Website Chatbots: What to Know to Embrace This Emerging Technology

Fulfilment Warehouse

In the United States, more than 50 percent of millennials and Gen Xers have interacted with chatbots, making these conversational programs one of today’s hottest eCommerce trends. But in reality, Siri’s and Alexa’s “parents,” Eliza and Parry, actually date back to the mid-60s and early 70s.

Simulated human conversation may not be new, but thanks to modern advancements in technology, these programs can now be integral parts of your marketing and branding strategies. Our fulfillment warehouse experts share what you need to know to successfully incorporate website chatbots in 2019.

Chatbots: Personalizing the Online Experience

Real-time interaction is a major advantage brick-and-mortar stores still have over virtual storefronts. Nearly one-third of online shoppers cite difficulty in getting answers to simple questions as their biggest frustration with eCommerce.

Chatbots are uniquely equipped to handle common customer service inquiries. Once you import your company’s FAQs, chat history and other relevant information, a chatbot uses the data to “train” itself. As the chatbot interacts with visitors to your website, the experiences serve to further refine its performance.

Need more reasons why you should be using chatbots?

• More than 50 percent of the participants in a Facebook survey said they’re more likely to shop with a business that provides chat services.

• Global research and advisory firm Gartner predicts that by 2020, 85 percent of engagement with eCommerce sites will be conducted via self-service options and chatbots.

• Surveys by Oracle, one of the leading multinational computer technology companies, indicate 80 percent of businesses currently use chatbots or are making plans to by 2020.

Value Add-On for Improving Productivity

Customer service is a natural application for chatbots, but their usefulness doesn’t end there. In addition to providing information, chatbots have the ability to gather data more fluidly than human agents.

• Chatbots can be programmed to ask targeted questions in order to qualify potential leads.

• Hard-to-navigate websites are another top source of frustration for online customers. Chatbots direct shoppers to the proper area of your website simply by asking what they’re looking for and posing other leading questions.

• Use of chatbots frees your staff to work on more urgent tasks, reducing operational costs while maximizing effectiveness. Chatbots are also available 24/7 without being subject to down time or attrition.

Chatbot Guidelines

1. No matter how sophisticated a chatbot program may be it’s meant to supplement human interaction, not replace it. Proper use of chatbots includes programming them to “know” when a customer should be directed to a human customer service agent.

2. While consistency is one of the advantages of chatbots, the programs are not one-size-fits-all. Chatbots are designed to be fit the needs of a specific industry, so a chatbot used by a healthcare organization will not be the same one you would want for your eCommerce business.

3. Start simple. Create a chatbot to handle basic customer requests that form the bulk of your customers’ interactions. Once the chatbot has been operational for a while, review the chat logs to detect patterns and trends, and then decide if you want to add further refinements or develop new chatbots to handle other tasks.

4. Don’t reinvent the wheel. Think of chatbots as a way to streamline basic business interactions, not add complicated and unnecessary bells and whistles.

Personalized Fulfillment Warehouse Services for a High-Tech World

Are you tired of fulfillment warehouse companies that treat you like nothing more than a number? At Medallion Fulfillment & Logistics, we consider ourselves a partner in your success, so your specific needs are our first priority.

Contact us to learn more about our cost-effective, flexible and scalable fulfillment warehouse services.

Three Reasons to Find a New Fulfillment Partner After the Holidays

Fulfillment Warehouse Picking Packages

How did your business do this holiday season? Hopefully it was prosperous and efficient, but maybe it could have been better. The busiest time of year can be illuminating and leaves some businesses shopping for a new fulfillment partner.

If you were feeling a little overwhelmed through the holidays, take heart – the New Year is here. It’s time to review performance and improve your operations.

Inhouse to Outhouse

You’ve been shipping your own orders and now it’s time for a change. The holiday season was hectic and it would be more efficient to have a fulfillment partner. Just think – next year you could concentrate on your customers and promotions while someone you trust handles your merchandise accurately, quickly, worry-free.

