Before and After: How the Pandemic Changed the Wellness Industry
Following the beginning of Covid-19 the wellness industry has transformed in ways that it may never return to.
We’ll be going over various trends, topics, and insights to help provide you with an idea of where the wellness industry is headed and what steps you can take to prepare your business.
The Concept of Wellness
The idea of wellness has always been popular. Humans have been producing and utilizing products for their health, wellbeing, and beauty for millennia.
This growing trend will only rise in popularity as science evolves and people become more interested in prioritizing their health and wellbeing.
According to the 2020 Mckinsey Future of Wellness Survey, consumers in every country spend the most on products dedicated to health, wellness, and beauty. Specifically, the personal care, beauty, and anti-aging sector are what make up the largest part of the wellness industry.
With these statistics, it’s understandable that:
"The wellness industry made up 39.99% of the entire global market in 2017."
In the last four years, that number has only risen. Additionally, the idea of putting health and well-being first is becoming more popular all over the world. This is great news for the health and wellness industry.
Even though things are changing in a way that is good for businesses, there are also changes that can make or break your business.
How has the pandemic changed the wellness industry, and what you can do to change with it?
A Shift in Interest
During the pandemic in 2020, it didn't take long for people to realize how fragile their health is and what it takes to damage it. We saw a sharp spike in consumers panic buying things like hand sanitizer, cleaning supplies, vitamins, and more because they thought they were going to get sick or product would run out.
People around the world started to think about how important it was for them and their families to be healthy. This motivated them to want to put their health first. In fact, more than ⅓ of consumers stated that their views on health and wellness have significantly changed over the last year and they were more concerned for their health, their family, and even the health of their pets.
"80% of Americans intend to regularly practice self-care because of Covid-19".
Now that the waves of the pandemic are slowly calming, it’s clear to see how the pandemic has changed the wellness industry.
At Home Wellness
As quarantine swept the world, people stayed inside their houses at all costs. Jobs transitioned to remote positions, online shopping grew, and our smartphones were the only thing that kept us connected to each other and the outside world.
In the beginning, at-home activities became more popular as time frames extended and people grew restless. Many people started making their own food and learning new skills. They also started reading books and paying more attention to their health.
As public buildings became increasingly inaccessible, people turned to cellphones, which ultimately digitized our everyday activities. This meant that individuals all across the world could accomplish practically everything they used to do all from home.
This included contactless grocery delivery, home-cooked meals, college lectures from your computer screen, and even a digital personal trainer right in your living room.
The limits of what you could achieve with your smartphone were quickly becoming endless. As Covid-19 continued on a rampant path, people grew more passionate about remaining inside, while still prioritizing their health.
This introduced the popularity of pill and supplement delivery services, online gym memberships, zoom-hosted health appointments, and much more.
With this rise in the use of telehealth, it’s clear that this trend is here to stay. In fact, it’s estimated that up to $250 billion dollars of the current U.S healthcare spending could be shifted to telemedicine.
What can you do?
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- Consider what ways you're able to offer a digital experience to your customers.
- Focus on which aspect of your business can be digitally accentuated the most.
- Offer classes covering subjects your brand can teach your buyers about.
- Start a blog covering the focus of your brand.
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Personalization
As telehealth grows, so does the expectation of personalization from consumers. With the rise of digital platforms adhering to all of our wants and needs, buyers are slowly coming to the conclusion that one size does not fit all.
There is a new trend of personalizing things so that everyone can get what they want, need, and like.
Now, buyers want their purchases tailored more towards them. They no longer want generic hair care for the masses. Consumers want hair care crafted specifically for the hair type and goals. The same goes for all wellness products and purchasing experiences.
As our digital world continues to grow, it’s safe to expect a high rate of individual personalization through telehealth and wellness products.
What can you do?
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- Allow customers to personalize their online experiences.
- Include easy to find website preferences that customers can choose from (dark mode, bigger text, text to speech options, etc.)
- Create a poll to learn what your customers are looking for in terms of customization.
- Add the ability to create an account with saved preferences.
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Digital Storefronts
People and businesses knew that as more and more things became digital in 2020, going digital might be the only way to move forward.
With the pandemic slowing the success of physical storefronts, business owners everywhere began thinking of ways they could offer a contactless and completely digital buying experience. Eventually, as demands from consumers rose,
"20-30% of all businesses transitioned their main presence to an online storefront".
This initial switch wasn’t expected to happen for another few years during the growth of e-commerce, and even so, the change was expected to be gradual.
What can you do?
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- Transition your store to a digital platform A.S.A.P
- Hire a web designer to make the process faster and easier
- Research your competitors and see what they are doing online.
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Increased Delivery Expectations
Once the trend of online shopping reached the corners of the world, new expectations came along with it. In a rush to be the first to make an impact in the e-commerce industry, companies everywhere began offering different promotions, guarantees, and promises.
Advertisements like “Covid-19 Safe”, “Contactless 2-Day Delivery”, and even “24-hour delivery” flooded the internet and email inboxes. As people began to transition, they enjoyed the aspect of what shopping was quickly turning into.
Not only was it safer in times of a global health crisis but it was more convenient than traditional shopping. Consumers quickly took a liking to the new and easy ways to order products, groceries, items, and almost anything else. Eventually, demand grew a little too much.
Many companies struggled to keep up as businesses flocked to supply their customers with the many products they bought at the click of a button. This was due to many reasons, some including lack of staff to complete the abundance of orders and lack of products due to international shipping delays.
Now, businesses everywhere are playing catch up, trying to stay at pace with consumer delivery demands.
As the holiday season grows near, it’s important to backstock your inventory, prepare for a higher spike in orders, and find the staff needed to comfortably fulfill orders.
What can you do?
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- Prepare your inventory with extra shipping supplies.
- Make sure your items, as well as back-stocked items, are stored inside your facility or have safely arrived at your 3PL's warehouses.
- Pre-assemble custom packaging to save time and avoid delay.
- Hire extra workers to help fulfill orders and support your main staff.
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Sustainability
E-commerce is going to have a lot more changes in the near future. First, there will be more shipping demands, more digital shopping experiences, and more personalization. Second, increased consumerism is making the demand for greener practices all the more important.
Buyers are now growing more passionate about greener shopping. This includes cleaner, safer, and more environmentally friendly products and packaging.
"41% of consumers said they would choose a healthier option vs a more effective one".
Additionally, buyers now look for minimal packaging materials, reusable, recyclable, or biodegradable packaging included in their orders, and are even transitioning to companies with greener practices and healthier mission statements.
What can you do?
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- Begin transitioning to eco-friendly packaging.
- Research what your competitors are doing.
- Determine what materials would best suit your brand and impact your customers most.
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Guided by Falcon
After an overview of how the pandemic has changed the wellness industry, it’s safe to say that these changes are here to stay. As time continues, new trends will emerge and current ones will develop significantly.
That’s why it’s important to remain updated on the news of not just the wellness industry, but on e-commerce as a whole.
At Falcon Fulfillment, we’re looking out for business around the world. The ones that may not know how to battle some of these new challenges.
The ones who need a little extra insight on what’s happening in the industry, and the ones who are looking to perfect their game. We are the official guide to any and all e-commerce brands looking to extend their reach and grow their success.
We hope you found this article useful and it helps you steer your business successfully through an everchanging sea of e-commerce uncertainty.
Holiday Shipping: Which Option is Best for E-commerce?
Quarter 4 is here and peak season is already at the doors of e-commerce businesses everywhere. With delivery delays being the largest concern for 38% of consumers, learning which holiday shipping option is best for you will help prepare your company for a successful quarter 4.
Today, we will be discussing holiday shipping and what options there are for your business. We'll guide you through the world of shipping, from carrier information to local insight, as you prepare your company for a proactive and successful quarter 4.
Free Shipping
While free shipping is the best eye candy for customers, it’s no walk-in-the-park for e-commerce businesses. In order to offer free shipping, the delivery price must be paid by someone, somewhere.
Although your customer will enjoy their purchase with free shipping, unfortunately, your carrier will not deliver your packages for free or in exchange for holiday spirit. (It would be a lot cooler if they did).
So, who pays the shipping fees and why is this such a popular option amongst e-commerce businesses?
"84% of shoppers have made a purchase because shipping was free."
