Falcon Team, Author at Falcon Fulfillment

How to Create an Effective Reverse Logistics Plan

Any successful streamlined supply chain relies heavily on reverse logistics. Consumers have grown to expect an easy return policies and processes. Creating an effective reverse logistics plan can increase sales, customer satisfaction, and loyalty. Let’s look at what reverse logistics is and how to create an effective plan.

What is reverse logistics?

Reverse logistics is a type of supply chain management that moves goods from customers back to businesses responsible for selling or creating them. Simply put, reverse logistics deliver goods from the customer back to the manufacturer or seller. Returns are the most common; however, reverse logistics can include refurbishing, unsold seasonal goods, delivery failure, and repairs or maintenance.

How does reverse logistics work?

The reverse logistics process begins after the sale of a product. Typically, a customer or vendor initiates it when they are dissatisfied with a product or no longer find it useful. The steps required for a return to be successful will vary greatly by industry. Depending on the industry and product, the responsible party will arrange for the transportation of the item back through the supply chain. This includes sending return labels, packing materials if necessary, or scheduling a local pickup for larger or bulky items.

Why create a reverse logistics plan?

A reverse logistics plan can reduce storage and distribution costs. It can improve customer relationships, retention, and satisfaction and create a sustainable supply chain. Some companies are starting to leverage their return policies as a competitive advantage. Let’s get into the components and best practices of an effective reverse logistics plan.

Components of creating an effective reverse logistics plan.

Returns Management

Returns management is the area of business operations that oversees inbound product returns. An effective plan will leverage methods that ensure speed, visibility, and control. This includes; implementing technology for automated returns, inventory tracking, restocking, and disposing of products ineligible for resale. Building an effective returns process can help a company reduce, reuse, and recycle materials that otherwise would end up in a landfill, thus boosting a company’s sustainability efforts. Not only that, but managing returns will help to increase profitability by minimizing inventory costs.

Return Policy and Procedure

A return policy or procedure are the rules that a retailer outlines when a customer needs to return or exchange a product for any reason. The bare minimum included in a return policy is the type of products that can be returned, acceptable reasons for a return, and the timeframe in which a return needs to be actioned. It is crucial to develop a fair and balanced return policy because this helps build trust between a brand and the consumer. Vital elements of a great returns policy are as follows:

Clear communication
Hassle-free
Costs are fair (e.g., don’t make the customer pay for return shipping if the item arrived damaged)
Flexible (if a customer is one day over the timeframe, make an exception)
Quickly refund money when necessary

Refurbishment

Another part of creating an effective reverse logistics plan could involve refurbishing products. Depending on industry-specific compliance, many returned products can simply be re-added to inventory for resale. However, there are times when a return is salvageable but must be refurbished or remanufactured. When done well, a solid refurbishment process helps a company recoup financial losses from a return. Additionally, refurbished goods help protect the environment from needless waste.

Unsold Goods

What to do with seasonal or unsold merchandise? Consumers expect brands to dispose of their inventory in a socially responsible way. Big brands that are in the habit of simply trashing their unsold goods are beginning to be called out by dumpster diving activists. Consumers expect brands to dispose of their inventory in an environmentally conscious way. There are a few crafty ideas to help eliminate unsold inventory and minimize the environmental impact of returns.

End-of-Life (EOL)

>While a vintage t-shirt may not have an end-of-life cycle, technology certainly does. Many companies prepare thoroughly for the initial life-cycle stages, including introducing new products, upgrading features, upselling accessories, etc. However, few companies adequately prepare for a product to be phased out. Depending on what products your company sells will determine if an EOL procedure should be included in your reverse logistics plan. Here are a few things to consider if your product does have an EOL cycle;

Develop an in-depth strategy for sunsetting the product
Monitor component production for parts that are critical for the product (e.g., Tesla’s battery replacement)
Communicate with customers early and often if a product will no longer be serviced or available
Develop a plan to dispose of EOL products responsibly

Steps to create an effective reverse logistics plan.

Receive, acknowledge, and process the return.

The first element of reverse logistics is when a customer wants to return a product. Outline a clear way for the customer to begin this process in your returns policy. Once the return has been initiated, it is essential to acknowledge the request has been received. Next is processing the return. Processing a return should include the following:

return authorization
scheduling return shipments
sending package labels if necessary
receiving returned items
evaluation of product condition<
issuing refund
Shipping an exchange or replacement

Handle returned goods.

Once the returns process begins, it will reach the processing center, where the next step involves categorization. Specifically, the item will undergo options such as being fixed, resold as new, resold as a return, recycled, scrapped, or refurbished. A fully optimized reverse logistics plan will complete categorization before the item arrives at the processing center.

Move returns forward.

Each item, based on its category, requires movement or dispatch to the relevant department. For example, the department responsible for repairs should handle items in need of repair. Similarly, products suitable for resale as new should be reintegrated into the inventory and stored for resale. Often, the returns department can become overcrowded with products waiting for relocation. Managing returns promptly helps businesses prevent inventory level errors and recapture lost revenue.

Repair or refurbish items.

If a returned product is repairable, deliver it to the respective department. For products deemed unsuitable for repair, consider dismantling and selling them for parts. After rebuilding or refurbishing the item, add it to the relevant inventory category.

Recycle

Companies that focus on recycling are doing their part in creating a sustainable future and will be ahead of the curve. Recycle any goods that do not meet the standards for repair, refurbishment, or resale. Locate a recycling partner for products that are unsuitable for resale.

Dispose of unusable products.

Ideally, maintaining a small size for this category relies on carefully following each of the previous steps. Moreover, it remains imperative to execute the disposal of unusable products with consideration for social and environmental impact. Additionally, when other options exhaust, discarding returned products becomes necessary.