How Medallion Fulfillment & Logistics and Sprocket Express Can Help: When you decide to outsource fulfillment, there are a lot of details to consider. We are great at helping a small business outsource smoothly.

Gotta Get Outta Here

You care about your customers deeply. When they want something, you want to accommodate them so they stay happy. But not every fulfillment business is capable of delivering accurate and trustworthy service in keeping with the image you want to portray. The last hands on your product is the warehouse and you don’t want any complaint about shipping packaging or accuracy. You can avoid bad reviews with a reliable fulfillment partner.

Mistakes not only cost money and time, but they damage customer trust. Medallion and Sprocket Express have a 99.99%+ accuracy rate and exceptional customer service personnel. Plus, our fees are among the lowest in the industry. Learn more about our fulfillment services.

Becoming a Free Agent

Some fulfillment companies require contracts with their clients. When the contract period ends, it’s time to evaluate your options. Not every 3PL is a good fit for every client and it’s ok to shop around. If you are considering switching to a new fulfillment provider, take a look at our tips for a successful transition.

Our award winning service requires no contract and we have excellent references. Our accuracy is documented at over 99.9%. Tell us more about your fulfillment wish list and let’s talk about how we can partner to help you succeed!

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.

Subscription Box Services Lead the Way in DTC Brands

Subscription Boxes Work to Build Your Business

Over 25% of consumers are signed up for subscription box services. The industry now contains over 3,500 established box services worth roughly $10 billion. And, according to MultiChannelMerchant, 75% of DTC (direct to consumer) brands will offer subscription services by 2023. As this model becomes more popular, many brands are wondering if they should ride this wave with their own subscription boxes or supply their products to mixed or mystery boxes to attract new customers. At the same time, fulfillment partners need to tone up their skills and highlight their capabilities in this area to attract and retain more clients.

Subscription boxes are beneficial to everyone, which is one of the reasons they have become so popular across the board. Here are some of the benefits.

Consumers

  • Save money
  • Try new products

The benefits to consumers are simple. Not only can they avoid running out of products that they use regularly and count on, they also save money on these products. Plus, they can discover new products in the samples included in the boxes. Sometimes the boxes are random selections, while other boxes are selected entirely by the consumer. Each has its own benefits. In a previous post, we explored some of the popular subscription box options.

Brands

  • Better order forecasting
  • Enhance customer loyalty
  • Improve bottom line

Order Forecasting
One of the challenges of retail in general is the predictability of order flow. Some brands experience a very regular pattern throughout the year, with peak season activity predictably raising revenue. But most brands struggle to anticipate the order volume. Forecasting isn’t easy, especially when it’s about the future.

The subscription box model helps regulate this flow by grouping orders and standardizing the activity among subscribed customers. Although some will cancel their subscriptions, the overall pattern will be more regular than businesses without subscription options, evening out cash flow and helping predict revenues month over month.

Back in the dark early days of e-commerce, a business would need to manually create reorder logic to ship to a customer each month. Today there are numerous services that provide this capability within existing e-commerce platforms, communicating with fulfillment partners as well as the customer and fully automating the process.

Customer Engagement and Loyalty

Subscribing is an act of loyalty. This model helps build a relationship between the customer and the brand. The consumer is more likely to purchase from the business that they deal with so regularly and the business has an easier time creating engagement for promotions or new items and cross-selling.

Building this level of trust paves the way for potential up-sells. Familiarity breeds customer loyalty in this case. And it’s worth noting that many of these brands would not have encountered or attracted the customers without the exposure to product trial that subscription boxes create.

Bottom Line Benefits

But subscription boxes can also save the brand money. By regulating order flow, there is more predictability in inventory, which prompts a leaner supply chain and reduces carrying costs. At the same time, the brand gains new customers and a more predictable order flow.

Fulfillment Services

  • Better forecasting
  • Fill niche services

Similarly, a fulfillment service that processes subscription boxes may be able to move inventory through more quickly, cutting down on stagnant inventory. Storage costs are rarely a significant source of revenue for a fulfillment house, but they can impact the brand’s bottom line. By filling orders and utilizing inventory in a more efficient manner, a brand can achieve JIT inventory (just-in-time inventory) and smooth the supply chain so there are less stuck-in-storage costs. This is good for everyone.