We could give you a long, complicated explanation of why a free shipping option is popular and how it's so successful, but, let's keep things clear and simple. Are you ready for this?
Free shipping expenses are paid for by the customer.
We know this might come as a shock but be assured that what you just read is true. To answer your next question, let's talk about how they do it.
Free shipping is in fact, not free. In order to achieve it, customers are met with intriguing promotions to persuade them into spending more in order to receive the reward of free shipping.
In reality, e-commerce businesses are simply increasing product prices or promoting higher-order totals in exchange for free shipping - which is already hidden in the cost of an item or the total amount of an order.
"86% of consumers abandon their carts due to the cost of shipping."
In terms of holiday shipping, a free shipping option is a great strategy that isn't going away anytime soon. If this option would be beneficial for your business or you'd like to learn more about the process of offering free shipping, check out our recent blog article going over 10 ways your company can offer free shipping and how to do it.
Pros and Cons of Free Shipping
Pros
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- A free shipping option reduces shopping cart abandonment.
- Free shipping policies retain current customers and promote new ones.
- Free shipping promotions increase sales.
Cons
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- A more expensive product.
- If shipping rates increase, either the price of your item does too or your company absorbs the inflated costs.
- Switching to budget shipping options could result in a bad delivery experience for your customers.
Flat Rate Shipping
If you're torn between increasing the price of your products or absorbing the costs, there is an alternative for you.
Using a flat rate shipping option, you can choose a precise shipping fee that covers the bulk of your shipping expenses. This will allow customers to pay a base cost for their order and oftentimes, saves your company from spending too much on shipping.
However, if a customer purchases a heavier item and opts for a flat rate shipping option, your company will have to absorb the extra expenses.
How Does Flat Rate Shipping Work?
- Purchase a USPS flat rate box.
- Pack your items and address the box.
- Drop off your package at a USPS office to ship.
- Or use a 3PL to handle all of this. ;)
Pros and Cons of Flat Rate Shipping
Pros
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- Predictable shipping costs.
- Avoid surcharges.
- Included shipping insurance.
Cons
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- You lose the ability to use branded packaging.
- If products are heavier than the flat rate limit, you will absorb the extra expenses.
- For local customers, flat rate shipping might cost you more money than what you save.
Is Flat Rate Shipping Right for You?
A flat rate strategy is a great holiday shipping option for e-commerce businesses with small yet heavy (anything up to 70 pounds) inventory; such as books, monthly subscriptions, etc.
Exact Cost Shipping
Also known as real-time carrier shipping, exact cost shipping is a process where shipping charges are automatically added at checkout. The shipping total will reflect the weight, dimension, and the customer's shipping destination to provide an accurate shipping rate.
This is a simple and transparent holiday shipping option; however, when offered, cart abandonment rates may increase.
How Does Exact Cost Shipping Work?
- A customer makes a purchase.
- Accurate shipping rates are added to the subtotal to reflect the package, weight, and destination.
- Customer pays for order and shipping fees.
Pros and Cons of Exact Cost Shipping
Pros
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- Calculate shipping costs automatically.
- Charge customers an exact amount.
- Drive more international sales.
Cons
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- Increased cart abandonment.
- Cannot be used for promotional purposes.
Is Exact Cost Shipping Right for You?
We suggest carrier-calculated shipping to e-commerce brands that do not have the capacity to include shipping costs into their products. It's ultimately cheaper to use real-time carrier shipping since it prevents you from losing money not just on delivery but also on merchandise.
Same-day, 2-day & Expedited Shipping:
Even while most customers are willing to wait for longer delivery times in exchange for free shipping, order discounts, or even lower environmental impacts, around the holidays attitudes begin to shift. Suddenly, what could have waited before is now a rush to get their holiday gifts in time for Christmas.
When peak season arrives and consumers rush to make last-minute orders, same-day, 2-day, and expedited shipping are often the only options for customers to choose from for their products to arrive on time.
How Does Expedited Shipping Work?
- A customer makes a purchase and pays for expedited shipping at checkout.
- The order is packaged and sent out faster than normal.
- The customer receives their package within 1-4 days on average.
Pros and Cons of Expedited Shipping
Pros
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- Fast delivery.
- Fewer risk of damaged items.
- Increased customer satisfaction.
Cons
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- It can be expensive.
- It takes a company more time to fulfill separate expedited orders instead of fulfilling bulk packages with regular shipping methods.
- Customers cannot edit their orders after a limited time frame.
Is Expedited Shipping Right for You?
Regardless of what kind of e-commerce you are, there will always be a customer than needs their order last minute. Offering expedited options are a great way to satisfy your more impatient customers and keep them loyal to your brand.
BOPIS:
Finally, let's talk about BOPIS: buy online, pick up in-store. In addition to buyers receiving their products faster, local customers can pick up their orders the next or the same day of their transaction if they live close to a distribution center.
This feature is a must-have if you do local business and allow customers to pick up their orders in person. Making your local consumers' purchasing experience easier by offering pick-up alternatives increases their likelihood of making repeat purchases and recommending your brand.
"67% of shoppers in the US have used BOPIS in the past six months."
How Does BOPIS Work?
- A customer makes a purchase & inputs their shipping address.
- You let them know they are eligible for free in-store pickup.
- Customer picks up their order in-store free of charge.
Pros and Cons of BOPIS
Pros
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- No shipping fees.
- Immediate gratification.
- Increased customer satisfaction.
Cons
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- Must have a retail location for pick up.
- More time-consuming for customers.
- Reduces privacy and comfort.
Is BOPIS Right for You?
Buy online shop in-store is a great option for stores looking to appease their local customers. If your brand offers items consistently that buyers would make the commute for then give them the option too!
2021 Holiday Shipping
In the end, choosing your holiday shipping option is important. Finding the best one that fits your brand and what you’re looking for is important, and that’s what we want to help you do. You might even offer different shipping options around the holidays than the rest of the year.
We commit to providing in-depth and valuable information to our readers. If you found this holiday shipping article helpful, we recommend you check out our in-depth 2021 Holiday E-commerce Guide.
Not only do we touch more on holiday shipping, but we also dive deep into various e-commerce topics and concerns, provide over 40 peak season tips and tricks, and provide you the appropriate tools to make your e-commerce business not only nail this year's holiday shipping, but your entire 2021 peak season.
Holiday Shipping with Falcon
We all know that shipping can be a hassle, especially during the holiday season. When partnered with Falcon Fulfillment, we take the hassle out of your hands and work our shipping magic with your e-commerce business to provide exquisite packaging, on time orders, and most importantly, satisfied customers. Make the switch today.
Dropshipping Vs 3PL: Which is the Best Option?
The fulfillment world has many options. E-commerce owners everywhere are asking themselves the same question: “what order fulfillment would work best for me?” We’re here to guide you through the pros and cons of dropshipping vs 3PL partners.
Dropshipping and third-party logistic (3PL) providers may seem to provide similar services, but they are fundamentally different. Learn how the differences between these two fulfillment services and decide which option would benefit your business the most.
What is Dropshipping?
Dropshipping is a method of fulfillment commonly used by small companies and startups because of its low capital needs upfront. The low-cost start is enticing to new businesses because they are not responsible for stock or inventory and can be charged on a per-product basis.
Dropshipping allows a seller to purchase the product directly from a third-party supplier (typically a wholesaler or manufacturer) and have it made and shipped directly to the customer.
Throughout the process, the seller does not have to physically handle any items, nor do they have to worry about fulfillment, inventory, shipping, or other similar issues.
It is commonly used by startup businesses due to its minimal risk, but it is often moved away from after a company scales due to reduced profit margins and lack of control.
Are you looking to grow your eCommerce? Learn how to scale past dropshipping.
What is a 3PL?
The terms fulfillment services and third-party logistics (3PL) are commonly used interchangeably. Larger businesses that sell higher quantities of products typically utilize a 3PL.
These partners essentially manage the entire fulfillment process of their partnered brand. They receive items from manufacturers, store inventory, pick and package orders, kit bundled products, manage customer service, and have essential customization options.
Some of the major reasons why businesses pick a 3PL are higher profit margins and better flexibility and control.
Dropshipping vs 3PL: The Differences
Customer Service
Dropshipping
Dropshipping allows you to buy the products that your consumers have ordered from you in real-time. This eliminates your need to keep inventory on hand and makes it easy to fulfill orders.