Every business we have a unique approach to reverse logistics. The product type, industry, and even timeframe will determine which areas of the reverse logistics plan need detailed insights. Regardless, successful companies create effective reverse logistics plans before they attempt to make their first sale. They understand that returns happen, and the more seamless the process, the happier their customers will be. Get in touch today to learn more about how Falcon Fulfillment can help you manage your reverse logistics process.

Contact us to learn more about our services.

Let’s Talk!

Connect with us!

by Falcon Team

Inventory Management - Expectation vs. Reality

Inventory Management – Expectation vs. Reality

Inventory management is an essential part of running a successful business. Streamlining inventory management processes can boost profitability and improve efficiency. But, it is often easy to have unrealistic expectations about what inventory management can do for you. Here, we will explore the differences between expectation and reality regarding inventory management.

Expectation: With inventory management, you can easily track and manage all your inventory in one place.

Reality:

While it is true that inventory management can make it easier to keep track of your inventory, it is not as easy as it sounds. For accurate tracking to be possible, it is necessary to organize your warehouse effectively. Furthermore, adding images to similar products is helpful in reducing inventory levels and order errors. Additionally, tracking systems must be integrated and updated in real-time if your business utilizes multiple distribution centers. Selecting the type of inventory management system will also determine how easy it will be to track and manage. There is no question that an inventory management system will help streamline the process and improve inventory efficiency. That being said, gaining clear visibility into your inventory requires a lot of organization and attention to detail.

Expectation: Inventory management will make it easier to keep your costs down.

Reality:

Inventory management can help you keep your costs down, but it is not a magic solution. You will still need to be aware of market trends and purchase items at the right time to get the best prices. Furthermore, you will need to be able to forecast your future needs and keep a close eye on your inventory levels. Here are some additional considerations when managing inventory that will help you keep costs low.

Strengthen Supplier Relationships: Ensuring open and consistent communication with suppliers will improve efficiencies, speed up product deliveries, and reduce warehousing requirements.
Conduct Regular FSN Audits: Fast-moving, slow-moving, non-moving? Determining which products are performing well will allow you to liquidate slow or non-moving products and promote fast-moving items.
Diversify Suppliers: By working with several suppliers, you can ensure adequate product levels and encourage healthy competition from your vendors.

Expectation: Inventory management will save you time.

Reality:

Inventory management helps you save time, but it requires proper setup to reap the most benefit. Initially, setting up a new inventory management process takes a significant amount of time. Here are just a few of the tasks required to launch a time-saving inventory management process effectively:

Each product SKU must be added to the inventory management system.
Link all inventory systems with all sales channels.
Test product levels and sales tracking accuracy.
Ensure product labels, bar codes, and delivery tracking are functioning correctly.
Set a cycle count schedule (including physical inventory counts).
Set reorder thresholds for optimal stock levels.
Automate as much of the process as possible.

You will still need to spend time tracking and managing your inventory. If you are not careful, you could end up sacrificing more time trying to manage your inventory than you would have if you hadn’t implemented inventory management in the first place. Once an inventory management system is in place and adequately tested, it will save you time and money. But, it can take some trial and error to optimize the process.

Expectation: Inventory management makes it easy to identify potential problems.

Reality:

Inventory management can help you identify potential problems, but it is not a crystal ball. Systems will only show you what they have been programmed to track. You will still need to regularly review inventory levels and be able to identify any issues that could arise. These include watching purchasing trends to mitigate overstocking due to lower demand. Another common problem would be running out of products because purchase thresholds were too low for manufacturer timelines. These nuances require trial and error or an individual who can analyze the data effectively to avoid inefficiencies or mistakes. Additionally, some problems with inventory management have less to do with the processes and systems and more to do with market fluctuations. Another way to save time, money, and the headaches of inventory management is to outsource it to a 3PL.

Beginner’s Guide to Third-Party Logistics (3PL)

The world of e-commerce is always changing, understanding the roll of Third-Party Logistics is integral to keeping up. This beginner’s guide to third-party logistics (3PL) will delve into the essential aspects, offering insights into fulfillment services, warehousing, and much more.

If you have outgrown your inventory management process or feel overwhelmed by it, let Falcon Fulfillment help. We have been successfully partnering with business owners for years; talk to one of our agents today.

Let’s Talk!

Connect with us!

by Falcon Team

4 Ways to Maximize Your Partnership with a 3PL Company

The success of your business depends on the strength of your partnerships. When working with a third-party logistics (3PL) company, you need to ensure that you have a solid and productive relationship. Shockingly, more than half (60-65%) of strategic partnerships fail, with common reasons including unrealistic expectations, failure to agree on objectives, and lack of trust or communication. That being said, there are several ways to bolster healthy partnerships that can stand the test of time … even endure a global pandemic. (wink, wink) Here are 4 ways to maximize your partnership with a 3PL fulfillment company

“If everyone is moving forward together, then success takes care of itself.”
Henry Ford

Create a comprehensive plan.

Before you start working with a 3PL company, you must create a comprehensive plan outlining the scope of work you intend to hire the 3PL to fulfill. This plan should include details about the services you need, when you need them, and how you expect the 3PL company to meet your expectations. It is equally important to outline goals and priorities, and service-level requirements. This will help ensure that you and the 3PL company are on the same page. Things to consider as you build your plan:

- Shipping frequency
- Order volumes
- Warehousing needs
- Cutoff times
- Returns management expectations
- Standardize shipping times
- Inventory management needs

Scalability
Expanded vendor network

Establish clear and open communication.

