds or offering coupons for those who aren’t satisfied with their purchase can help encourage customer loyalty.

Ready to Get a Price Quote for Our Services?
If you need a fulfillment company to help overcome challenges with your eCommerce business, please contact Medallion Fulfillment and Logistics today. We offer dependable, quality fulfillment services on both the East and West Coasts.

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It’s That Time of Year Again – Prepare for Increased Shipping Rates for the 2022 Holiday Season

The picture depicting the delivering of valuable asset using a trailer truck without protection

As the Holiday season grows ever closer, it’s time to start thinking about the impact of increased shipping costs. This is not the first-time shipping companies have increased prices for a holiday season and it certainly won’t be the last. The price increases for the past three holiday seasons by the United States Postal Service (USPS) have been to build financial sustainability for the USPS and is part of a 10-year plan.

On August 9th the USPS filed notice with the Postal Regulatory Commission (PRC) for their planned holiday price increases and it was approved later that day by the Governors of the Postal Service. This price increase is to go into effect October 2nd at 12AM Central time and will continue until January 22nd 2023.

These changes will increase shipping costs from anywhere between $.25 and $6.00 per package.

The planned price changes include:

Priority Mail and Priority Mail Express:

Commercial:
$0.75 increase for PM and PME Flat Rate Boxes and Envelopes.
$0.25 increase for Zones 1-4, 0-10 lbs.
$0.80 increase for Zones 5-9, 0-10 lbs.
$0.75 increase for Zones 1-4, 11-25 lbs.
$2.80 increase for Zones 5-9, 11-25 lbs.
$3.00 increase for Zones 1-4, 26-70 lbs.
$6.50 increase for Zones 5-9, 26-70 lbs.

Retail:
$0.95 increase for PM and PME Flat Rate Boxes and Envelopes.
$0.30 increase for Zones 1-4, 0-10 lbs.
$1.00 increase for Zones 5-9, 0-10 lbs.
$0.95 increase for Zones 1-4, 11-25 lbs.
$3.20 increase for Zones 5-9, 11-25 lbs.
$3.25 increase for Zones 1-4, 26-70 lbs.
$6.45 increase for Zones 5-9, 26-70 lbs.

First-Class Package Service, Parcel Select Ground, and USPS Retail Ground:

Commercial:
$0.25 increase for Zones 1-4, 0-10 lbs.
$0.40 increase for Zones 5-9, 0-10 lbs.
$0.75 increase for Zones 1-4, 11-25 lbs.
$1.60 increase for Zones 5-9, 11-25 lbs.
$3.00 increase for Zones 1-4, 26-70 lbs.
$5.50 increase for Zones 5-9, 26-70 lbs.

Retail:
$0.30 increase for Zones 1-4, 0-10 lbs.
$0.60 increase for Zones 5-9, 0-10 lbs.
$0.95 increase for Zones 1-4, 11-25 lbs.
$2.70 increase for Zones 5-9, 11-25 lbs.
$3.25 increase for Zones 1-4, 26-70 lbs.
$5.85 increase for Zones 5-9, 26-70 lbs.

The Competition

Just like in previous years we would expect to see USPS competitors such as FedEx and UPS increase their costs as well. We have checked and nothing is posted on their websites yet, but we would expect to see price increases posted in late September to early October.

Here’s what happened last year and was published on our blog last October.

Leave the Shipping Logistics to Us!

When it comes to high volume order fulfillment leave it to us. We have years or experience navigating the intricacies of fulfillment services. Medallion Fulfillment & Logistics has a service plan that fits your budget and takes the guesswork out of running your business. We take care of the logistical side of things so you can focus on selling your products and services.

Contact Medallion Fulfillment & Logistics today and get a free rate quote. Let us take care of you so you can take care of your customers.

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How Do I Know I Am Ready to Hire a Fulfillment Partner?

Young woman preparing boxes to ship

While you are getting your eCommerce business up and running, you are probably doing the bulk of the work yourself. Many online companies begin as cottage industries, operating out of a home or garage, such as Jeff Bezos famously did with Amazon.

Even if your eCommerce store does not reach Amazon’s sales levels, you are bound to reach a point where it is hard to keep up. How do you know when it is time to hire a fulfillment company? Ask yourself these questions to help guide your decision.

Are You Ready to Partner With a Fulfillment Company?

1. Are you running out of room?

As sales increase, you need more inventory to fill orders, along with more space to store that inventory. Unfortunately, science has yet to create a wall stretcher that will let you expand your current base of operations.

A fulfillment warehouse is designed to hold large quantities of product. As a plus, they have sophisticated inventory management software that provides efficient tracking and robust reporting.

2. Are you spending too much time running to UPS?

Whether you use USPS, UPS, or FedEx, you are bound to their policies and rates. Few things are more frustrating than scrambling to reach the post office just as they are locking the doors.

If you use a fulfillment service, you can say good-bye to that headache. Not only do they have daily pickups scheduled with all major carriers, but they can accommodate LTL (less than a truckload) shipments and you can benefit from their lower contracted rates. A fulfillment warehouse will also free you up from the task of following up on shipping problems.

