Jamie C. Winters, Author at Falcon Fulfillment

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)

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.

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by Jamie C. Winters

5 Reasons 3PL Services Are Key to Supply Chain Efficiency

Why 3PL Fulfillment Services Are Key to Supply Chain Efficiency

The productivity of the supply chain relies significantly on how effectively a company can deliver its products to the right location at the right time. Due to the growth of e-commerce, businesses are increasingly relying on third-party logistics (3PL) fulfillment services to ensure the efficient operation of their supply chain. Additionally, 3PL fulfillment services offer various strategies, ranging from inventory storage and management to fulfilling and shipping customer orders. These services can aid in maintaining the smooth operation of your supply chain. But why is their importance significant? Here are five reasons why 3PL fulfillment services play a key role in ensuring supply chain efficiency.

Supply Chain Metrics to Track

To understand why a 3PL is key to supply chain efficiency, we must first examine the metrics used to track success. A few common metrics that determine the health and productivity of a supply chain, and they are as follows:

Perfect Order Index – Perfect order measures show you the percentage of how many orders are fulfilled successfully and without any incidents, including inaccurate orders, late deliveries, or damaged items.
Cash-to-Cash Cycle – The cash-to-cash cycle is the time period between when a business pays cash to its suppliers for inventory and receives money from its customers. The simple cash-to-cash calculation formula is:

Inventory Turnover Ratio – The inventory turnover ratio measures the number of times a company replaced its inventory balance across a specific period.

Order Accuracy – The percentage of orders accurately taken, sent to production teams, and delivered successfully to the end consumer.
Supply Chain Cycle Time – Supply chain cycle time is the time it would take to complete a customer’s order if inventory levels were at zero when the order was placed. The shorter the cycle, the more efficient the supply chain is.

Supply chain efficiency is measured in speed, accuracy, and profitability. A 3PL fulfillment service participates in streamlining several aspects of the supply chain, directly affecting its productivity.

5 reasons why 3PL fulfillment services are key to supply chain efficiency.

Optimized Inventory Management

One of the primary advantages of utilizing a 3PL is its capability to enhance inventory control. By actively monitoring your stock levels, it enables you to plan future orders more effectively and maintain inventory balance. When you outsource inventory management to a 3PL, you gain access to flexible storage options. Furthermore, it leads to quicker and more cost-effective order fulfillment, advanced inventory management software implementation, and a decreased need for inventory and fulfillment personnel. This not only prevents overstocking and stockouts but also trims costs, exerting a significant positive influence on your business’s efficiency.

Increased Visibility

Having a clear vision of your inventory, from sourcing and producing to warehousing and final delivery, is necessary to improve your supply chain efficiency. Outsourcing your fulfillment will often give you real-time visibility from dock to door, covering a significant portion of the supply chain process. Increased visibility helps your company discover bottlenecks and inefficiencies that slow down cycle times and cost you money.

Automation and Real-time Data

Automating supply chain processes is one of the most effective ways to improve supply chain efficiency and productivity. Implementing automated inventory management systems helps to improve order efficiencies. This reduces stockouts as well as overstocking. Working with a 3PL fulfillment team gives you access to real-time inventory and distribution systems that would require significant investment to own in-house. Furthermore, this allows a whole suite of automation processes to be deployed, such as; invoice processing, order processing, and even returns management. The best 3PL providers will have implementation guidance to ensure that your sales software works hand in glove with theirs.

Route Optimization

Unsurprisingly, selecting the fastest and most affordable route for product delivery is vital to supply chain efficiency. Working with a solid 3PL partner ensures this is handled for you. Fulfillment companies’ success and profitability hinge on the same metrics; therefore, they will prioritize route optimization for every order.

Optimized Returns Management

Returns management or reverse logistics can often be overlooked in supply chain efficiencies, but that is a mistake. With an average of 20% of all online orders ending in a return or exchange, mismanaging returns can negatively impact the bottom line. In fact, one of the main value-added services offered by 3PL companies is returns management. They can help automate the process of receiving, evaluating, and restocking products when they are no longer wanted or required by a customer.

