Tired of Surprise 3PL Provider Bills? Here’s a Better Way to Pay

Medallion Fulfillment Warehouse

Opening your monthly 3PL invoice shouldn’t feel like defusing a bomb. Yet for too many ecommerce brands, it does. You scan the line items, spot a charge you’ve never seen before, and suddenly you’re squinting at your screen wondering, “Wait—when did I agree to pay for that?”

If this sounds familiar, you’re not alone. Hidden fees are one of the sneakiest ways third-party logistics providers eat into your profits. And when you’re trying to scale a growing brand, those surprise charges can turn a good sales month into a stressful spreadsheet nightmare.

Here’s the good news: choosing the right ecommerce fulfillment service isn’t just about shipping speed. It’s about financial predictability—knowing exactly what you’ll pay, so you can forecast your margins with confidence. At Medallion Fulfillment & Logistics, we’ve built our reputation on that very idea. As a family business that started in the Kent family garage over 32 years ago, we believe in treating your business like our own: with trust, honesty, and total disclosure.

Let’s pull back the curtain on hidden 3PL fees—and show you a friendlier way to do fulfillment.

Unmasking the Hidden Fees Lurking in Your 3PL Invoice

Many 3PL providers advertise attractive base rates to get you in the door. Then the extras start piling up. It’s the logistics equivalent of buying a “budget” airline ticket, only to pay separately for your seat, your bag, and the privilege of breathing.

Here are some of the usual suspects:

  • SKU setup charges: Some providers bill you just to add each new product to their system. Got a growing catalog? That adds up fast.
  • Account maintenance fees: A recurring charge for… existing, apparently. You pay simply to keep your account active, whether you ship 10 orders or 10,000.
  • Complex pick/pack tiering: This is where things get really murky. Fees change based on confusing tiers, so a single extra item in an order can bump you into a pricier bracket without warning.
  • Receiving surcharges and long-term storage penalties: Send in a big shipment before the holidays? Expect a receiving fee. Product sits a little too long? Cue the storage penalty.

The real problem isn’t just the fees themselves—it’s when they hit. These costs tend to balloon during peak sales seasons, exactly when your order volume spikes. Instead of celebrating a record month, you’re watching your profit margins quietly erode, one mystery line item at a time.

The Medallion Approach: Transparent Pricing, Tailored to You

We take a different route. At Medallion, we don’t hand you a rigid, one-size-fits-all price list and hope you don’t read the fine print. Because honestly? There is no fine print.

Here’s what transparent ecommerce fulfillment looks like with us:

  • Every program is customized. Your business isn’t identical to the shop down the street, so why should your pricing be? We build each program around your specific order volume and product requirements. You won’t pay for bells and whistles you’ll never use.
  • Pay-as-you-go flexibility. You pay only for the space and services you actually use today. When you’re ready to grow tomorrow, we scale right alongside you—no awkward renegotiations, no penalties for getting bigger.
  • A full disclosure guarantee. No surprise add-ons. No sneaky surcharges. No “gotcha” moments when the invoice arrives. What we quote is what you pay, plain and simple.

The result? You can budget with confidence. When you know your fulfillment costs down to the dollar, forecasting your profit margins stops being a guessing game. That kind of predictability is what lets brands scale safely instead of white-knuckling every busy season.

How Bi-Coastal Warehousing Lowers Your Shipping Costs

Transparent pricing is only half the story. Where your inventory sits matters just as much as how you’re billed—and this is where a little geography goes a long way.

Medallion operates warehouses on both coasts: Los Angeles on the West and Boston on the East. Splitting your inventory between the two means your products start closer to more of your customers. And in shipping, distance is money.

Here’s why that matters:

  • Lower shipping zones. Carriers charge based on how many zones a package crosses. When your stock ships from the coast nearest your customer, you cross fewer zones and pay less per order.
  • Faster transit without premium prices. By positioning inventory strategically, you can hit 1-3 day delivery windows using affordable ground shipping. No need to shell out for pricey overnight rates just to keep customers happy.

Fast delivery and low costs usually feel like a trade-off. With bi-coastal fulfillment, you get to have both.

The Family Business Difference

There’s one more thing that sets our ecommerce fulfillment services apart, and it’s not something you’ll find on a rate sheet: real human accountability.

At Medallion Fulfillment & Logistics, we treat your business like family. We don’t believe in one-size-fits-all packages or hidden fee traps—just transparent, reliable ecommerce fulfillment tailored to your brand’s unique footprint. Whether you need bi-coastal storage, shopping cart integrations, or custom kitting, we deliver value for every dollar.

When you have a question, you talk to a person who knows your account—not a faceless ticketing system that replies three business days later. After more than three decades in this business, we’ve learned that partnership beats transactions every single time.

Predictable Costs, Confident Growth

Scaling an ecommerce brand is hard enough without playing detective every time an invoice lands in your inbox. Hidden 3PL fees don’t just cost you money—they cost you the clarity you need to make smart decisions. Transparent pricing flips that script. When your fulfillment costs are fully disclosed and tailored to your actual needs, you can plan ahead, protect your margins, and grow without nasty financial surprises.