3. Are you having a hard time finding labor?

We have all heard about the Great Resignation, with a significant number of people leaving the workforce due to a shift in priorities following the COVID shutdown. For this and other reasons, many employers are having difficulties finding and retaining qualified labor.

With a fulfillment company, you have the advantage of a full staff but pay based on your business alone. You no longer have the responsibility of recruiting, hiring, and managing employees, nor do you have to cover insurance and other labor-related expenses.

4. Can your infrastructure scale along with your business?

As your business grows, you will still find ebbs and flows along the way. The classic example is holiday sales, but there are many other situations that can cause fluctuations. For example, perhaps you sell scarves, bathing suits or other seasonal items.

A fulfillment company focuses on inventory management and order fulfillment. They are experts at these services, so they can navigate the process of scaling as needed to suit your business.

5. Are you expanding to other geographic areas?

Expanding your geographic reach is a natural progression. But with customers expecting two-day, next-day or even same-day delivery, it is crucial to have your product physically located nearby. If you are getting nervous at the thought of opening multiple facilities, a fulfillment warehouse can solve that problem.

6. Do you have time to run your business?

Increasing sales should be job #1. If fulfillment and logistics is taking time away from building your brand, coming up with new products and other sales-related projects, it’s time to take on a fulfillment partner.

Your #1 Choice for a Quality Fulfillment Company

At Medallion Fulfillment & Logistics, we truly consider ourselves a partner in your success. With more than 35 years of experience and facilities on both coasts, Medallion offers a full range of fulfillment services that are flexible enough to scale along with your business.

Contact us to learn more about our innovative Amazon replenishment warehousing service and other programs.

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Finding the Value in Your Fulfillment Partner – Does Yours Measure Up?

Young woman comparing with two things.

With the school year over and summer in full swing, this is a perfect time to ask yourself: what grade would you give the performance of your fulfillment warehouse? Do they get a passing grade or below average? Use this scorecard to determine whether your fulfillment partner is making the grade or flunking out.

Pass or Fail: Performance Metrics

No matter what you sell, from accordions to zippers, your customers have many sources to choose from. Elite customer service is what will set you apart from the competition. Your fulfillment partner has a responsibility to uphold the commitments you make to customers regarding delivery time, presentation, accuracy, and other measurable factors.

Service level agreements, or SLAs, are a standard way to document what you expect from your fulfillment partner.

Use these metrics to answer key questions such as:

* Are same-day, next-day and two-day delivery windows met consistently?

* Are you processing a high number of returns because of damages or product quality?

* Are customers receiving the correct items in the correct quantities?

* Is inventory updated at least once a day? Are discrepancies addressed promptly?

Pass or Fail: Open Channels of Communication

We all know (and have experienced) the horror stories of being stuck in voicemail limbo when contacting a company’s customer service department. But when it comes to your fulfillment warehouse, you are more than simply a customer. You are partners, with both of you invested in the same goals. If you have concerns about your fulfillment partner’s performance, do you get passed off to an account executive? Even worse, do they simply ignore you?

A dependable fulfillment partner will offer full transparency in their business relationships. If you do not have access to contact their leadership team for open and honest discussions, that is a red flag. But keep in mind that just talking to leadership is not enough. They should also be responsive to your concerns and create acceptable solutions in a timely manner.

Pass or Fail: Up-to-Date Technology

In the fast-paced world of e-commerce, you cannot afford to be left behind due to outdated technology. A web-based portal allows you to access your information 24/7 without the need to contact your fulfillment warehouse. Make sure they use encryption or other appropriate measures for data security.

Even the most sophisticated technology is bound to hit a snag now and then. Ask about support protocols and whether upgrades are performed on a regular basis.

Pass or Fail: Initiative-taking Improvements

Do you sit back and let your e-commerce business roll along, content with the status quo? Of course not, and neither should your fulfillment warehouse. A good partner understands that improvements benefit both of you. Ideally, they are constantly seeking out ways to boost productivity and decrease costs. If your fulfillment warehouse is not presenting you with ideas to improve efficiency, that is a sign they are not as committed to your success as they should be.

We are glad to offer a free review of your service with us for recommendations or review your current fulfillment provider and let you know what we can do better. Just ask us!

Pass or Fail: Safety Precautions

Accidents and disasters can result in problems ranging from returns of damaged products to complete loss of inventory. What measures does your fulfillment partner implement for protection from fire or theft? At minimum, they should have a 360-degree monitoring system with no dead ends.

Safety does not stop with the products themselves. A high rate of workplace injuries can seriously compromise productivity. The warehouse should have an efficient layout and the company should have an established set of protocols to enhance employee safety.

Medallion Fulfillment and Logistics is a Fulfillment Warehouse that Scores High on the Satisfaction Scale

Find out why clients from coast-to-coast have chosen Medallion Fulfillment & Logistics to be their partner in success. Contact us to learn more about how our services can enhance your business and why we are the fulfillment warehouse choice for a wide variety of businesses around the nation.