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

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by Jamie C. Winters

6 Tips to Increasing Average Order Value (AOV)

6 Tips to Increasing Average Order Value

Increasing average order values (AOV) is an essential component of success for e-commerce businesses, as it can significantly boost profitability. Not only does increasing the average order size lead to more income for the company, but it also enhances customer loyalty and satisfaction. Additionally, when customers spend more on one order, the shipping cost is spread out across more items, leading to reduced costs for the business. Accurately forecasting sales and revenue based on average order values improves inventory management and provides insight into crucial investment decisions. This post will discuss average order value (AOV), how to calculate it, and six tips to increase it.

Average Order Value (AOV) Definition

Average order value (AOV) is the average dollar amount spent each time a customer places an order. In other words, it is the average amount of money a consumer spends each time they visit the store.

Average Order Value Calculation
To calculate your company’s average order value, divide total revenue by the number of orders.

AOV is a key performance metric that helps determine consumer purchasing habits. Knowing the AOV is important because it allows you to evaluate your sales and marketing efforts. For example, let’s say that in March, your web store’s sales were 20k, and you had a total of 1k orders. 20k divided by 1k = $20, so March’s monthly AOV was $20. Because of the high cost per acquisition for customers, it is in your best interest to generate the maximum revenue from the consumers visiting your store. This is why profitable businesses implement strategies to increase the AOV as much as possible.

Tips to Increase AOV

There are several strategies to increase AOV and compel your customer to buy more products or more expensive products. Increasing the average order value occurs across the entire sales and marketing funnel. For example, any idea or promotion encouraging a higher dollar amount at checkout will increase AOV. To illustrate, here are a few common tips to increase AOV.

AOV Tips

Offer Discounts for Larger Orders: By offering customers discounts for larger orders, customers are more likely to purchase more items at once to take advantage of the savings.
Cross-Selling: promote additional product add-ons that are common with a specific purchase. For example, promote buying replacement bulbs for LED flashlights, batteries, etc.
Upsell Items: Suggest more expensive items related to the primary items customers purchase. Highlighting best-selling items that are slightly more expensive is an effective strategy to increase AOV. By showcasing these higher-priced options, you can encourage customers to consider upgrading their purchase or adding additional items to their cart.
Bundle Items: Create packages of related products and offer them at a discounted rate. This encourages customers to purchase more items, providing value for their money. To implement this strategy, determine what products work together and create a bundle. Working with a quality 3PL can help you pick and pack effectively.
Offering Loyalty Discounts: If you have a rewards or loyalty program, offer those repeat customers better discounts for higher purchase amounts.
Offer Free Shipping Thresholds: Offer free shipping for customers who meet a minimum spending threshold. This is one of the most effective strategies for increasing AOV. However, you might think offering free shipping will cut your profit margins, which is possible if you don’t carefully calculate. To prevent this, here is a formula to help bake the shipping costs into your product pricing, so you don’t lose money!

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

How working with a 3PL can help increase AOV

Your shipping strategy will play a massive part in the success of increasing your AOV. Working with a quality 3PL can ensure your company offers the expedited shipping options that consumers desire. Additionally, you benefit from lower shipping costs due to their relationships with multiple carriers and high-volume discounts. Lastly, working with a 3PL with multiple distribution warehouses will allow your company to lower shipping costs because products travel shorter distances to customers. Talk to one of our agents today if you want to learn more about how Falcon Fulfillment can help your business grow.

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by Jamie C. Winters

7 Tips to Make Your E-commerce Business More Sustainable

Make Your E-commerce Business More Sustainable

Making an e-commerce business more sustainable is not only a great way to reduce your environmental footprint but also enhances the shopping experience for your customers. For example, a 2020 consumer survey conducted by McKinsey revealed that 60% of respondents were willing to pay more for brands that utilize sustainable packaging. Moreover, the sustainability trend continues to gain momentum, especially among younger buyers.