Effective communication is an essential component of any successful business relationship. Miscommunications and misunderstandings are breeding grounds for problems and complications. That is why it is necessary to establish clear and open dialogue between you and your 3PL to ensure both parties are in sync. Furthermore, promptly addressing questions or concerns will provide each party with the necessary support to move the partnership forward. Here are some crucial communication topics:

Examine the contract and clarify anything ambiguous or vague.
Discuss what kind of data needs to be shared and plan for a cadence for reporting.
Establish how problems will be initiated, escalated, and resolved. It is important to understand communication protocols before issues arise.
Determine if your 3PL company provides a dedicated account manager. If not, ensure you have the contact details of an individual who can assist with resolutions.

Set reasonable expectations.

Make sure that you and your 3PL are on the same page regarding what is expected of each other. 3PL companies will struggle with the same operational hurdles that you have internally. In other words, don’t set an expectation for your 3PL to solve a problem in two weeks that you haven’t been to solve for six months. However, it is entirely acceptable and healthy to share those complications initially. A solid 3PL partner could have a ready-made solution available, but you won’t know until you ask.

Another key to setting reasonable expectations is establishing what capabilities and value-added services your 3PL offers. Determine which will be included in your contract. These services could include kitting, reverse logistics, subscription box fulfillment, and specialized inventory management. Further expectations to set with your 3PL partner include; safety and security, acceptable inventory shrinkage, customer service internal/external, accuracy, and responsiveness. Confirm that expectations are realistic and achievable to ensure the best outcome for both parties.

Monitor Performance

Monitoring the performance of your 3PL is essential for ensuring that your goods are being handled correctly and that your customers are receiving their orders on time. Specifically, track performance metrics such as on-time delivery, order accuracy, cost per order, and customer satisfaction regularly to ensure that your 3PL provides the level of service you expect. Additionally, establishing benchmarks and KPIs can help you track performance and ensure that both parties get the most out of the partnership. Moreover, regular reviews and audits of the 3PL’s performance will help ensure that their services meet your expectations and that your customers receive the best possible experience.

Beginner’s Guide to Third-Party Logistics (3PL)

Find out what partnership with Falcon Fulfillment looks like. Reach out to one of our friendly agents today.

Let’s Talk!

Connect with us!

by Falcon Team

Minimizing Shipping Costs for your E-commerce Fulfillment

If you’re running an e-commerce business, shipping costs can significantly impact your bottom line. Business planning experts estimate that shipping and fulfillment charges comprise 15-20% of your total net sales. As your business grows, minimizing shipping costs without compromising quality becomes increasingly important. Minimizing your e-commerce fulfillment shipping costs can immediately affect your bottom line. Here are a few tips to help you keep your shipping costs down while still providing excellent service to your customers.

Negotiate with carriers

Many major carriers offer discounts for higher volume shippers, so it pays to shop around and negotiate for the best rates. Shipping carriers adjust their rates annually; the average rate increase per annum is about 6%. It is crucial to evaluate these changes and negotiate preferred pricing when possible. If you can establish a relationship with a carrier, you may be able to get better rates. Here are a few additional tips to consider when negotiating shipping costs with major carriers.

Review past data and shipping negotiation outcomes: Understanding where you are starting from is necessary to have an effective conversation.
Identify frequently used accessorial fees: These added fees include; residential fees, special handling, and signature required. Evaluate which costs you are paying most often and see if you can negotiate preferred pricing on the most used accessorial fees.
Benchmark competitor rates and services: The best way to negotiate better shipping costs is to provide cost comparisons and offerings of competitors.
Ask for freedom in renegotiating contracts: Don’t sign any agreements that limit your ability to start or terminate a contract before an old one has expired. Shipping charges, fees, and needs fluctuate with e-commerce regularly, so ensuring you can change carriers or services mid-contract is vital.
Maintain all money-back service guarantees: Carriers miss the mark. When they do, you need to reclaim revenues, lost package insurance, and other refunds typically offered by major carriers.

Use flat-rate shipping

If your products qualify for flat rate shipping, you can simplify your shipping process, reduce errors, and save on costs. The benefits of using flat-rate shipping include; predictable shipping charges, carrier-supplied packaging, and the offer of free shipping with total clarity on the business costs associated with it. Flat-rate shipping also helps to make your shipping costs more transparent to customers. The drawbacks of using flat-rate shipping include; shippers can end up paying for more space than they need, no opportunities for branded packaging, and impersonal customer unboxing experiences.

Utilize multiple shipping locations

If you’re shipping large quantities of products, it may be more cost-effective to ship from various warehouses. To that end, evaluating the number of SKUs in your inventory, order volume and weight, and technology available for complete omnichannel fulfillment is critical. This is especially true if you evaluate the location of your primary sales audience far from your distribution warehouse. When choosing whether a multi-site distribution strategy will minimize shipping costs for your e-commerce, there are several factors to consider.

Utilize low-cost packing materials

There’s no need to spend a fortune on packing materials. Many e-commerce businesses now use recycled materials, such as cardboard boxes, paper packing peanuts, and bubble wrap. Furthermore, many e-commerce businesses are turning to sustainable packaging options for cost savings and to become more eco-friendly

Consider third-party logistics companies

Third-party logistics companies specialize in helping e-commerce businesses reduce their shipping costs. They can provide cost-effective solutions.

Preferred shipping rates due to bulk order volume discounts are passed to clients.
3PL fulfillment teams are experts in optimized shipping routes, so they save you money and time.
3PLs have relationships with several major shipping carriers, which gives your e-commerce access to a wider range of carriers.
Many 3PLs offer multi-site distribution.

Additionally, when you work with a fulfillment company like Falcon, they can offer custom, sustainable, and cost-saving packaging options that don’t make you sacrifice branding opportunities. If you have consistent order volume but are not benefitting from preferred volume pricing, it might be time to consider a 3PL partner for your fulfillment needs.

Beginner’s Guide to Third-Party Logistics (3PL)

If you would like to learn how Falcon Fulfillment could help you minimize shipping costs get in touch with our friendly team today.