Ready for an honest partner in logistics? Click here to request your FREE, no-obligation price quote today and see how much you can save with fully disclosed pricing.

The “Zone Skipping” Math: A CFO’s Guide to Bi-Coastal Logistics 

In the world of eCommerce, the Marketing Director is often focused on the “front end”—customer acquisition costs (CAC), conversion rates, and brand identity. But for the CFO, the real battle is fought on the “back end.” Once a customer clicks “buy,” the profitability of that sale is immediately at the mercy of shipping zones, fuel surcharges, and transit times. 

If your brand is fulfilling from a single location—whether it’s a garage in Ohio or a mega-warehouse in Texas—you are likely leaking margin with every cross-country shipment. At Medallion Fulfillment & Logistics, we’ve spent 30 years helping brands realize that logistics isn’t just a cost center; it’s a mathematical puzzle that, when solved, unlocks massive capital. 

The solution? The Bi-Coastal Advantage. 

Understanding the “Zone” Trap 

Major carriers like UPS, FedEx, and USPS calculate domestic shipping rates based on “Zones.” These zones are determined by the distance between the point of origin and the final destination. 

  • Zones 1 & 2: Local deliveries (0–150 miles). 
  • Zone 8: Cross-country deliveries (1,800+ miles). 

The price jump from a Zone 2 shipment to a Zone 8 shipment isn’t incremental—it’s exponential. For a standard 5lb package, shipping from Los Angeles to New York (Zone 8) can cost 35% to 50% more than shipping from Boston to New York (Zone 2). If half of your customer base is on the opposite coast from your warehouse, you are effectively paying a “geography tax” on 50% of your revenue. 

The Mathematics of Zone Skipping 

“Zone Skipping” is the strategic practice of inserting inventory closer to the end consumer to bypass high-zone shipping rates. By utilizing Medallion’s bi-coastal hubs in Los Angeles and Boston, you aren’t just adding a warehouse; you are shortening the map. 

Consider a brand shipping 5,000 orders a month. 

  • Single Warehouse Model (Midwest): Average shipping cost per package is $12.50 due to a mix of mid-range zones. 
  • Medallion Bi-Coastal Model: By splitting inventory, the majority of orders fall into Zones 1–4. The average shipping cost drops to $9.75. 

The CFO’s Calculation: A savings of $2.75 per package across 5,000 orders equals $13,750 in found profit per month. Over a fiscal year, that is $165,000 added directly to the EBITDA without increasing your marketing spend by a single dime. 

Beyond the Shipping Label: The “Time-Value” of Inventory 

Shipping costs are the most visible savings, but the “math” of a bi-coastal partner goes deeper. 

  • Reduced Transit Time = Faster Cash Flow: When a package arrives in 2 days instead of 6, customer satisfaction spikes. More importantly, return cycles happen faster, and the “time-to-reorder” shrinks.

  • Carrier Leverage: Medallion has 30 years of history and massive aggregate volume. We pass our negotiated enterprise rates to our partners, providing “small-to-mid-sized” brands with “Fortune 500” shipping power.

  • Port Proximity: Our LA facility is minutes from the nation’s busiest ports. Reducing the “drayage” (the truck trip from the port to the warehouse) for your imported containers can save thousands of dollars per shipment compared to hauling that same container to an inland hub. 

The Strategic Redundancy Factor 

A CFO’s job is also to manage risk. A single-node fulfillment strategy is a “Single Point of Failure.” If a blizzard shuts down the Northeast or a wildfire affects the West Coast, a single-warehouse brand goes dark. 

With Medallion’s unified technology, your inventory is visible across both coasts. If one region faces a disruption, we can pivot fulfillment to the other hub, ensuring your revenue stream remains uninterrupted. That is “business continuity” that you don’t have to build yourself. 

The Medallion Difference 

At Medallion Fulfillment & Logistics, we aren’t just a software platform with a rented warehouse. We are a family-owned, experienced partner that understands the physical reality of the supply chain. We provide the bi-coastal infrastructure you need to stop overpaying for “Zone 8” and start investing in your brand’s future. 

When you’re ready to look at the numbers, we’re ready to show you the math. Get a free price quote today!

 

Warehousing or Fulfillment Service – Understanding Your Needs

Medallion Fulfillment for Third Party Fulfillment Needs.

As the operator of a virtual storefront, your eCommerce business needs storage for your products and a way to fulfill orders. Which will better satisfy your needs: a warehouse or a fulfillment company? Take a closer look at how each one works.

Difference Between Warehouse and Fulfillment Center

• Warehouses are widely used by both eCommerce shops and brick-and-mortar stores. These large facilities provide storage for a company’s inventory until it’s sold. Individual SKUs (stock keeping units) are kept on shelves or in storage bins and containers to facilitate order-picking.

• On the other hand, a fulfillment center is a more comprehensive operation. In addition to storing product, a fulfillment center generally handles the entire process, from inventory management to order filling and shipping. These centers are sometimes referred to as a third-party logistics provider, or 3PL.