According to Insight, nearly 90% of Gen X consumers said they would be willing to spend an extra 10% or more on sustainable products, compared to just over 34% two years ago. Fortunately, you can take plenty of simple steps to make your e-commerce business more sustainable and eco-friendly, accordingly here are 7 tips to make your e-commerce business more sustainable:

1. Choose eco-friendly packaging

To begin with, use eco-friendly packaging materials such as cardboard boxes, recycled paper, and biodegradable packing peanuts. This not only reduces the amount of plastic and other non-recyclable materials used in e-commerce packaging but also promotes sustainability. For instance, here are some of the most popular eco-friendly packaging alternatives:

Compostable materials – any packaging that will decompose naturally in under 180 days in an at-home composting environment is considered compostable. One of the most popular varieties is compostable mailers.
Recycled materials – make good use of plastics already in circulation by reusing mailers or selecting products made out of existing resources.
Corrugated packaging – good old-fashioned cardboard boxes made of corrugated materials are durable, reusable, strong, and biodegradable.
Cellulose packaging – Cellulose packaging is made from natural sources like hemp, wood, and cotton. The material is biodegradable and compostable, making it a sustainable alternative to plastic.
Green cell foam – Green Cell Foam is made from US-grown corn, is certified compostable in the backyard and industrial facilities, and can even be dissolved in a sink for safe and easy disposal.

2. Offer eco-friendly or carbon-neutral shipping

Carbon-neutral shipping is where the carbon dioxide produced throughout the shipping process nets zero. Carbon dioxide is still likely produced, but the emissions are reduced or offset. Look for shipping services that offer carbon-neutral shipping and other eco-friendly options. This will reduce your carbon footprint and make your business more sustainable.

3. Use energy-efficient technology

Invest in energy-efficient computers, servers, and other technology to reduce energy consumption. Many warehouse management technologies minimize energy usage and improve efficiency. A few energy-efficient technologies include motion-censored lighting, AI-powered conveyor systems, and vertical retrieval machines. Implementing energy-efficient technology will reduce your carbon footprint and save money in the long run.

4. Invest in carbon offset programs

A carbon offset refers to a reduction in GHG emissions – or an increase in carbon storage used to compensate for emissions occurring elsewhere. Not all offset programs are created equal. Companies that do not have the means to be completely carbon-neutral with their existing protocols may consider investing in reforesting, solar farms, etc., to offset their carbon dioxide contributions. According to Treehugger.com, these are some of the top carbon-offset programs to partner with in becoming sustainable.

5. Reuse and recycle materials

Whenever possible, reuse and recycle materials instead of throwing them away. This includes sourcing recycled materials when possible and using packing materials that can be reused or recycled. This will help reduce your waste and save you money in the long run.

6. Choose sustainable suppliers

Research and look for suppliers that use sustainable materials and processes. It can feel overwhelming to sort through the myriad of vendors and suppliers available but consider the following steps when initiating your search for sustainable partners:

Define what sustainability means to you and your company
Ask tough questions. i.e., where do your raw materials come from, what management firms determine their eco-friendly status, do they offer carbon-offset programs, etc.
Look for sustainability credentials
Use a sourcing tool like – Common Objective.

Also, consider checking out the US Chamber’s post about “How to find a sustainable partner.” Partnering with a sustainable supplier will help ensure your products are made with the environment in mind.

7. Educate your customers

Make sure your customers are aware of your sustainability efforts. This includes informing them of how they can reuse or recycle packaging materials. Many customers don’t realize they can use their packaging to make a return (even plastic mailers), so educating them to improve your eco-friendly efforts is vital. Additionally, educating customers about your sustainable progress will help them understand why they should choose your business over others.

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

If you’re ready to start the transition or have questions, contact us to learn more about our services.

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by Jamie C. Winters

5 Technologies To Look For In A 3PL

5 Technologies to look for in a 3PL

Partnering with a tech-forward 3PL is vital for any business that wants to stay competitive in today’s ever-changing market. A tech-forward 3PL can provide companies with the latest technologies to remain efficient and successful. This can include cloud-based logistics management, automated inventory management, warehouse management systems, and more. Leveraging these technologies can help companies reduce costs, increase efficiency, and improve customer service. A tech-forward 3PL can also help companies scale their operations and make it easier to manage their supply chain. This post will discuss 5 essential technologies to look for in a 3PL.