However, you are paying another organization to supply the product, fulfill the order, and deliver it to your customer. Customer support is something that dropshippers do not provide and is left up to the individual business.
This means that whatever questions, comments, or concerns your customers have, will fall on your shoulders. Whether it’s about a return policy or an error you didn’t cause, it’s up to you to figure out.
Third-Party Logistics
Order fulfillment is a seamless process when working with a third-party logistics provider. Instead of providing you with an item, boxing it up, and sending it out to your client, these components are slightly altered.
A third-party logistics provider (or 3PL) is often not engaged in manufacturing an item or product. It’s the seller’s obligation to take care of this.
After providing the necessary inventory to a 3PL partner, the 3PL will then take care of the fulfillment process. The whole fulfillment process will require no help on your part aside from providing packaging preferences. They store and ship items to your customer in addition to taking care of many return and customer support requirements.
When you connect with a 3PL, you form a partnership with someone who will oversee and manage your entire fulfillment process from beginning to end. All that is left for you to do is what you do best: create amazing products and translate your passion for them through stellar marketing.
“86% of shippers said the use of 3PL’s has contributed to improved customer service.”
Upfront Payment
Dropshipping
Again, getting started with dropshipping does not require a large investment. Costs are minimal in the beginning to make an account, list your products, and start selling.
This is because money is only exchanged 1). when a customer orders from you 2). when you purchase the ordered items from your dropshipping provider.
This can be done using automatic notifications with some dropshipping supplier, which can manage your money, products, and orders with little to no help on your part.
Third-Party Logistics
Businesses that choose to work with a 3PL partner are those that want to invest in their business. While the upfront payment may be larger, investing in a 3PL can be the smartest choice for a scaling e-commerce business.
Going from self-fulfillment to outsourced fulfillment will ease up time and talent from your team and allow it to shine again in areas that help your business grow. A 3PL partner’s main purpose is to take the entire fulfillment process of a company and do it for them and do it even better.
Fulfillment is such a big process that requires years of expertise to truly succeed at.
“Dropshipping is the entry point for a lot of people to business, e-commerce, and entrepreneurship. It’s the perfect first business.”
Lachlan Delchau-Jones
Scalability
Dropshipping
Scalability is an important aspect when owning a business. Why? Because you want your business to grow, and with growth, comes the need for more space and more hands.
When a seller is dropshipping and their product takes off, it’s hard for a dropshipping provider to scale with said company. This is because a dropshipping supplier only has so much of their own inventory in stock, and they do not work with individual businesses and their own inventory needs. If your provider runs out, so do you.
Third-Party Logistics
Many people look to a 3PL as a viable option for their business because of a 3PL’s ability to scale. 3PL’s have large inventory spaces, facilities, and staff.
All were created in the hopes their clients would scale and require a need for more inventory space as they grow. So, if your business is likely to scale, or if it already has, a 3PL might be a better option to give your company the potential to succeed.
Geography
Dropshipping
When you work with dropshipping providers, you run the risk of geographic scarcity. By this, we mean that dropshipping suppliers often have a single place of operation, where they manufacture and ship orders out around the world.
While this might seem fine, it can actually cause increased delays in fulfillment and shipping time, delivery errors, and shipping prices. If your brand sells internationally or to multiple locations throughout the country, dropshipping might be a slower and more expensive approach.
Third-Party Logistics
By contrast, 3PL’s often have various locations spread throughout the country and sometimes throughout the world. This means that wherever your customers are, there is guaranteed to be a facility close to them. Resulting in faster delivery, cheaper shipping prices, and happier customers.
If you’re selling to a wide range of buyers across the world, a 3PL with multiple locations may be a wise choice.
Bulk
Dropshipping
Lastly, sellers who decide to dropship will quickly notice that the products or items they choose to sell are marked at a lower price than what they’d find personally. This is because the dropshipping provider offers a “wholesale” discount on the items you purchase, to allow you to make a profit while also using their services.
This is great when you have small amounts of items to fulfill and you’re expecting to make a 40-60% profit. After all, those numbers eventually add up, right?
Third-Party Logistics
The difference in buying wholesale through a 3PL is that the more inventory you buy, the bigger wholesale price you’ll have. If you’re fulfilling thousands of orders, it makes sense to buy thousands of items at a cheaper rate.
If you’re dropshipping, wholesale discounts do not increase and the profit would eventually be close to nothing if you were fulfilling a large number of orders.
“91% of 3PL users report their relationships are successful and their work has positive results.”
Dropshipping vs 3PL: Limitations and Benefits
Limitations of Dropshipping
- Cannot scale.
- Often only has one “main” location.
- Sellers cannot purchase items in bulk.
- Sellers cannot forecast holiday availability or shipping times.
- Shipping can be slower and more expensive.
- High competition.
Limitations of 3PL
- Inventory is limited to what you have on hand.
- Seller is responsible for delivering inventory to a 3PL facility.
- Upfront inventment.
Benefits of Dropshipping
- Low or no-cost investment.
- No inventory management.
- Zero need for a physical store.
- Sell one, or ten, no order minimum.
Benefits of 3PL
- Access to experts and experienced partners.
- Ability to focus on other things (simplified internal logistics).
- Scalability.
- Cheaper shipping.
- Faster shipping.
- Houses and manages inventory.
- Multiple locations.
“75% of shippers said the use of 3PL servicess has contributed to overall logistics cost reductions”
Dropshipping Vs 3PL: Which One Do You Need?
Are you considering which one is the best fit for your business? Sometimes it can be a little confusing when deciding where the line falls between dropshipping vs 3PL partners.
However, the answer is simple. If you are a start-up business testing out products, casually selling, locally selling, or selling in quantities of less than 200 a month, dropshipping is the better option for you!
Need a 3PL Partner?
Are you currently dropshipping or independently selling a minimum of 200 orders a month or more? A 3PL might be a better option now that you’re gaining speed.
With various 3PL’s out there, all of them have different requirements, qualifications, and much more. Let Falcon Fulfillment be the one to guide you through the 3PL world and help you decide whether working with a 3PL partner is the best thing for your company.
Case Study: How West Paw Utilizes Falcon Fulfillment To Reach Over 1 Million Dogs Across The World
All images courtesy of West Paw
From Fabric to Famous
In 1996, Montana native Spencer Williams made a decision to purchase a small pet toy company known as Pet Pals, in Livingston, Montana. At 23 years old, Mr. Williams had a goal to produce and manufacture the highest quality and safest products for man’s best friend.
West Paw started out making small, fabric pet toys, and over the past 25 years has grown to become one of the most recognized eco-friendly and sustainable pet brands in the US. 25 years after his initial purchase, Mr. Williams had reinvented the pet industry with award-winning eco-friendly pet toys, beds, leashes, collars, and treats.
West Paw began with a recipe box that contained the names of Pet Pals customers. These customers provided the fuel that West Paw needed to continue its road to greatness.
Key Metrics:
- 3x Future Scale Expectation
- Highest Q3 success with Falcon in 2021
- 40+ countries reached
- 6,000+ US retailers
- 1 Million dogs reached
“None of our successes would have happened without the relationships we formed all those years ago, many of which are still going strong today.”¹
Spencer Williams, CEO and Owner, West Paw.
West Paw is now located in Bozeman, Montana, with another injection molding facility in northern Montana. Between their two locations, they now employ over 100 team members. In August 2021, West Paw celebrated its 25th anniversary and now sells to over 6,000 US retailers and can be found in over 40 countries worldwide – that’s a lot of happy dogs.
Em-bark-ing from Self Fulfillment
From 1996 to mid-2021, West Paw continued to do all of its business in-house. They managed each and every order down to the shipping label. From designing, manufacturing, and inventory to fulfillment and delivery. This process was manageable for quite some time but then orders began outpacing their ability to provide their customers with the exceptional customer service they expected from West Paw. Order delays were getting so backed up they reached up to 11 days around peak times. In June of 2021, West Paw began its search for a recognized 3PL partner to help them keep up with the increased demand for American-made pet products.
Inventory and Scalability
West Paw’s primary motivation for beginning its 3PL journey was the need for storage space and inventory control. As the popularity of their eco-friendly dog toys began to soar, so did their order volume. West Paw’s inventory expanded over time to meet wholesale and direct-to-consumer needs throughout the United States. As their order volume and inventory level grew, available space within their warehouse shrunk.