Let’s Talk!

Connect with us!

by Falcon Team

Health, Wellness, and Beauty Fulfillment

The health and beauty industry has seen a massive surge in demand over the past few years. People are investing in their health and beauty needs more than ever before. According to a report by CommonThread, the beauty and personal care market will reach a whopping $784 billion in sales by 2027. With this increased demand comes the challenge of fulfilling orders quickly and efficiently. Health, wellness, and beauty fulfillment have unique challenges that other verticals do not. The receiving, storing, packing, and shipping of beauty products require additional care and supervision. This article will discuss the challenges of health, wellness, and beauty fulfillment and the solutions to overcome them.

Challenges in fulfillment of health, wellness, and beauty-related products

Expiration Dates

Managing the expiration dates of health and beauty products can be a challenge for retailers. Products such as makeup, skincare, haircare, and other beauty products have expiration dates that are often hard to keep track of. Many products have a short shelf life and must be rotated regularly to ensure customers get the freshest products. Additionally, retailers must be mindful of the differences in expiration dates of different beauty products, as some products may expire sooner than others. Retailers must also keep a close eye on the expiration dates of returned products to ensure that customers are not purchasing expired products.

Regulating Temperatures

The challenge of regulating the temperatures of health, wellness and beauty products during fulfillment is a significant concern for many businesses. These products are sensitive to extreme temperatures and humidity changes and must be stored and shipped carefully to ensure their quality and efficacy. Temperature-controlled environments must be established, monitored, and maintained during storage and shipping to ensure that the products are not exposed to temperatures outside their acceptable ranges. It is also essential to have procedures in place to track and monitor the temperature of the products throughout the entire process, from warehouse to customer, to ensure that the products remain within their acceptable temperature range. OSHA recommends that warehouses maintain all internal companies at a range of 68-78 degrees Fahrenheit, with humidity in the approximate range of 20 to 60 percent. These standards can dramatically fluctuate based on the location of the warehouse.

Custom Packaging

Custom packaging for health and beauty products poses a unique challenge during fulfillment. These products often need to be packaged in specialized materials to ensure their safety and integrity, such as airtight containers or leakproof bags. Additionally, products may require additional protection to ensure they arrive undamaged, such as cushioning or extra layers of cardboard. This can add extra costs and time to the fulfillment process. Many of the products offered in the health, wellness, and beauty industry are expensive and vary widely in the materials used and the shape of the containers. Also, beauty brands boost their average order value (AOV) by offering multi-buy sales, buy-one-get-one, and customer bundles. This adds to the complexity of packaging multiple products within one shipment. Furthermore, ensuring the packaging complies with relevant regulations can add further difficulty. These factors make packaging for health and beauty products a challenge during fulfillment.

Expedited Shipping

Expedited shipping is essential for health and beauty products as it ensures that customers receive items quickly and safely. With the growth of online shopping, customers increasingly rely on the speed and reliability of expedited shipping to receive the beauty and health products they need. Expedited shipping is particularly critical for products that need to be stored in a cool, dry place or require refrigeration. These items can quickly become damaged if not shipped promptly. Additionally, many customers wait until they run low on a product and rely on expedited shipping to save the day. Businesses can ensure customer satisfaction and loyalty by offering the fastest available shipping.

Solutions for successful health, wellness, and beauty fulfillment/span>

FIFO method for inventory (first in, first out)

The FIFO method (First In, First Out) is a great way to maintain the quality of health and beauty products. It ensures that the oldest products are used first, thus protecting the integrity of the product. This method can be used in many ways, from stocking shelves to fulfilling orders. Retailers can use the FIFO method to ensure that their customers receive the freshest products possible. Additionally, this method helps to reduce waste by helping to prevent expired products from being sold. For retailers, using FIFO helps maintain customer satisfaction and loyalty, as customers will always receive the best products. This method requires a highly organized inventory management system and rigorous return management protocols, but it is highly effective.

Automated Inventory Management

Automated inventory management is essential to efficient health and beauty product fulfillment. This technology allows retailers and distributors to track product availability, accurately forecast demand, reduce out-of-stock, and maintain accurate inventory counts. Automated inventory management systems provide real-time updates on inventory levels and can be used to alert staff when stock is low, or replenishment is needed. Ensuring the use of a high-tech inventory system also helps manage expiration dates, boost order accuracy, and manage multi-SKU product lines. Automated inventory management improves the visibility of the entire fulfillment process, from ordering to delivery. With automated inventory management, health and beauty product fulfillment can be more efficient and reliable, ensuring that customers receive their products quickly and accurately.

Strategic Fulfillment Center Locations

Because health, wellness, and beauty brands rely on delivery speed and accuracy, it is essential to procure fulfillment centers in strategic locations. This helps with delivery speed as well as return efficiency. Beauty brands that partner with a quality 3PL with multi-site distribution have a leg up on competitors simply due to their ability to distribute products quickly.

Memorable Unboxing Experience

Unboxing experiences can be a great way to boost customer satisfaction when fulfilling health and beauty products. Customers feel special and valued when they receive a custom-branded package that is memorable and personalized. This increases brand loyalty and customer satisfaction. Big beauty brands understand that this experience can be a shareable social event. Finally, memorable unboxing experiences can help to build a brand identity, allowing customers to associate the company with a particular style and quality. When a company invests in developing custom packaging and creating an experience, it helps to drive more sales in the future.

Value-added Solutions with a 3PL Partner

As businesses fulfill health, wellness, and beauty products, it can feel overwhelming to keep track of lot numbers, expiration dates, compliance requirements, and specialized labeling for specific products. Partnering with a 3PL can help manage many of the challenges in fulfilling beauty products.