Benefits of partnering with a tech-forward 3PL:

Reduce errors and save time
Make data-driven decisions vs. gut feelings
Improve customer satisfaction

5 types of technologies to look for in a 3PL:

Omnichannel E-commerce Integrations

3PL partners with robust integrations offer your customers an authentic omnichannel fulfillment experience. Having a partner with a genuine omnichannel approach will ensure your clients have a seamless purchasing experience no matter where they decide to buy. Investigate which platforms and marketplaces have turnkey integrations or provide a dedicated account specialist to link all sales, delivery, and customer service programs.

Warehouse management systems

A warehouse management system (WMS) is essential for 3PLs (third-party logistics providers) to manage their day-to-day operations. It tracks inventory, optimizes the warehouse layout, and provides real-time visibility into order and shipment status. WMS simplifies 3PLs’ supply chain operations and enables them to deliver goods and services faster, improve customer service, and reduce overall costs. It also helps gain visibility into inventory and warehouse operations, allowing customers to make informed decisions quickly. Furthermore, WMS provides 3PLs with the necessary tools to keep up with ever-evolving customer demands and remain competitive in the logistics industry.

IN-HOUSE TECH TEAM

Our In-House IT Department distinguishes us from other fulfillment centers that outsource development.

Automated inventory management systems

Among the five technologies to look for in a 3PL, an automated inventory management system is perhaps the most essential. This system can significantly streamline the inventory tracking process, providing real-time updates on stock levels, estimated delivery times, and other crucial information. Furthermore, it helps manage orders, ensuring that customers receive their purchases promptly and that inventory is handled accurately. Additionally, automated inventory management systems reduce the risk of stock-outs, which can otherwise lead to lost revenue, frustrated customers, and inefficiencies. By partnering with a 3PL that utilizes an automated inventory management system, an e-commerce business can ensure they always have the right amount of stock on hand to meet customer demand.

Automated order fulfillment system

Utilizing automation in order fulfillment helps eliminate costly errors and delays associated with manual processes, resulting in improved customer service and satisfaction. Automated order fulfillment also increases scalability and flexibility, allowing 3PLs to manage and process orders more efficiently and cost-effectively. The system can be multifaceted with several integrated technologies or a singular system managing multiple aspects of the fulfillment journey. Whether it is a proprietary system or several integrated programs, automation technology like this is an essential component of tech-forward 3PLs.

Returns management technology

Leveraging returns management technology to streamline returns and exchanges has become vital to e-commerce operations. This technology is essential for ensuring customers are satisfied, and their returns are handled quickly and efficiently. By leveraging automation and tracking systems, retailers can manage their returns and reduce their associated costs. Furthermore, retailers can track and analyze their return policies, allowing them to make informed decisions.

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

Talk to one of our specialists today if you want to learn more about how we can help your brand streamline order fulfillment.

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by Jamie C. Winters

Taxing E-commerce Delivery Fees for Road Repairs

States Propose Taxing E-commerce Delivery Fees for Infrastructure Funding

As e-commerce continues to grow, so does the volume of packages delivered across the United States. This surge has caught the attention of many state governments, which are exploring new ways to generate revenue. One emerging trend is the consideration of taxing e-commerce delivery fees to fund road repair and infrastructure projects. This move could significantly impact various aspects of the supply chain, including third-party logistics (3PL), fulfillment services, and shipping and delivery operations.

The Growing Interest in Taxing E-commerce Delivery Fees

States like Colorado, Minnesota, and Washington are at the forefront of this new initiative. These states are exploring the potential of a delivery fee tax, where a small fee is added to each e-commerce transaction. The revenue generated would then be allocated to road repair and other infrastructure projects. Colorado was the first state to implement such a fee in 2022, and it has proven to be a lucrative revenue stream. Minnesota followed suit, and now other states like New York, Ohio, and Nevada are considering similar measures.