Aside from needing inventory space, West Paw leaders were also looking for a fulfillment partner with the ability to scale with their company and its success. In the last 3 years, sales have doubled and they expect to see this strong growth continue. That’s why it was important to find an accountable 3PL with the ability to scale with West Paw’s success and increasing inventory needs.
Labor
West Paw’s ability to obtain extra labor assistance during peak times was limited. Because of the labor shortage affecting the US, they struggled to recruit extra hands to support their full-time employees. This resulted in longer delivery times, overwhelmed team members, and an increased chance of fulfillment errors.
As a result, when seeking a fulfillment partner, West Paw prioritized labor benefits. This means they needed a company that not only had a full workforce but had the ability to employ more staff if needed during high season. They needed to know they could rely on someone else to keep their fulfillment process running smoothly, accurately, and on schedule.
Shipping & Location
As more companies offer two-day shipping, West Paw’s customers were seeking faster delivery times. Because West Paw was fulfilling orders from Montana, shipments took on average two days longer to reach consumers on the east and west coasts. West Paw needed a fulfillment partner that could provide quick delivery and accessible warehousing locations.
Lending a Hand to Help Tails Wag
Once the team at West Paw decided what they needed out of a 3PL partner, they began their search. Thankfully, Andy Wunsch (Vice President of Sales & Marketing at West Paw), had researched 3PLs and knew what to look for. It didn’t take long for West Paw to discover Falcon Fulfillment.
Soon Sarah Spartas and Andy Wunsch were on their way from Montana down to Falcon’s corporate headquarters and west coast warehouse in Salt Lake City, Utah. Upon arrival, the team was taken on a tour of the warehouse. They were shown where their merchandise would be received, stored, picked, packed, and shipped. All while offering full transparency and answers to each question the team had for Falcon.
“I’ve been inside of over 100 different warehouses and I can spot what’s wrong with them very quickly. During my tour with Falcon, I couldn’t find anything that was [considered] a red flag”
Andy Wunsch, VP of Sales and Marketing at West Paw.
An Improvement in Labor & Scalability
“In the last two days of our biggest month in history, Falcon processed close to 300 orders. Here in Bozeman, we could have done about ⅓ of that.”
Andy Wunsch, VP of Sales and Marketing at West Paw.
Once West Paw and Falcon Fulfillment had made their partnership official, orders went out quickly and smoothly.
As soon as the merchandise was shipped out of Montana to Falcon’s warehouses, hundreds of orders were sorted and organized in designated areas, where they would soon be delivered out to their furry customers.
West Paw was able to see how easily they could scale their company after watching Falcon integrate their inventory effortlessly and without delay. Additionally, peak times were no longer a problem. Instead of the burden of hiring seasonal workers on top of full-time staff, West Paw is now able to focus on more important tasks while Falcon takes care of labor and holiday staffing.
Faster Shipping & Accessible Locations
From West Paw’s warehouse in Bozeman, Montana, Falcon’s warehouse was reached in less than a day via truck. This alone saved two days of shipping West Paw had previously experienced when shipping to the east and west coasts from Bozeman.
Not only is West Paw experiencing faster shipping, but they’re also able to visit Falcon’s warehouse with ease. Drop-ins ensure full transparency and an in-person look at where inventory is stored, how it’s packaged, and much more.
Additionally, Falcon’s east coast warehouse in Kentucky allows West Paw to efficiently deliver items across the country.
Full Transparency & Speedy Onboarding
West Paw’s onboarding with Falcon Fulfillment went rather quickly. Following West Paw’s inquiry, they were assigned a specific account manager who would guide them through the onboarding process step-by-step and go through the new systems they would be integrating with.
Falcon was able to navigate West Paw through the integration of their older software and Falcon’s newer technology. The transfer was painless and simple.
As told to Falcon Fulfillment by Andy Wunsch, Vise President of Sales and Marketing:
“Onboarding took about 12 weeks. [We were] trying to launch in that time frame before we got into our busy season.
[Using Asana], everything was easily tracked, and all the instructions provided by my account manager were easy to follow.
Customer service teams are available in our portal almost every day, and you know, we’re always learning.
Overall, the onboarding was very speedy. I think Falcon could have gone even faster, but West Paw just couldn’t go as fast.
Our IT team had nothing but compliments for the Falcon IT team.”
Fur to Feathers – Culture Matching
West Paw focuses on sustainability, safety, and high-quality products for dogs. It was important for West Paw to find a partner with matching values.
Falcon Fulfillment’s culture compliments West Paw.
West Paw needed a partner who upholds the same eco-friendly values. As a result, the West Paw team felt confident in Falcon’s fulfillment process. They knew their products would reach their customers with the same love and handcrafted care that previously came from the employees who work at West Paw’s warehouse.
“Falcon [has a] commitment to being eco-friendly and [sustainable], whether it’s solar and water, or how the company treats its employees.”
Andy Wunsch, VP of Sales and Marketing at West Paw.
What’s next for West Paw?
Our favorite pet brand has some fun surprises coming up for this holiday season. Pets around the world will soon be enjoying special treats, toys, beds, treats, and much more.
West Paw is expected to scale threefold over the next couple of years and Falcon Fulfillment is excited to support this force for good in delivering happiness to dogs and pets around the world.
Falcon is devoted to maintaining the success of West Paw and striving to provide sustainable and recyclable toys to pets in every home, in every city, in every country.
Here’s to the success and future prosperity of our wonderful partner: West Paw.
“There’s 100 Million dogs in the United States. We’re reaching about 1 million of them. That means we still have a lot of dogs to go.”
Andy Wunsch, VP of Sales and Marketing at West Paw.
Learn more
Boost your e-commerce business by finding a better order fulfillment partner. See if Falcon Fulfillment is the best fit for your brand.
Free Shipping: Why You Should Offer It + 10 Free Shipping Ideas
Unexpected shipping costs are the top reason for cart abandonment among shoppers. Cart abandonment cannot be eliminated completely. But eliminating unexpected shipping costs can help.
To help you increase your sales, we are going to break down ten innovative methods by which your e-commerce business can offer free shipping to its consumers. We'll go through how you can provide it, how it will affect your business, and whether or not a free shipping option is right for you.
1. Free Shipping on Everything
The simplest method to provide it is to include it with all of the products and purchases. Building shipping costs into your product costs can help you avoid surprise shipping charges and cart abandonment and increase sales.
Buyers will certainly notice this irresistible offer, and it's a wonderful way to attract their attention. However, if your products vary significantly in size and price, this method may wind up costing you more money than you originally planned.
This technique is suited for e-commerce companies that sell small products on a regular basis within a specified price range. Offering free shipping will be more cost accurate instead of a fluctuation.
You may also provide it on all orders by simply raising the overall price of your items and including shipping in the final cost at checkout. By doing this, you're creating the impression of "free delivery" without absorbing the shipping cost yourself.
This method also works best for small and similarly priced items.
If free shipping isn't a sustainable method for your company consider offering occasional free shipping promotions.
2. Minimum Thresholds
This is a very popular option that we see everywhere. By using a minimum order threshold, you encourage your customers to spend more in order to reach the goal of free shipping.
Ex.: Free shipping on all orders over $75
Once a customer reaches a certain amount in their cart, simply queuing an automatic notification that they’re X amount away from free shipping, is almost a guaranteed way to increase your average order value.
3. Certain Times of the Year
Providing free shipping during certain periods of the year is a sensible and strategic move, much like offering discounts during peak season. Providing free shipping (and even bundling it with a minimum threshold or a bundle deal) for a particular period of time may significantly increase your company's sales.
If, on the other hand, you're aware that you have slower selling months, you might consider offering free shipping during the lower times of the year. This will provide your consumers with an incentive to make purchases during off-seasons.
4. Specific Locations
If you're concerned about providing free delivery because of costs in certain locations, you can simply restrict it to particular regions.
Even though international delivery is more expensive than domestic shipping, free shipping may still be a factor. Choosing to restrict your free shipping promotions to areas where you receive the lowest shipping rates, allows you to provide a bargain to your consumers while still spending less money out of pocket.