Shipping large volume for a client once per month helps a 3PL better predict staffing needs. 3PLs are accustomed to ramping up staff for peak holiday seasons, but when a client has a very successful sales promotion without warning, this can create a strain on the fulfillment operation. Again, subscription boxes help regulate this flow and make the peaks more predictable. Not only does the fulfillment partner benefit from more regular peak order volumes, but this improves efficiency which impacts the 3PL’s bottom line.

Much like the brands themselves, fulfillment partners can forecast revenue more easily with the more regulated pattern lent by subscriptions.

Fulfillment services who are adept at serving the subscription box market are prepared to handle the relevant logistics. These companies have worked out the kinks and are set up to provide service to this niche, which is growing rapidly. This expertise helps them provide quality service to their clients across a variety of fulfillment scenarios.

Conclusion

The subscription box model works well for all parties in the transaction.

  • Predictability (of delivery, order flow, revenue)
  • Efficiency
  • Relationships
  • Saves money (retail prices, inventory, supply chain, preparation)

If your business is not involved in subscription service, this may be a good time to research your options. Almost every brand has a product that fits in one or more of these boxes.

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

International Fulfillment – How to Reach More Customers Worldwide

Man in a warehouse smiling by boxes ready to ship out.

Cross-Border eCommerce

The world of eCommerce knows no boundaries. Consumers in the US want access to foreign products without currency conversions and lengthy shipping times. Outside of the US, consumers want American products without surprises and delays. As a business owner, you want to reach a larger market with ease. Your fulfillment partner plays a big part in making international eCommerce sales flow smoothly.

Cross-border online consumer purchasing is increasing 25-30% a year and is projected to reach $1 trillion this past year, according to market statistics. These sales account for over 17% of all eCommerce sales worldwide.

How Fulfillment Can Help

Navigating the intricacies of cross-border commerce is no easy feat. It takes a lot of time and research to understand how to facilitate a smooth purchase and shipping process. There are different carriers, documents, regulations, and certifications to consider. The most important part is the keep the customer happy and increase your sales. To save time and money, choose a fulfillment partner with experience in these areas.

Services to Look for in Your Provider:

• Customs documentation
• Drop shipping
• Freight consolidation
• Overseas carrier relationships
• Multiple warehouse locations

If you are already selling on Amazon, you can easily expand to their Canadian and Mexican platforms, as well as other countries. You may need to upload documents or approvals, depending on your product category.

If you are using FBA, Amazon will fulfill and ship the orders. But if you are fulfilling orders in house, you will need to tackle the process yourself. If you are new to international shipping, this can be a big project that takes time from your marketing and growth efforts.

Global Seller Benefits

Whether selling in small quantity to consumers outside of the US, distributing overseas, or sending products the US for sale to American consumers, this is a prime opportunity to work with a 3PL. A strong global fulfillment house offers experience in both B2C and B2B international eCommerce situations. These partners truly offer multi channel support. No boundaries.

International Seller Benefits

• Reach US customers quickly
• Avoid customs holdups
• Compete with US sellers
• Freight consolidation

US Seller Benefits

• Reach international customers efficiently
• Offer smooth customs process
• Understand export sales factors
• Expand your market reach

Multiple warehouses are not appropriate for every business. Maintaining more than one inventory location can be too much for many businesses as this tends to increase the cost of the service and divides your inventory. Without a large volume and solid historical stats to decide how to break up the inventory, it can actually hurt a business to spread out inventory at this level.

Companies with large volume, fewer SKUs, or a wide and even geographical reach will benefit from multiple locations. This is a big consideration when choosing a fulfillment partner. Medallion has two warehouse locations one on the West Coast and one on the East Coast. Use our two locations to grow your business.

Businesses that prefer one location can still achieve worldwide distribution. The key is experience. Medallion Fulfillment & Logistics and Sprocket Express can help any business create a seamless process to overseas shipping. By increasing your market reach, you can grow exponentially as you create brand awareness in new locations and in new markets.