Beginner’s Guide to Third-Party Logistics (3PL)

If you want to learn more about how your beauty brand can benefit from a partnership with Falcon, get in touch with one of our amazing agents today.

Let’s Talk!

Connect with us!

by Falcon Team

2023 E-commerce: 8 Must-Know Trends for a Successful Year

8 Must-Know E-commerce Trends for a Successful Year

It’s hard to believe it was over 27 years ago when Amazon’s first order was placed. Fast forward to today, presently the e-commerce industry has made more than $5.5. trillion in sales worldwide. As the world of e-commerce continues to evolve, it is vital for businesses to stay up-to-date on the latest trends to remain competitive. In 2022, there were significant changes in how e-commerce businesses interact with customers and how they market to them. While there are many more, our 8 must-know e-commerce trends are some of the most important ideas to be successful in the coming year.

1 – BNPL (Buy Now, Pay Later)

The number of BNPL users in the US will likely grow from 45.1 million in 2021 to 76.6 million by 2025. The BNPL model has dramatically increased the purchasing power of the American consumer. Furthermore, this flexible finance option has encouraged new growth in the lending sector with companies like; Klarna, Affirm, Afterpay and Sezzle. The buy now, pay later model has been shown to reduce cart abandonment, boost sales, speed up the checkout process, and increase the order value size. Expect an expansion of this trend as inflation rises and discretionary income wanes.

2 – Sustainability

The rise in sustainable e-commerce practices will continue to be a trend. Therefore, as Millennials and Gen-Z age into power-buying consumers, they bring an environmentally conscious mindset. According to Forbes.com, almost 30% say they want to improve the environment, with 23% wishing to reduce production waste, 22% desiring to reduce their carbon footprint, and 17% concerned with animal welfare. Therefore, to stay competitive in the e-commerce marketplace, brands are shifting product manufacturing and fulfillment to more sustainable options. One way that brands can adopt sustainable practices is by partnering with a 3PL that is environmentally conscious. Here are a few other ideas to help implement sustainability in 2023.

Go paperless.
Cut waste out of your manufacturing process.
Streamline transportation routes.
Recycle old goods.
Source sustainable brands and products.
Explore the rental business model.
Use refurbished or recycled materials for in-store displays and decor.
Reduce returns and upcycle exchanges.

3 – Social Commerce

Social commerce is where the entire shopping experience occurs on social platforms, from product discovery to purchase. According to The Future of Commerce, “Global sales via social media platforms were estimated at 992 billion U.S. dollars in 2022, and forecasts suggest that social commerce sales will reach around 2.9 trillion U.S. dollars by 2026. Social application technology has advanced to include much more than a promotional tool. Subsequently, today customers can discover new products, purchase them, and even receive customer service via social commerce. Here are some of the most relevant benefits of investing in social commerce solutions.

Reaching customers in an age where Google has abandoned cookies, and Apple is restricting retargeting
Keep the shopping experience native to the social platform (no need to go elsewhere to complete the sale)
Provide a seamless and personalized shopping experience
Cultivate community and sales 24/7

4 – Expanding Omnichannel Capabilities

Expanding the omnichannel experience for customers isn’t optional for e-commerce brands that want to remain competitive. An Aberdeen Group study showed companies that delivered solid omnichannel customer engagement retained — on average — 89 percent of their customers, compared to 33 percent for companies with weak customer engagement. Here are a few of the top ways that brands are expanding omnichannel capabilities:

Decentralizing customer care – it’s a company-wide initiative from the CEO to the customer service representative
Personalized experience (more on this later)
Improving the knowledgeability of customer care staff
Ensuring cross-channel inventory visibility with automated inventory management
Multi-site delivery or pickup options (BOPIS)
Provide virtual shopping experiences
Improve the ease of making returns or exchanges

5 – Video Marketing

Video marketing is one of the best e-commerce trends for a successful year to get a jump. Why? Because video marketing is one of the most effective tools to improve customer engagement, brand loyalty, and sales. Approximately 88% of consumers have been convinced to purchase from video content. Here are a few video marketing trends to consider adding to your content arsenal this year.

Live video – utilizing the attraction of something happening right now has proven to keep audiences engaged 3x longer than pre-recorded content and has 6x the number of engagements. Regardless of the platform used to broadcast the live content, make sure to consider adding a few to your marketing lineup.
Search-optimized video – because videos are becoming the preferred medium of content consumption, it’s no surprise that it is essential to ensure they are showing up in relevant searches.
Vlogs – up your brand storytelling by sharing vlogs. These can include a general overview of what your brand is about, product tutorials and overviews, as well as user-generated content.
Silent videos – Yes, that’s right…silent videos are coming back. Many customers are scrolling social channels with the sound muted. Therefore, a video that tells a compelling story without the need for sound is performing well.

Video production doesn’t need to cost a fortune, either. Most video trends can be adopted using a simple smartphone and a few lost-cost editing tools. Even more, some editing tools are found right within the social platforms for which the video is intended. Improve your customer engagement with more video marketing this year.

6 – M-commerce

According to Statista, mobile commerce (m-commerce) accounts for 73% of the global e-commerce market. Driving this mobile commerce trend is the estimated 292 million people expected to have their own mobile devices by 2024. And it’s predicted that some 187.5 million will shop via smartphone. Therefore, while m-commerce isn’t a new trend, it continues to be a growing area of focus for e-commerce retailers. A few things m-commerce basics to ensure your company implements for 2023 to stay competitive include:

Ultra-responsive mobile site design – Google has started to include mobile responsiveness in its search algorithm. Hence, your organic search rankings could suffer if your site is not built for mobile.
One-click ordering – shoppers abandon carts quickly when the checkout process is too long or cumbersome. More brands are investing in streamlining the checkout process to include one-click ordering.