This might also encourage certain customers to make purchases when targeting their area with limited-time free shipping.
5. Member & Loyalty Programs
Your best customers are the ones you already have.
Introduce a member or loyalty program that includes a shipping discount.
Not only will more people be encouraged to sign up for free delivery, but it will also give the impression that the offer has been restricted to an exclusive "members only" group.
Some businesses opt to charge a fee for membership, while others do not. A loyalty program will encourage buyers to sign up with the promise of free delivery in exchange for their information.
Send them an email with their discount code, a"welcome to the red carpet" message, and voilà - you've gained a new happy email subscriber.
Fun Fact: Did you know that 77% of customers only open promotional emails in search of relevant discounts?
6. Returns
Free shipping on returns may be a fantastic option for a company that deals with often returned items (i.e. clothing stores).
For customers who frequently buy clothing online, it’s understandable that sometimes the fit just isn't right.
Providing free shipping on returns will encourage consumers to purchase items without the anxiety of whether or not they will fit. Simply because, if it's not perfect, exchanging it for the correct one will be quick and easy.
Additionally, this means customers will be more inclined to continue buying with your business because of the simple and easy return procedure.
Fun Fact: Did you know that 93% of customers are inclined to come back to a business that offers hassle-free returns and great customer service, regardless of their buying experience?
7. Campaigns
Running campaigns is a great idea for any business, and free shipping campaigns are often the most successful.
Just like holiday campaigns where you offer promotional deals and bundles, offering free shipping is equally as enticing. Offering free shipping in conjunction with holidays, similar to peak season, can encourage people to purchase during a set time frame.
You don’t have to limit your campaigns to holidays either. Your options are endless.
- Charity Campaign
- Anniversary Campaign
- Back to School Campaign
- Spring Campaign
8. Bundled Items
Bundle your items and receive free shipping!
Sound familiar? A long time has passed since the introduction of bundling promotions, and it seems that they're not going away anytime soon.
First and foremost, it’s critical to understand the sales data of your products. It's equally important to understand which items work best individually and which products perform best when combined.
Consider pairing your top products together as a bundle promotion. By contrast, consider pairing your least popular items with other top products to encourage customers to branch out for a free shipping reward.
9. First Time Customers
Nothing pulls in a new customer like the promise of free shipping.
If site-wide free shipping isn’t for you, consider offering it to your first-time customers. This will not only encourage customers to click that “buy now” button but will also increase your email list and the chance for repeat customers.
10. Number of Orders
Providing free delivery for a limited number of purchases is just as attractive as offering it for first-time buyers.
Ex.: Subscribe for three months and receive three months of free shipping!
This is a great way to encourage customers to sign up for automatic payments, monthly purchases, or recurring orders.
Shipping with Falcon Fulfillment
To understand more about how to utilize shipping methods and integrate Q4 necessities into your e-commerce business, we recommend that you read our in-depth peak season holiday fulfillment guide, which is available for free download here.
Our expertise in the fulfillment and e-commerce industries is something that we take great pride in here at Falcon Fulfillment. That's why we strive to provide our readers with valuable information that e-commerce businesses can put to use right away.
To learn more about how we can optimize your entire fulfillment process, contact us now. We'll be happy to walk you through how simple your fulfillment can really be.
Eco-friendly Packaging: Best Practices for Ecommerce Brands
Eco Expectations
Today, we see a growing rise in the popularity of eco-friendly packaging and eco-friendly fulfillment practices thanks to the growth of waste awareness.
Pollution has become a significant problem with the rise of fast convenience and online shopping.
That's why it's important to consider how your company is contributing to the growing need for eco-friendly practices.
Today, we'll talk about how your company can satisfy your customers' increasing desire to reduce carbon footprints through the use of eco-friendly packaging.
“In 2021, 84% of consumers expected their products to be easily recyclable and produced with recycled material”
According to The Recycling Partnership and SWNS
Why You Should Switch to Eco-friendly Packaging
Aside from meeting the rising demands of your consumers, the planet needs as much help as it can get.
When it comes to lowering your carbon footprint, it's important for companies to enable and encourage their consumers to do the same.
By transitioning to an eco-friendly packaging process, not only will you meet the growing demands of your buyers, but you will also make a considerable impact in protecting the environment.
Customer Standards
Firstly, let's talk about how customer expectations are shifting.
Standards rise year after year as businesses around the world begin to offer eco-friendly packaging and simplified ways of helping the environment.
According to the 2020 Global Buying Green Report, 67% of consumers now consider themselves to be environmentally conscious.
59% said they are less likely to purchase a product that comes in unsustainable packaging.
That’s why it’s important to keep up with ever-growing standards and listen to the expectations of your buyers.
“Sustainability-marketed products grow 5.6x faster than conventionally marketed products.”
According to The NYU Stern School of Business
Better for the Earth
Secondly, eco-friendly packaging is better for the environment, and that's just a fact.
By using eco-friendly packaging materials such as paper, cardboard, bioplastic, and corrugated bubble wrap, you can offer a greener buying experience.
You can also include instructions to reuse or dispose of eco-friendly packaging correctly. This will result in your brand's carbon footprint being reduced, as well as each and every one of your customers'.
Consider the potential impact that a single corporation could have by transitioning as few as 100 customers to a more eco-friendly fulfillment process.
Multiply that by 10, 20, and so on. Each brand could have an enormous impact on the planet by one simple transition.
Better for Customers
By choosing eco-friendly packaging for your ecommerce brand you will decrease the amount of extra packaging delivered to your customers.
By doing so, you will minimize waste on your clients' side while also giving them the sense that they are contributing to something positive.
You can also educate customers on how to reuse their packaging to eliminate waste and amplify the enjoyment of your brand.
Brand reputation
Implementing an eco-friendly packaging method will exceed your consumers' expectations and, as a result, improve the image of your company.
Eco-friendly companies come across as more appealing to customers, and the appeal is steadily growing.
When you offer your consumers a low-waste, environmentally friendly buyer experience, they will reward you with better referral ratings and increased word-of-mouth exposure for your brand.
"Brands that move to sustainable and recyclable packaging gain access to a larger group of consumers who aren’t even considering their products today."
According to the 2020 Global Buying Report
Save Space & Money
Conserving resources will help you save money and free up inventory storage space.
All packaging should be kept to a bare minimum as part of an effort to reduce environmental impact. You can conserve space by downsizing packages and lowering the quantity of material you use.
This will ultimately reduce the amount of storage space needed to maintain fulfillment supplies on hand.
Additionally, as a benefit of decreased shipment weights, you may be able to save money on shipping expenses.
Government Incentives
Lastly, we'll talk about the possible incentives you might have by going green.
Today's government recognizes the importance of environmentally friendly activities among consumers and companies.
As a result, if you switch to a more eco-friendly packaging method, you may be rewarded with government incentives in an attempt to encourage companies that go green.
Tax credits, subsidy advantages, and grants are examples of potential incentives.
How you can switch to Eco-friendly Packaging
When contemplating your transition to eco-friendly fulfillment, it may seem to be a daunting task at first. However, be assured that it's simpler than you think.
- Start by switching to the eco-friendly alternatives of the materials you currently use.
- Reduce the size and space inside of your packaging.
- Find resources like ours for tips on making your consumers' eco-friendly buying experience even more unique.
Transition to Recyclable & Biodegradable Materials
It's important to take into consideration all of the resources you'll need to execute a purchase transaction.
Recognize that there are environment-friendly alternatives to each of the things you now use and that some may even be less expensive than current packaging.
By contacting eco-friendly packaging wholesalers or your fulfillment provider, you can learn more about a variety of environmentally friendly packaging alternatives.
Decrease Package Size
Decrease the size of your packages to the absolute bare minimum.
Ideally, you should choose the smallest box that will adequately hold your item in place. By eliminating unused space, you make it possible to utilize fewer resources, thus lowering possible waste.
Include Recycled How-To / QR Code for Curious Customers
Consider including how-to instructions for your product's repurposing or recycling options.
Explain the process of effectively helping the environment in detail so your customers feel involved and know their efforts are making a difference.
For example, those looking for a unique way to wow their consumers can try printing a QR code on the outside of boxes.
Buyers will scan the code with their phone's camera and read step-by-step recycle instructions straight from their smartphone.