The motivation behind this move is clear. As traditional revenue streams like fuel taxes decline, states are searching for alternative funding sources. The rise of e-commerce provides a new avenue for taxation, especially as last-mile delivery becomes increasingly prevalent. The rapid growth of e-commerce fulfillment has led to a corresponding increase in delivery vehicles on the road, contributing to wear and tear on public infrastructure. Therefore, taxing e-commerce delivery fees is seen as a fair way to offset these costs.

Impact on Fulfillment Services and Logistics

The introduction of taxes on e-commerce delivery fees has far-reaching implications for various sectors, particularly fulfillment services and third-party logistics (3PL) providers. These entities are responsible for the warehousing and distribution of goods, order fulfillment solutions, and inventory management. A new tax could lead to increased operational costs, which may be passed down to consumers.

One of the most affected areas could be last-mile delivery, a critical component of the e-commerce supply chain. Last-mile delivery is often the most expensive and time-consuming part of the delivery process. The introduction of new taxes could further complicate this segment, requiring companies to reassess their pricing strategies and logistics plans. Moreover, the need for order tracking and management becomes even more crucial, as companies strive to maintain transparency with their customers.

Third-party logistics (3PL) providers, in particular, may need to innovate and optimize their operations to mitigate the impact of these new taxes. This could involve exploring cross-docking techniques, enhancing inventory tracking software, or investing in warehouse automation. Companies may also look into freight rate negotiation and freight consolidation to reduce costs. In some cases, the added financial burden may prompt businesses to consider dropshipping solutions as an alternative, allowing them to bypass warehousing altogether.

Looking Ahead

As more states consider the taxation of e-commerce delivery fees, businesses involved in the e-commerce supply chain must stay informed and prepared. The landscape of supply chain management is evolving, and companies need to adapt to new regulations and market conditions. Whether it’s through optimizing order fulfillment metrics and reporting, enhancing inventory forecasting, or exploring new scalable fulfillment solutions, the key to success will be flexibility and innovation.

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

For any questions on how these taxes could impact your business, reach out to Falcon Fulfillment – your partner in navigating e-commerce fulfillment challenges.

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by Jamie C. Winters

How to Seamlessly Switch 3PL Providers

Switching third-party logistics (3PL), providers can be daunting, but it is sometimes necessary for companies looking to optimize their supply chain. You may have begun to notice your existing provider is unable to meet your growing business needs. This indicates that it might be time to consider an alternative logistics partner. However, switching 3PL providers involves several factors, from cost-effectiveness to service quality, so it is important to take the time to find the right provider for your business. It is necessary to thoroughly investigate your new 3PL partner and confirm the transition to a new partner won’t cause significant business delays. You can ensure a seamless switch to your new 3PL provider by following the steps outlined below.

When is the right time to switch 3PLs?

While there is a truckload of reasons you may decide to switch providers, there are a few common red flags that will indicate it is time to begin switching 3PL providers. They are as follows and in no particular order:

Consistent mistakes – Mistakes are bound to happen, so the issue is more about the consistency of errors. If your provider gives excellent service 99% of the time with an occasional mistake, that is life. However, if the pattern of incorrect orders, mislabeled addresses, damaged products, missed delivery deadlines, or lost products happens regularly, it’s time to switch.
Reactive vs. Proactive – The logistics industry changes rapidly, and your provider should consistently improve. A reactive company makes improvements once there is a problem and is slow to adopt new technologies and processes. A proactive logistics provider invests in new strategies and products that streamline fulfillment and improve customer service before they become problematic. If your provider hasn’t improved their infrastructure or customer experience lately, it is likely a reactive organization.
Old or Segregated Technology – Whether the technology your provider is using is old or simply unable to integrate with your modern sales system, it is time to find a new provider. Having obsolete technology will slow down not only the growth of your business but also the speed at which you can solve fulfillment problems.
Struggling to Scale – Businesses can often easily handle fulfillment in-house when launching. However, once they hit a pivotal threshold where they need to outsource orders, using a smaller fulfillment company can be tempting. It is crucial to evaluate your growth plans because you can quickly outgrow your 3PLs capacity and have to make another jump. If your existing provider struggles to scale with your growth, it is time to consider alternatives.