Shopping via mobile app – many brands are driving consumers to a mobile app built for buying. 85% of users prefer a mobile shopping app to a mobile-responsive website. Plus, mobile apps are converting sales at a whopping 157% more.

7 – Personalization

Personalization is using personal data to provide tailored experiences to shoppers of products in a retail environment. Whereas every path to purchase is different, and personalization in retail aims to serve each individual based on their needs and behaviors. Even though personalization has been part of the e-commerce conversation for more than five years now, it remains a relevant trend in 2023. Here are some specific personalization trends to adopt in 2023.

Leveraging AI/Machine learning to provide nuanced personalization for each customer
Implementing “Zero-Party Data” mining
Location-based marketing and geotargeted sales, promotions, and discounts
Personalized loyalty programs
Security and data-privacy improvements

8 – Using AI/Machine Learning

AI, or artificial intelligence, can mean many things, but when it comes to e-commerce it includes; machine learning, predictive analytics, and advanced AI that can convert troves of data into actionable insights. Ultimately, the utilization of AI is a must-know e-commerce trend for a successful year more than ever. AI can be most helpful for retailers in a few key areas. They are:

Interactive Chatbots – As customer service becomes a trend that will soon be a primary differentiator, chatbots powered by AI will be a tool that improves customer satisfaction and can perform routine requests 24/7 without the need for human resources.
Dynamic Marketing Outreach – Advanced CRM systems are learning customers’ behaviors and preferences to create a detailed shopper profile and utilize this information to deliver proactive and personalized outbound marketing — tailored recommendations, rewards, or content.
Operational AI – programs can preemptively manage orders, staffing, and inventory levels and predict sales cycles. This technology streamlines operational processes and improves efficiency.
Personalization – AI can help offer a unique shopping experience to all customers, making recommendations, rewards, and discounts based on consumer preferences and behaviors.

Beginner’s Guide to Third-Party Logistics (3PL)

We can help expand your omnichannel offering and free you up to focus on implementing the trends that will best serve your business success in 2023. Get in touch with one of our agents today.

Let’s Talk!

Connect with us!

by Falcon Team

3 Advantages of a 3PL that Improve Your Bottom Line

When running a business, one of the most important factors to consider is your bottom line. To keep your business running smoothly and profitably, it is essential to keep costs to a minimum. One way to do this is by leveraging the advantages of a third-party logistics provider (3PL). A 3PL is a company that provides a variety of services to help businesses manage their warehousing, transportation, and other supply chain needs. These services can help companies to save money, improve efficiency, and reduce the amount of time and effort required to manage the shipping and logistics process. Using a 3PL has many advantages that can help businesses cut costs and improve their bottom line.

Experience and Insight

Supply chain logistics can be complex and confusing. 3PLs typically have more resources and experience than individual business owners regarding the fulfillment industry. With the knowledge and expertise, 3PL teams can help reduce storage, transportation, and overhead costs. Additionally, they can help improve efficiency by streamlining processes and consolidating shipments. 3PLs are always informed and up-to-date on laws, regulations, taxes, customs information, and other factors that can be a nuisance to shippers. Where a business owner might go through multiple seasons of trial and error to achieve the same seamless results, a 3PL will highlight inefficiencies and offer solutions faster.

Lower Costs

A solid 3PL partner can offer reduced warehousing, staffing, technology, and shipping costs. Here are a few ways to lower your operating costs working with a 3PL.

3PLs use advanced technology to manage their operations. This allows them to use data-driven insights to provide ideas for improvement.
3PLs offer freight consolidation and shared warehousing, which saves money for their clients.
3PLs have flexible warehousing, and many provide a pay-as-you-need options.
Transportation and logistics are the bread and butter of 3PLs, so they offer more efficiency than small in-house fulfillment teams.
3PLs can negotiate discounted freight rates with major parcel carriers (due to high order volumes) and pass along the cost savings to their clients.

Access to cost-saving benefits like flexible warehousing, staffing, and robust technology reduces overhead and improves the bottom line.

Save Time

Business owners understand more than most that time is money. 3PLs can help reduce the time and effort required to manage the shipping and logistics process. By leveraging the advantages of industry connections and implementing fulfillment best practices, your company will improve efficiency. Not only that, but a 3PL that utilizes multi-site distribution can decrease delivery times. Offering customers faster delivery doesn’t just improve your bottom line, but it ensures your company remains competitive.

Lastly, by partnering with a 3PL, you free up internal company time resources to focus on core competencies. Time once spent on managing fulfillment is now free to boost marketing efforts or developing new products. When a business owner isn’t in the weeds ensuring successful order fulfillment they can focus energy on what made them start the business in the first place.

Beginner’s Guide to Third-Party Logistics (3PL)

Let Falcon Fulfillment show you how we can boost your company’s bottom line. Get in touch with one of our experts today.

Let’s Talk!

Connect with us!

by Falcon Team

An Overview of 3PL Fulfillment and Its Benefits

3PL fulfillment and its benefits for your business.

As a retailer, you know how important it is to provide your customers with a great shopping experience. But, to do that, you need to have a reliable and efficient fulfillment process. This is where 3PL (third-party logistics) fulfillment comes in. This article provides an overview of 3PL fulfillment and its benefits for your business.

What is 3PL Fulfillment?

Third-party logistics (3PL) fulfillment consists of outsourcing many of the supply chain management tasks to an external logistics provider. This includes the storage and distribution of products, as well as providing services like order fulfillment, returns processing, inventory management, freight forwarding, and more. By outsourcing these tasks, companies can reduce costs and increase operational efficiency. 3PL fulfillment also helps to improve customer service, as the logistics provider is responsible for delivering products to customers on time and in good condition.

Why use a 3PL fulfillment partner?