“53% of consumers are actively looking for recycling or sustainability information on their packaging.”
According to the 2020 Global Buying Green Report
Utilizing Falcon Fulfillment for Eco-friendly Packaging and More
It has never been simpler to make the switch to environmentally friendly order fulfillment.
By partnering with Falcon Fulfillment, you gain access to environmentally friendly packaging materials that can be used to minimize your brand's carbon impact.
Set aside the time spent contacting wholesalers, determining what supplies you need, and determining the most cost-effective solution - we'll arrange it all for you.
How to Maintain Shipping Damage Control for an E-commerce Business
E-commerce Shipping Damage Control
If someone approached you and asked: "How do you undertake shipping damage control for your e-commerce business?"
Would you be able to provide a detailed response, or would every instance of damage flash before your eyes?
Today, we'll talk about shipping damage control in an e-commerce company and how to prevent it.
Appropriate Box Sizing
The first step in managing shipping damage control is determining suitable box sizes for your products.
As an e-commerce business, it's your responsibility to ensure the items your consumer purchases arrive safely and in great condition.
While it may seem like a good idea to have space in between multiple items within a shipment - it’s not.
Allowing additional space within a package increases the likelihood of damage throughout the product's journey.
You can package your items tightly by downsizing your packing methods based on what products customers order.
This decreases the chance of being knocked around, bent, or otherwise damaged throughout the delivery process.
Learn more about right-size packaging.
Appropriate Package Filler
Using the right type and amount of filler is equally important to package size.
Although packing filler varies by product, using common practices will lead you in the right direction.
Glass, for example, should be wrapped in bubble wrap and carefully put in a box of appropriate size.
Objects that are less fragile should be packed together using plastics or paper to fill extra space.
Keeping each component in place with proper filler and package size reduces the chance of damage.
Improper Handling Procedures
There are many things that can go wrong when handling products and shipments. Poor handling in-house often causes the majority of damages.
Processing starts when the manufacturer delivers your products, and concludes when products are delivered to customers.
There are many things that can go wrong while items are in inventory.
Stacking pallets, loose items, lack of space, and disregarded safety measures are examples of situations that ultimately lead to an accident or a ruined product.
Keeping your warehouse and inventory organized reduces the risk of product damage.
Did you know Falcon's fulfillment team checks for product damages twice?
Manufacturer Damages
Sometimes shipments coming directly from your manufacturer may arrive damaged.
Although this may be aggravating, there are steps you can take to prevent damage.
Whether your fulfillment process is in-house or via a 3PL partner, it is critical to do quality checks on each and every delivery.
This will ensure no damaged items are stocked into inventory and allow notification of reoccurring issues.
To have the problem fixed, contact your manufacturer when quality inspections are complete and mistakes are discovered.
By frequently communicating with your manufacturer, you can reduce the likelihood of receiving damaged items.
Moisture & Heat Damage
Conventional packing materials do not prevent the long-term harm that temperatures may inflict.
That’s why it's critical to take charge of your inventory conditions before they become an issue.
It's essential to ensure that the area in which your items are stored, is constantly kept cool and dry Whether working in-house or with a 3PL fulfillment partner,
Allowing products to sit under a window, where they may absorb heat and sunshine, may cause damage in the long run.
If your inventory area is damp, your items may become damaged, wet, torn, or worse over time.
Keeping your facilities clean, dry, and cool will help in avoiding numerous shipping damage control setbacks.
Falcon keeps warehouse temperatures between 50 and 70 degrees to keep product quality high.
Pest Contagions
It's important to take measures against pests before they become an issue.
Spraying for insects and other pests on a regular basis helps to keep your facilities clean and pest-free.
As an added precaution, inspect your inventory for signs of pests on a regular basis.
Chewed or torn boxes, rodent droppings, frequent insect sightings, nests, webs, and even faint sounds may all be indicators of pests.
Once identified, problems may be rectified in order to prevent an infestation from developing.
COVID-19 Sanitation Procedures
COVID-19 has brought out new sanitary measures and new procedure standards.
A customer's purchase goes through many hands before it reaches their door. It is more vital than ever to ensure that all orders, products, and shipments are properly sterilized and safe for delivery.
Contact your manufacturer and 3PL to ensure that the product is subject to sanitation measures prior to arriving at your inventory facility.
So, when orders arrive, they are safe and ready for customers to enjoy.
Shipping Damage Control Via Carriers
Damages caused by shipping carriers are a leading concern for e-commerce businesses.
Even if you follow every shipping damage control procedure, and ensure orders have left your facility basically perfect - it still doesn’t promise a perfect arrival at your customer's door.
Here are a few tips you can use to protect your items from shipping carrier damages.
Follow Packaging Guidelines for Shipping Damage Control
Packing your orders correctly is one of the best methods to ensure they arrive at your customer’s door safely.
Remember when we spoke about proper box sizes and snug-fit packaging filler?
Box your orders properly and you'll have little to no room for items to move, break, or bruise.
Fragile Labeling
Another way you can add additional precautions to the safety of your packages is by adding “fragile” or “handle with care” labels to each order.
This will ensure that shipping carriers do just that and apply extra care to your packages.
Now, this isn’t a fool-proof way of guaranteeing the safety of your shipments, but it does offer a visual precaution for considerate carrier staff.
Review Carrier Analytics to Resolve Issues for Shipping Damage Control
If all else fails and you find that your orders continuously arrive damaged to your customer, simply go over your shipping analytics.
By finding which carrier to responsible for the most damage, you can contact them and discuss your concerns, or simply cut them off altogether.
Let Falcon Fulfillment Handle Your Shipping Damage Control
Let the pros at Falcon Fulfillment handle your damage control. That way, you’re free to master other important topics such as eco-friendly packaging or your company’s inventory management system success.
Everything Included in Shipping Damage Control and More
At Falcon Fulfillment, you’ll receive top-quality standards for everything listed above.
This includes proper packaging, waste reductions, proper handling protocols, manufacturer communication, inventory sanitation, temperature control, pest precautions, FDA-certified distribution centers, and approved COVID-19 sanitation procedures. Learn more about working with Falcon.
Everything we’ve talked about today - is what we do every day.
By working with Falcon Fulfillment, you get to transfer the weight of fulfillment from your shoulders to ours, giving you the freedom to grow in other areas of your business.
Sounds good, right? Contact us today and receive a free quote and consultation.
Benefits Of Using An Automated Inventory Management System
We've said it before, and we'll say it again: automated inventory management should be one of your primary concerns when it comes to order processing.
Whether you operate your fulfillment process in-house or through a third-party fulfillment partner, it's critical to use a tracking system that is efficient for your brand and its specific needs.
This post discusses different inventory management systems, their advantages and disadvantages, and the automated method Falcon Fulfillment uses to succeed.
Forms of Inventory Management Systems (IMS)
Inventory is a big concern when it comes to fulfillment and actually sending orders to your customers.
In the beginning, it’s fun and simple, but as inventory and orders increase, you find yourself in a tight and stressful situation.
By understanding various inventory management systems, you’ll be able to make informed and confident decisions for your company’s fulfillment process.
Perpetual Inventory Tracking
A perpetual inventory tracking system is best suited for brands with high sales volumes and several retail locations, such as a pharmacy or a grocery store.
All purchases, refunds, and new product arrivals are monitored electronically and entered into inventory software.
This inventory management system is popular and efficient among high-volume sellers, however, it is costly and restricts real-time data.
So, even though your automated inventory management will be decent, it won't be perfect.
Periodic Inventory Tracking
Periodic inventory management systems are conducted, well, on a periodic basis throughout the year.
This IMS is ideal for businesses that do not sell in large quantities and manual inventory control is not a major burden.
Businesses such as auto dealerships, art galleries, and even food banks would fall under this classification.
Despite its potential for success, this method is most susceptible to human error.
Automated Barcode Inventory Tracking
The use of barcodes to monitor your inventory outperforms all other inventory management systems in terms of accuracy and real-time results.
Inventory tracking is simplified when all products and shipments have barcoded SKUs.
Barcode IMS is ideal for large-volume companies that need high accuracy rates. It’s why health, wellness, and beauty brands generally go with fulfillment providers who have an automated inventory management system with barcode tracking.
We use a barcode automated inventory management system to scan each product and immediately upload it into a transparent database.