Medallion and Sprocket Express Have the Experience You Need

An experienced 3PLs like Medallion and Sprocket Express can help you immensely when shipping overseas. Greg Kent, our President, is well-versed in using fulfillment systems reaching a global market. He can help international sellers with US eCommerce, as well as help US companies sell better abroad.

All of our clients benefit from our custom-built portal that offers real-time inventory and shipping information. Businesses and customers alike receive tracking information directly and immediately. We can provide same day shipping across a variety of carriers. Talk to us about international shipping and see if we can help you expand your geographic reach.

Beyond Amazon, the Power of E-commerce Marketplace Diversification

Fulfillment Warehouse

Plenty of businesses use Amazon as their primary online marketplace. But many observe the old adage and don’t put all of their eggs in one basket. Diversification is a successful e-commerce strategy that allows your business to reach more customers in more places.

Our clients use a variety of marketplaces to expand their businesses. These are some of our favorites. Sprocket Express and Medallion Fulfillment integrate with all of these markets quickly and efficiently so that you can ship all of your orders using one easy fulfillment interface.

eBay

This year marks eBay’s 25th anniversary as an online marketplace. It was one of the first and continues to function as a major selling platform. Although Amazon has risen to number one with roughly three times the annual gross merchandise volume (GMV), eBay is still the second leading marketplace in the U.S.

Similar to Amazon, an e-commerce eBay “shop” allows retailers a single branded storefront for all of their listings. Whether used in conjunction with a brand website or as the primary online presence, the eBay shop is a powerful selling tool.

Sprocket and Medallion Fulfillment are fluent in multiple e-commerce marketplaces and already integrates with eBay for a seamless experience, allowing multi-channel merchants to focus on their products and leave the marketplace protocols to us.

Walmart.com

Walmart is the third largest e-commerce marketplace in the United States and represents serious competition to Amazon. Approximately 95% of Americans have shopped at Walmart or Walmart.com in the past year, so this is a massive audience and it continues to grow.

It is easy to start selling on Walmart with these seven steps. Marketplace items appear in search results on Walmart.com alongside other items.

Shopify

Shopify is an e-commerce platform designed to allow clients to easily build a website with a shopping cart solution. As one of the most popular e-commerce cart packages, this software option is a powerful online selling tool.

For businesses who prefer to sell mainly on their own websites, Shopify is an ideal choice. You can also use the platform to build your own marketplace for your brand. Look for a fulfillment service like Sprocket Express a division of  Medallion Fulfillment, which is already integrated and ready to connect to your site in fifteen minutes.

Rakuten.com Shopping

Buy.com (recently named Rakuten.com Shopping) is one of the largest online retail marketplaces with over 20 million customers in the U.S. On this platform, e-commerce sellers can create their own fully branded “storefront” to maintain cohesive brand identity.

As an added bonus, Rakuten clients have access to an e-commerce consultant to advise sellers on ways to expand exposure and increase sales. Customers of the marketplace also earn cash back, which promotes loyalty to the platform and encourages repeat business.

Retail EDI

Companies that sell to wholesale customers to supply their retail stores often use Electronic Data Interchange (EDI) to transmit orders. This is the most efficient way to resupply because the system does all of the work behind the scenes and all the store has to do is enter the quantity of an item to trigger the order.

EDI is a powerful strategy for B2B sellers and can trim time and staff expenses, contributing to a healthier bottom-line and less error in the supply chain. Sprocket Express is equipped with full EDI capabilities to allow our wholesale clients to focus on expanding their businesses without devoting valuable time to processing large orders.

In Conclusion

Sprocket Express a division of Medallion Fulfillment is expressly designed to serve multichannel marketers and omnichannel sellers. With built-in integrations for numerous marketplaces, we are prepared to serve your business wherever and however you choose to sell.

We currently support multi-channel platforms for over 25% of our clients, so we can also coach on carrier selection, shipping method strategies and more, based on your unique business needs.