Timing Your 3PL Switch

Besides the red flags triggering a switch, selecting a slower season in your sales cycle is equally essential. In other words, you don’t want to attempt to switch 3PL providers during your busiest season. The process to switch providers can take as long as several months and as short as a few weeks. Falcon Fulfillment provides our clients with dedicated account managers and onboarding specialists, so switching 3PL providers is as seamless as possible.

Following these steps ensures your switch to a new 3PL provider goes as smoothly as possible. Researching potential providers, comparing them side-by-side, negotiating your contract, and creating a transition plan will ensure that your switch to a new 3PL provider is seamless and successful.

Steps to complete before switching 3PL providers

Clarify your business needs

In order to find the best 3PL partner, it is vital to be clear on your current and future business needs. Spend some time evaluating how your existing provider is falling short and what services, communication cadence, scalability, and costs are needed for your success. This is the first step because it will lead your investigation and evaluation of new 3PL providers.

Review your existing contract

Unquestionably, the best time to switch providers without additional hassle is at the end of your contract. However, sometimes the service is subpar so dramatically that it is worth the headache. Regardless, it is important to review the terms of your existing contract as you search for a new 3PL partner. The contract should outline cancellation procedures, fees associated with canceling, and if any current breaches of service would nullify the agreement. Furthermore, reviewing your contract will highlight issues you want to be addressed or remedied with your new fulfillment partner. Be informed and prepared to negotiate a favorable new contract when the time comes.

Interview potential partners

Interviewing potential 3PL partners is crucial to finding the best match because they become an extension of your brand. The best 3PL companies look at their relationships with their clients like business partners rather than clients. When their customers succeed, they succeed and when sales increase, their invoicing increases. When interviewing, there are a few key questions to determine if they are the right fit.

Questions to ask

How are you different from our existing provider? Have a clear idea of what your expectations are when switching fulfillment companies. In other words, know what you are looking for and be direct in asking if the new fulfillment team has the capabilities to meet your needs. Most fulfillment service providers do the basics of distributing products, but how do they go above and beyond the basics? How flexible are they as you scale up and down seasonally? Do they manage returns and customer service? What is the structure of their pick and pack fees? How clear and transparent is invoicing? These are just a few ideas to get you started.
How easy is it for your technology to integrate with their platforms? One of the benefits of partnering with a 3PL is using their software. Often you can utilize modern shipping, inventory, and returns management programs without additional investment. That being said, it is crucial to determine if your existing technology is compatible with the systems they currently use. Beware of 3PL companies that say, “Oh, I am sure we will be able to have them integrated.” This is a red flag. If they have never heard of the systems you use or vice versa, running tests before you sign a contract is essential.
Where are their distribution centers located, and are there expansion plans? One of the greatest benefits of partnering with a solid 3PL is due to leveraging multiple shipping sites. This allows your business to lower shipping costs and improve delivery speeds. Depending on where your primary customer base is or where you plan to launch can determine which 3PL company will best suit your needs.

Review your supply chain.

Once you have interviewed new 3PL providers, it is time to review your supply chain and determine new transit times. Depending on where the new centers are located will impact order and delivery timelines. In addition, make sure to fully understand and follow your new providers receiving protocols to minimize delays or complications. Most customer-focused 3PL providers can assist in reviewing your supply chain and guide you on making further order adjustments.

Slowly begin the transition to the new provider.

While it might be tempting to cut ties with your existing provider and ship all your inventory to the new 3PL immediately, that could be a recipe for disaster. The prudent way to transition is a slow progression whereby you move all new orders to your new provider and continue to fulfill orders through your existing provider until you have adequate stock levels and processes to make the switch. This gradual transition helps to prevent stockouts and backorders.

Keep your customers informed.

No transition is without its complications. This is why it is vital to keep your customers informed of the changes and any new processes they should be aware of, including shipping charges, delivery times, and liquidation of old products. After all, making an order fulfillment change can also allow you to make some product changes as well. Share the good news with your customers not only to keep them informed but to get them excited! Switching 3PL providers will likely give your business more options for your customers, like international shipping or 2-day delivery, etc.