Benefits of a Fulfillment Company

• In business, larger volume means better pricing. A fulfillment center manages a number of customers, allowing them to receive more advantageous pricing on supplies and transportation than you could ever obtain on your own.

• Are you finding it difficult to keep up with the ever-increasing number of orders? Is it taking too long for customers to receive their products? Fulfillment centers have streamlined processes that can be scaled to accommodate company growth.

• Order fulfillment involves many moving parts. Managing this side of your business on your own is cumbersome and time-consuming. When you partner with a fulfillment warehouse, it frees you up to spend your time and energy growing your business.

A Fulfillment Company Invested in Your Success

At Medallion Fulfillment & Logistics, your success means our success. We have a variety of services, including start-up and Amazon replenishment warehousing, that can be tailored to fit your individual needs. Contact us today for more information.

Startups and New Businesses Have Special Financial Needs, How to Plan for Success

Women, owner of small business packing product in boxes

For many new entrepreneurs, managing finances is one of the more intimidating aspects of a startup business. Ensuring that funding, expenses and other financial elements are controlled from the beginning prevents minor issues from snowballing into major problems.

The good news is that financial management is not as difficult as you might think. Our fulfillment warehouse has been part of several successful startups, so we’re offering these expert tips to get your fledgling business rolling with solid financial planning.

Manage Expenses

In the beginning, expenses can be a huge drain on cash flow during the time you need it the most. Fortunately, most costs can be reasonably estimated ahead of time. Create a year-long budget covering rent, wages, materials, taxes and other fixed expenses and focus on keeping them as low as possible.

Avoid Commingling Funds

As the owner, you may feel all funds are ultimately yours so the line between personal and business finances becomes blurred. When you keep both sides completely separate, it’s much easier to track business finances and prevent personal spending from draining the company account. You should also formally pay yourself a salary rather than simply dip into company funds.

Keep Detailed and Accurate Records

When it comes to judging your company’s performance, you can’t afford to rely on gut feelings or instinct. Make sure an experienced accountant, either in-house or outside, is keeping track of revenue and expenses. Review financial statements regularly and make adjustments based on a clear, overall picture.

Don’t Overdo It

You may feel compelled to take on as many roles as you can to save money, but that strategy can actually be counterproductive. Learning unfamiliar skills on the fly can end up costing more time and money than hiring an experienced person in the first place. Delegating work frees you up to focus on your passion and grow the business.

Learn to Negotiate

Don’t take vendor terms at face value. You’ll be surprised at how often suppliers are willing to make concessions to gain your business. Prepare a game plan ahead of time so you know what your goals are. Remember that it never hurts to ask!

Invest in Technology

Business technology has become so advanced and so widely integrated that your company will be at a serious disadvantage from day one without it. Any investment you make in technology will pay for itself in money and time savings.

Establish an Emergency Fund

Financial experts recommend that people maintain an emergency fund to cover unexpected expenses, and a company is no different. Put aside a percentage of income during peak times to help tide you through the slow periods.

Fulfillment Warehouse Services That Grow Along with You

Are you struggling with adjustments as your business expands? Our fulfillment warehouse services can be tailored to meet you specific needs today and scale to accommodate future requirements. Contact us at Medallion Fulfillment & Logistics to learn more about why we are the first choice for one-stop warehousing, inventory control and order processing services.

Tips to Moving One-time Shoppers into Lifetime Buyers

California and Massachusetts Fulfillment Services

Year-end holiday sales have traditionally made up at least 20 percent of a retailer’s annual total. Thanks to a strong labor market and a high level of consumer confidence, international business consulting firm Deloitte is predicting a 3.6 to 4 percent increase in holiday spending for 2016.

Now for the bad news: holiday customers shop with you primarily out of convenience, rather than a strong affinity for your brand. While they have a solid impact on overall business, they rarely translate to repeat customers.

Three Ways to Convert One-time Shoppers to Lifetime Buyers

It costs far more to attract a new customer than it does to retain an existing one. Here are some tips to keep those lucrative seasonal customers coming back for more.

1. Educate Them

Yes, consumers like to save money, but your brand and its message are what earn their loyalty. Instead of bombarding new customers with come-on’s offering discounts and promotions, follow up with a welcoming email explaining who you are and how your company can solve their problems with your products or services.

2. Add a Personal Touch

With the increasing amount of competition in the marketplace, your company has to stand out above the others to gain sales. Offering superior customer service is a great way to set you apart. Using a proactive approach to address customer questions and concerns demonstrates that you consider them to be more than a faceless seasonal transaction. For many sites chat functions for immediate interaction is a great way to add a personal touch.

3. Retarget One-Time Customers

Converting seasonal customers means getting them to think of your company as a year-round solution to their needs. Social media lets you target specific audiences with information such as new products, coupons and even “non-ads” thanking customers or asking for feedback.

Focus on Marketing and Let Medallion Fulfillment & Logistics Handle the Rest

Sales and marketing is a full-time job and should have your focus to help your business grow. Leave the ordering, warehousing, packing and shipping to us. We have more than 25 years of experience in providing professional and cost-effective fulfillment services so you can concentrate on growing your business. Contact us today for more information.