Third-party logistics (3PL) fulfillment services can be an invaluable asset for retailers. By outsourcing their warehousing, inventory management, order processing, and shipping to a 3PL, retailers can save time and money while having access to a more extensive, more efficient distribution network. 3PLs also provide access to sophisticated tracking and reporting tools, allowing retailers to monitor their customers’ orders and inventory levels. Additionally, 3PLs offer scalability and flexibility, accommodating a retailer’s growth as business increases. Ultimately, 3PLs provide retailers with an efficient and cost-effective solution to managing their supply chain, allowing them to focus on their core business and providing excellent customer service.

Core 3PL Fulfillment Benefits for Your Business

Gain expertise and knowledge

Business owners are navigating ever-changing landscapes in the global marketplace. Hiring in-house staff that covers transportation documentation, customs compliance, import/export law, and international launch strategies can be challenging and expensive. Companies that partner with a quality 3PL gain the experience and knowledge of fulfillment experts. Businesses looking to expand into new markets can shorten the cycle by leveraging the insight of a 3PL that already services that region.

Save time and money

Managing your fulfillment operation can be costly. Paying for drivers, trucks, warehouse space, infrastructure, technology, and inventory management becomes time-consuming and expensive. Partnering with a 3PL can save you time in money in the following ways:

3PLs negotiate carrier contracts with fair and reasonable rates due to higher order volumes
3PLs offer flexible warehousing options, and many offer a pay-as-you-use contract
3PLs provide access to robust and modern inventory and order management technology
3PL partners hire and manage fulfillment staff (eliminates the expense of HR/insurance/benefits for what tends to be a larger team)
Many 3PLs offer distributed warehousing, which allows for more affordable shipping rates

Operational flexibility and scalability

One of the greatest benefits of 3PL fulfillment for your business is the flexibility and scalability they provide. Partnering with a 3PL provider allows businesses to scale up or down without investing substantially in overhead. They can provide flexible warehousing/staff throughout the year. This means that when a company has a boom in sales, it can quickly grow to meet the need. Equally important is the flexibility to scale back when unexpected bumps in the road occur.

Improved customer satisfaction

3PL fulfillment benefits Working with a solid 3PL partner is one of the best ways to improve customer satisfaction ratings. You will delight more customers than ever by leveraging their expanded network of carriers, advanced tracking technology, and streamlined fulfillment processes. Customers expect to have transparent, real-time tracking details, as well as lightning-fast delivery. These benefits are only achievable with significant investment. Therefore, partnering with a 3PL can also save money by improving customer satisfaction and retention scores.

Beginner’s Guide to Third-Party Logistics (3PL)

Get in touch with one of our friendly agents today.

Let’s Talk!

Connect with us!

by Falcon Team

6 Strategies to Improve E-commerce Customer Service

Strategies to Improve E-commerce Customer Service

It’s no secret that customer service is a key element to the success of any e-commerce business. After all, customers are the lifeblood of any business, and if they’re not happy, they’re likely to go elsewhere. That’s why it’s important to employ tactics to help you provide the best experience possible for your customers. E-commerce customer service assists customers with everything from purchases to returns and is a prerequisite for success. According to data from Microsoft, 95% of consumers, customer service is vital for brand loyalty. Here are 6 strategies to improve e-commerce customer service:

Provide multiple ways to contact customer service

Make it easy for customers to reach out. Provide customers multiple ways to contact you, including email, phone, social media, and live chat. This will make it easier for them to get in touch with you and get their questions answered quickly. There is nothing more frustrating than having to search for a company’s customer service contact details. If a customer cannot quickly find assistance, they will be upset before you try to solve the issue. However, it builds brand trust when help is straightforward and easy to find.

Create a robust self-serve option

The most significant benefit of developing a robust self-serve option is speed. Customers don’t want to have to wait … ever. A few ways to offer self-serve customer service is to create a FAQ page highlighting the most common issues. This saves your company time and money and makes the customer experience more efficient. In addition to an FAQ page, include screenshots and videos when possible. Create a searchable knowledge base or consider opening a community discussion forum. These can become a treasure trove of feedback that should be considered to improve the customer experience.

Offer personalized customer service.

Customers appreciate it when they feel they’re being treated as individuals rather than just another number. Take the time to get to know your customers and provide them personalized service. According to Accenture, approximately 33% of consumers have abandoned relationships with a brand because of a lack of personalization. Take the time to understand the customer’s question, goal, or problem. Once there is a clear understanding of the issue, it becomes easier to provide a personalized solution.

Improve response times

Customers expect a timely response to their inquiries, so ensure you respond promptly. E-commerce is built on speed and convenience, which is why customers shop online. Improving response times to a customer request will dramatically increase their trust and loyalty to your brand. A few ways to improve response times include; implementing customer service software, using automation like chatbots for common issues, sending time-based email alerts, and prioritizing service requests.

Leverage customer feedback.

It’s no secret that you will have to disappoint a customer now and then. Therefore it is crucial to ask your customers to provide feedback on their experiences with your business. All in all this will help you to identify areas where you can improve your customer service and ensure that you’re providing the best experience possible.

Improve customer service training and escalation procedures

Improving the e-commerce customer service experience starts with a well-trained team of support agents. Training customer service personnel on how to resolve common customer issues and when to escalate a case to their upline is vital. If support teams are escalating every case because they are not informed or equipped, customers will suffer, and ultimately so will your business.

Beginner’s Guide to Third-Party Logistics (3PL)

Get in touch with one of our agents today to learn more about our strategies to improve your e-commerce customer service.

Let’s Talk!