This enables you to keep track of your constantly changing inventory in real-time.
The Benefits of Automated Inventory Management with Barcode Tracking
As with any inventory management system, each one has its own set of advantages. However, a barcode inventory management system is quickly becoming superior.
This is due to the fact that it offers two important features: accuracy and efficiency, which are the two most essential aspects in a strong, dependable, and consistent fulfillment channel.
Improves Accuracy by Limiting Human Error
The accuracy rates of a barcode system far exceed other inventory management systems. So, how does it manage to be so consistent?
Falcon is rapidly improving fulfillment standards by utilizing a barcode inventory management system to maintain a 99.9% accuracy rate. Here’s how our barcoding system works:
The picking process is verified for accuracy three separate times: when an order is received when an item is picked, and again when it is packaged and shipped. We are notified when a sale is complete and we then begin collecting the order.
A specific team member will scan the barcode on the order and see what specific items they need to include, and where those items are located.
Our team will select, scan, and pick each item until the order is complete. We verify order accuracy three separate times during the picking process: once when we receive the order, once when we pack the order, and once more as we package and ship it out.
This approach limits mistakes and provides a 0.01% chance of error.
Allows Full Transparency and Maximized Efficiency
A barcode system allows tracking of every order, product, and location in real-time.
By directly linking to your e-commerce shopping cart, we're provided with instant notifications on orders.
Once onboarding is complete, check in and see where your inventory is standing at any given time.
By monitoring each detail of the fulfillment process, we’re able to maximize efficiency and promise our clients a 99.9% fulfillment success.
Why Falcon’s Accuracy Rate is 99.9%
Here at Falcon, we take fulfillment seriously. That’s why we’ve educated ourselves in modern IMS and have chosen the one that is most accurate, cost-effective, and fast.
We carefully train our employees to follow technical procedures and ensure your data is accurate within our database.
At Falcon, we let our software do the heavy lifting so our staff can be more focused, limiting accidental errors.
By utilizing a barcode fulfillment platform, we’re able to consistently outperform our competitors with speed and accuracy.
5 Common Ecommerce Fulfillment Mistakes That Are Costing You Sales
Ecommerce has revolutionized the way we shop. Increasing customer demands and shipping standards require many to find excellent ecommerce fulfillment partners.
While ecommerce is a lucrative segment of retail, it presents some unique challenges. Customers want their orders to be delivered quickly and without difficulty now more than ever.
In this article, you’ll learn the 5 most common ecommerce fulfillment mistakes, and how you can avoid making them in the future.
Why is high-quality ecommerce fulfillment non-negotiable?
Ecommerce order fulfillment is one of the most critical components of a good supply chain.
Without it, you risk shipping mistakes, disgruntled customers, damaged items, or, worst of all, a lost customer.
As a company owner who outsources ecommerce fulfillment, you may be unaware of the errors that are costing you money and keeping you from delivering on your customer's expectations.
Any recurring errors made by your fulfillment provider are damaging to your brand's reputation and future sales.
“Your most unhappy customers are your greatest source of learning”.
Bill Gates, co-founder of Microsoft
5 Most Common Ecommerce Fulfillment Mistakes
We’ve highlighted five essential things to consider when evaluating your existing fulfillment provider to ensure success for your brand and company's future.
1. Inventory
Inventory management becomes more difficult as your company grows and handles more shipments. The ability to correctly plan and manage your inventory is fundamental to running a successful business. It's why many scaling companies use an ecommerce fulfillment service provider to help manage their inventory.
However, businesses frequently make the mistake of selecting a fulfillment provider without a detailed inventory system.
It is essential to find a fulfillment partner who can offer inventory metrics such as items in stock, ready to ship, and the number of units left for sale. To keep your inventory in check, your fulfillment partner should provide you full access to these data points.
Fulfillment providers should also follow inventory management best practices, such as high accuracy, fast dock-to-stock times, and essential warehouse management strategies (FIFO, FEFO, LIFO).
Fulfillment companies have a lot to juggle, but the information contained in their systems is what allows them to do it all.
Tip for success: Monitor your business’s inventory carefully to verify your products are in stock and ready for shipment as needed.
“Communication is at the heart of ecommerce and community.”
Meg Whitman, CEO of Hewlett Packard
2. Communication
Many companies fail at communicating with both their suppliers and their customers. Successful communication ensures costly mistakes are avoided. We’ve outlined some tips for success below.
First, ensure your fulfillment partner is transparent and communicative.
All too often, companies are unable to get responses from their third-party logistics provider, and when they do, care and attention to detail are lacking.
In the long run, finding a fulfillment partner with dedicated account managers, per order billing transparency, and customizable services are priceless.
Maintaining a shared link between you and your fulfillment partner is the best approach to assure accuracy.
Second, communicate with your customers and surpass their expectations.
Retailers have a responsibility to their customers. Products must be delivered on time and budget, whether fulfillment is done in-house or through a 3PL.
As a result, keeping in touch with customers is a priority throughout the ordering, packing, shipping, and delivery processes.
This means giving customers regular updates on where their order is and how close it is to being delivered.
It also includes tracking numbers, easy returns or exchanges, and excellent customer service to improve your client's overall experience.
3. Ecommerce Fulfillment Providers
It's a common mistake to assume that ecommerce retailers can save money on fulfillment by keeping it in-house.
To effectively manage online sales, a company must first address a real-time inventory challenge that involves transporting, tracking, and identifying large quantities of physical goods.
To do this, you have to rely on software and reliable fulfillment providers to get the job done for you.
Your ecommerce fulfillment process is the lifeblood of your business. Yet, fulfillment is often served by providers who lack the right data and experience with your brand.
That's why you should take the time in choosing a partner who will help you deliver your best product.
All third-party logistic companies are different. Each handles various transactions, such as retail, wholesale, Amazon FBA/FBM, direct to consumer, and freight/import.
Lack of flexibility may eventually harm your business if the provider you've chosen can only handle individual direct-to-consumer orders and not bulk shipments.
Using a 3PL that can work with your existing and possible future channels is important.
When choosing a 3PL, look for one that can handle D2C sales as well as retail, wholesale, freight/import, and kitting while minimizing expenses. This way, you can prepare for future growth and scalability without having to worry about fulfillment or inventory speedbumps.
"We've been using Falcon for over a year and they are fantastic. Their team is extremely responsive and always up for new and creative solutions for the needs of our company. Most importantly, though, they are deeply concerned about our customers and getting them their products as quickly as possible."
Chaz Shively, Co-Founder at Legendary Ventures
4. Damage Control
Once you have a customer, the best thing you can do is ensure they stay happy. This means working hard to provide each buyer with exactly what they purchase, at the time they expect to receive it.
Making your customers feel valued can be as simple as giving updates when problems emerge.
When problems do arise, there are two main ways to handle such situations: communicate with the client as soon as possible and provide quality damage support.
You can do this by offering replacements, refunds, or even a credit on their next purchase. Of course, this isn't always easy, but it’s better to try and resolve things directly with the customer than risk losing them and damaging your reputation.
If you want your company to do well, it's crucial to get it right the first time. That's why it's important to know your company’s damage control measures.
If you have issues with your shipping carriers or refund attempts, this can help you determine exactly what went wrong and how to avoid it from occurring again. It also helps identify potential issues early on, avoiding excessive stress that might harm your company's reputation.
5. Inadequate Customer Service
Customer service is a critical component of any organization.
Poor response times, long wait periods, and complicated refund and shipping processes are just a few of the pitfalls to avoid when communicating with customers. Customers will complain and leave negative reviews if ignored or support was unhelpful.
The purpose of customer service is to reduce these "errors" and create raving fans for your brand. Consider customer service as though it were your most important sales channel and place a premium on it.
Having excellent customer support can result in greater sales and retention rates. Unfortunately, not many organizations have the means or personnel to maintain a continual stream of incoming calls or respond to emails in a reasonable timeframe.
With that in mind, improving your customer service should be your top priority.
In conclusion, no matter how good your product or service is, if your customer service is consistently poor, customers will inevitably turn to others.
Falcon Fulfillment might be the right choice for your business.
It's easy to make these costly ecommerce fulfillment mistakes.
It's easy to be unaware of these mistakes, but they are avoidable by identifying them early on.
What matters is to learn from mistakes along the way and use them to improve your business's future path.
Falcon Fulfillment is dedicated to helping ecommerce companies scale. It's why clients choose us for ecommerce fulfillment services. You will gain more revenue per shipment, total billing transparency, customizable packaging, and a better customer experience.
The Secret Tool of Successful E-commerce Brands: An Introduction to Third-Party Logistics and Its Influence on E-commerce
The Growth Rate of E-commerce
In today’s age of digital shopping and third-party logistics, e-commerce businesses are growing at an exponential rate. With this new technological surge of mass online purchases, it’s almost a bad idea not to get involved and take advantage of the new age of D2C transactions.
In this article, you’ll learn the number one secret to succeeding as an e-commerce brand in a saturating, cybernated environment.
First, it’s important to understand why e-commerce revenue has grown 30% over the last 10 years, and a whopping 43% in the single year of 2020. E-commerce has been around since the late 1960s and has evolved from small information exchanges to globally renowned brands like Amazon, eBay, Etsy, and many more. With the rise of these popular companies, small businesses have harnessed the benefits of e-commerce.
Today, it’s abnormal for a company, business, or brand to not have a website that allows you to purchase their items or services digitally.
“63% of consumers go online when buying locally. 46% say they don’t trust a business without a website.”
– According to the Local Search Association and a survey conducted by Weebly.
Timeline of E-commerce
As you can see in the condensed graph above, the e-commerce industry steadily grew in popularity after its initial introduction in the late 1960s; however, you’ll notice that between 1995 and 2020, e-commerce took the entire world by storm.
During the global takeover of COVID-19 and the (what felt like) endless days of quarantine, digital transactions produced over $82.5 billion dollars in a single year.
By contrast, e-commerce in 2019 produced only $360 million. This was a 77% increase in one year of e-commerce growth which was previously assumed to take a gradual 4 to 10 years.
This was an unexpected milestone for the e-commerce industry, and brands and businesses alike should assume that e-commerce will become the number one leading industry for retail sales.
In 2020, e-commerce businesses were met with a demand never before seen. As the pandemic spread, seemingly overnight companies were forced to shift 100% online.
Those who did not have an online ordering infrastructure already in place had to scramble for solutions to stay in business.
After such sudden growth, it’s no surprise that order fulfillment demands skyrocketed for e-commerce companies. This begs the question, what was the constant factor that brought success to e-commerce businesses during this surge in online ordering?
Their secret was simple: they outsourced fulfillment to a third-party logistics partner. Let’s take a closer look at what goes into a seamless and lucrative order fulfillment process.
Fulfillment: Joys, Risks, and Fears
“The top factor in successful e-commerce brands is simple: fulfillment.”
The fulfillment process is meant to be the fun part.
You’ve got your finalized product, polished and ready to ship, neatly packed in custom branded packaging to give your buyer a tailored experience. This is the last step before completing the circle and creating a happy, returning customer.
For start-ups, small businesses, and other brands alike, it’s exciting to receive your first few orders and personally send them off.
You get the satisfaction of making sure each one is filled with love and its own personal pazazz. However, as your business grows, 5 orders soon turn to 100, 100 to 5,000.
A single person or a small team can only spread themselves so thin before the quality of the product that makes your brand unique is too saturated from the lack of care and personalization that each order requires. Throughout your business’s journey you will eventually encounter the non-negotiable processes of fulfillment.
Now, it’s always an option to personally handle the picking, packing, and shipping in-house by yourself or by your designated staff. However, managing all 7 stages of the fulfillment process (receiving, inventory, storage, order picking, order packing, shipping, delivery, and returns), as well as maintaining quality and giving equal amounts of attention to the other aspects of your business may result in a subpar experience and product.
It’s important to partner your brand with a carefully selected team of professionals designated specifically for your fulfillment process.
By working alongside a reputable third-party logistic partner, you’re able to shift the extra stress of fulfillment (which is a separate job in and of its own) to experts trained in the art of transferring your product with quality in mind. From the manufacturer all the way to your customers, a 3PL has your back.
How Partnering with Third-Party Logistics Companies has Impacted the E-Commerce Industry
Since the 1980s (less than 40 years ago), the fulfillment operations for companies throughout the world have been extremely diverse. Over the years, industries emerged to give businesses an extra hand in reaching as many consumers as possible with the highest quality retained.
However, none of these industries have proven to be more successful than the introduction of third-party logistics.
With the integration of e-commerce platforms, the opportunity arose to work with local and foreign 3PL providers that offered unique solutions to the ongoing challenges that companies face when connecting their products to consumers worldwide.
Once introduced, e-commerce fulfillment partnerships have simply improved, now offering designated fulfillment services integrated with leading and robust technology platforms to guarantee a streamlined experience for companies and consumers.
“As of 2013, 86% of domestic Fortune 500 companies use 3PLs for logistics and supply chain functions.”
– According to an Armstrong & Associates report.
Today, e-commerce brands all over the world are using reputable 3PLs to their advantage. Outsourcing e-commerce fulfillment is the industry secret that’s taking the globe by storm, from small businesses to Fortune 500 organizations. With the adoption of 3PLs into e-commerce, many brands experience improved volumes of operational efficiency and seller profitability.
Additionally, third-party logistic providers assist in reducing the overall cost of shipping and delivery time, better order accuracy, and ensure a positive consumer experience. Since its inception in the 1990s, 3PLs have taken the challenges of fulfillment and developed an industry of their own, guaranteeing business owners worldwide that their fulfillment procedures will be managed by experienced teams.
The Future of E-commerce and Third-Party Logistics Partnerships
With e-commerce more than doubling in popularity since 2019, it is expected to continue its climb in the upcoming year of 2022 with little chance of decline in the foreseeable future. As customers race to buy products online, the demand for next-day shipping, sustainable packaging, and personalized orders necessitate a larger need for quality fulfillment with e-commerce brands worldwide.
Without someone to bring quality and close attention to your backend fulfillment, the chances of brand growth remain within the limits of your own capabilities. By partnering with a third-party logistics provider, you give yourself and your brand limitless freedom to create, define, and control each aspect of your business.
The Benefits of Using a 3PL for Your Business
Healthy Profit Margins
By aligning your business with the right third-party logistics fulfillment partnership, you gain the benefit of alleviating the stress of unhealthy profit margins. This decision can save you money on product transportation, warehousing, staffing, shipping, and inventory.
When you partner with an e-commerce fulfillment provider, your cost margin will be considerably lowered, allowing you to realize savings inflation and the financial freedom to reinvest in your company through marketing and product development.
Time Management and Prioritization
When you delegate countless hours of work to a specialized fulfillment team, you will have more time to devote to what is most important to you. The operational element of a business is an area most business owners don’t thrive in.
This is because you have expertise establishing and managing your unique brand, not fork lifting and packing thousands of orders in a warehouse. That is why 3PL’s such as Falcon Fulfillment exist: to take the fulfillment off your plate, so you can have the time needed to focus on the front end of the business, worry-free.
Inventory Freedom
Above all else, inventory is the biggest benefit you’ll receive when working with a reputable 3PL. Shipping, packaging, and returns are straightforward. However, if you don’t have the room for your growing inventory, then you won’t see the profit increase you’re looking for.
When working with a 3PL, you leave the inventory worry to them. Growing your brand and increasing your sales with ease can only happen when partnering with a reputable 3PL that will scale with you.
Customization and Quality Assurance
Working with a third-party logistics provider ensures quick fulfillment and backend satisfaction. To have the best scalable possibilities for your company, you can find one that provides many customization options to tailor your brand’s fulfillment process.
Collaborate with your 3PL partner to incorporate branded shipment packaging, custom promotional inserts, flexible shipping options, and even environmentally friendly packaging.
There’s a 3PL for everything, and one designed particularly for you and your business.
Harness the Power of a 3PL Partner
You will, without a doubt, come face to face with fulfillment sooner rather than later in your business journey.
Although it can be a tough process to tackle, it is critical to understand your options as an expanding business. 3PLs and e-commerce have permanently altered the way individuals do business.
The combination of e-commerce with a modern third-party logistics provider enables you to future-proof your business and be ready for whatever the next technological wave of brand success and consumer demands bring.
To learn more about how Falcon Fulfillment can help you scale your business with better fulfillment, click the button below.