Connect with us!

by Falcon Team

Dropshipping - Drawbacks and Alternatives

Dropshipping – Drawbacks and Alternatives

If you’re considering starting or expanding your current business, you’ve likely heard about the dropshipping business model. Dropshipping is an attractive option for companies that don’t have the capital to invest in inventory or the resources to manage the logistics of shipping products. But is it the right model for your company? In this article, we will share the benefits, drawbacks, and alternatives to dropshipping.

Dropshipping is a business model in which a company sells products without stocking them. Instead, the company purchases the items from a third-party supplier, who then ships the items directly to the customer. This model allows companies to offer a wide variety of products without the overhead of stocking inventory. The advantages of dropshipping are numerous.

If you’re getting into the dropshipping model, research different dropshippers. Many overpromise and underdeliver. To run a good business, your customers need to be happy, so you need a good dropshipper.

Jeff Moriarty, Owner of Dog Christmas Stockings

Benefits of dropshipping

Even though dropshipping isn’t for everyone, there are some distinct benefits which include:

Less upfront capital is required to get started: To launch a successful dropshipping business, you don’t need to invest in purchasing or storing large quantities of inventory. This significantly reduces the resources required to launch your business.
Managing orders, stock levels, inventory, and shipping are all handled by the manufacturer or vendor:
A home-based or remote business possibility is readily available: Geography is less important when running a dropshipping business because you are not bound to a brick-and-mortar store.
Easier to test products: You can test out various products quickly and easily, allowing you to find the best-selling items fast. All this happens without investing a lot of resources in inventory.

Drawbacks to Dropshipping

Considering dropshipping drawbacks and alternatives; even though dropshipping is great for start-ups and smaller e-commerce brands, it can become a limiting issue. There are some significant drawbacks to the dropshipping model.

Lower Profit Margins

One of the most significant drawbacks to dropshipping is lower margins. Lower upfront investment costs mean lower returns. To make a profit, you need to sell a lot more products. Most of the margin goes to the supplier managing production and fulfillment. To overcome the lower margins, it is vital to differentiate your brand in the marketplace and negotiate profitable margins with your suppliers.

Higher Shipping Costs

Shipping costs can be high since you have products shipped from multiple suppliers. A customer can theoretically order from multiple vendors if you work with numerous manufacturers (as most dropshippers do). This means that if they ordered three items from your shop, they could incur three separate shipping fees on that single order. This is one reason why shipping charges tend to be higher with dropshipping. Another reason shipping costs are higher for dropshipping is the loss of volume discounts with fulfillment carriers. Unless you are dropshipping thousands of orders with a single vendor, it isn’t likely you will benefit from economies of scale.

Lack of Quality Control

You may also have issues with quality control since you’re dealing with multiple suppliers. And the lack of control over the customer experience can be a problem if something goes wrong. You are virtually uninvolved, from managing the supply chain to selecting last-mile delivery providers. There is a much higher chance of being held responsible for a poor customer experience that you have no power to change. Your company reputation is on the line, especially when working with average or low-quality suppliers. Often customers experience missing items, botched shipments, and product quality issues. Working with reputable dropshipping manufacturers can help, but this model falls short in managing the dirty details.

Inventory Issues

Because you don’t own your inventory supply, it can become problematic. For example, when a product becomes unavailable, you may not know immediately. This could mean you sell a product that is out of stock and will need to notify a customer of the disappointing news. Vendors and suppliers are improving their real-time inventory systems with dropshippers, but it is definitely a drawback of the model.

Whether the dropshipping model is best for your company depends on your goals and resources. If you’re looking for a low-cost way to get started and are comfortable with outsourcing some of the customer experience, then dropshipping can be a great option. But if you’re looking for more control over the customer experience and don’t mind investing in inventory, you may want to consider a different business model. Here are some of the best alternatives to dropshipping for order fulfillment.

Best Alternatives for Dropshippers

Fulfillment by Amazon (FBA)

FBA is an excellent alternative to dropshipping, as it allows you to store your products in Amazon’s fulfillment centers. This means that Amazon handles the packing and shipping of your orders while you manage the product selection and pricing. FBA is a great option for businesses that sell on Amazon, as it’s simple and cost-effective.

Self-Fulfillment

Self-fulfillment is an excellent option for businesses that don’t want to outsource their order fulfillment. You manage the entire process with self-fulfillment, from receiving orders to packing and shipping them out. This can be a great way to save on costs, as you’re not paying anyone else to do the work. However, it does require more time and effort on your part. This alternative works best for businesses that have access to low-cost storage facilities and are shipping smaller quantities of products.

Third-Party Logistics (3PL)

With all the dropshipping drawbacks one great alternative is outsourced fulfillment. 3PL is a great option for businesses that want to outsource their order fulfillment but don’t want to use dropshipping. With 3PL, you partner with a third-party logistics provider who handles the entire process, from receiving orders to packing and shipping them out. This can be a great way to save money, as you’re not paying for the overhead associated with running your own fulfillment center. Furthermore, an excellent 3PL partner can provide additional services like custom branded packaging, kitting, and light assembly, as well as managing returns. If you have outgrown dropshipping and don’t want to make a significant resource investment in warehousing and staffing for fulfillment, 3PLs are a great choice.
These are just a few of the best alternatives to dropshipping for order fulfillment. Each has its advantages and disadvantages, so it’s essential to evaluate your options and choose the one that’s right for your business. You can ensure that your customers get their orders quickly and efficiently with the right fulfillment solution.

Beginner’s Guide to Third-Party Logistics (3PL)

The world of e-commerce is always changing, therefore understanding the roll of Third-Party Logistics is integral to keeping up. In light of this our beginner’s guide to third-party logistics (3PL) will delve into the essential aspects, offering insights into fulfillment services, warehousing, and much more.

If you would like to learn how we can help your company scale past dropshipping, get in touch with one of our agents today.

Let’s Talk!

Connect with us!

by Falcon Team