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

Seamlessly switch 3PL providers with Falcon Fulfillment

Falcon Fulfillment specializes in customer-first logistics service. Every one of our clients have a dedicated account manager to help with onboarding, implementation, and ongoing customer support. We offer additional value-added services such as; kitting, returns management service, supply chain management, custom packaging, and more. Our in-house tech teams ensure that software programs can integrate seamlessly and provide a smooth customer experience. Furthermore, Falcon has the industry experience and relationships to provide a personalized experience without losing national level scalability.

Seamlessly switching 3PL providers can be daunting, but it doesn’t have to be disruptive. By carefully reviewing your business needs, interviewing new partners thoroughly, and taking gradual steps, you can transition your order fulfillment to a new partner efficiently and effectively. Learn more about how Falcon Fulfillment can help make your transition effortless, talk to one of our agents today.

If you’re ready to start the transition or have questions, contact us to learn more about our services.

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by Jamie C. Winters

5 Habits of Successful E-commerce Businesses

Habits of Successful E-commerce Businesses

E-commerce is snowballing, with more than 9.1 million global online stores. In this landscape, the most successful businesses focus on and implement similar strategies. While this list isn’t exhaustive, these habits of successful e-commerce businesses strategies are common among some of the most profitable online companies. To make your business stand out, modeling the practices of successful e-commerce businesses is necessary. In this post, we will discuss 5 habits of successful e-commerce businesses.

Automation

To implement automation strategies for e-commerce success, consider how automation can improve customer experience. This involves automating customer service inquiries, setting up automated reminders to encourage repeat purchases, or sending automated emails to provide order updates. Now, let’s explore some of the most common marketing automation strategies:

Sending automated welcome emails
Automated cart recovery (abandoned cart reminders)
Win-Back emails to get subscribers re-engaged
Automate customer feedback collection

Look for opportunities to automate inventory management, shipping processes, and product discovery. Automation of these processes can help streamline operations and improve customer experience. Additionally, use analytics to track success of automation strategies and adjust accordingly.

Collaborate and Outsource

It is common for e-commerce owners to get nervous about collaborations. However, they believe that if they drive traffic to other companies, customers won’t have enough resources left to buy their products. While driving traffic to your direct competitor might do that, other symbiotic collaborations have the opposite effect. An excellent example of an ideal collaboration is Black Milk Clothing and Solestruck. Black Milk Clothing sells clothes for people who want to stand out. Their fashion line nods to niche horror films, Pokemon, and other cult-classic imagery. In a successful collaboration, they teamed up with Solestruck, a funky female-owned shoe company, on a few photo shoots, and people started asking where they could buy the shoes. This collaboration was a win-win for both brands. The key is to find mutually beneficial collaborations. To get you started, here are some easy collaboration ideas:

Cross promotions
Social media giveaways and influencer campaigns
Subscription boxes with multiple partners
Creating (topic clusters) with other retailers in similar or complementary industries

The other aspect that rings of collaboration is outsourcing business operations that are not part of the core offering to other professionals. By delegating these responsibilities to experts in that field, you free up time to focus on core competencies of the business, such as creating new products, refining customer offerings, and building marketing campaigns that singularly target your customer avatar. Now, let’s delve into the types of outsourcing that the most successful entrepreneurs engage in:

Social media management
Website design and development
Warehousing
Inventory Management
Order fulfillment
Customer service
Returns management

Track and Utilize Data Analytics

You must track the data. Regardless of whether you sell hand-poured candles or reusable baby diapers, data is crucial for making informed decisions. Successful e-commerce businesses have a habit of monitoring data and utilizing it effectively to refine their business processes. Nevertheless, it can be daunting to consider all the data points vital to business success. To help with this, here are some of the top metrics that e-commerce businesses should track:

Customer Acquisition Cost – Simply put, this is the amount of capital it costs to acquire a new customer
Average Order Value – This is the average amount customers are spending at one time in your store
Sales Conversion Rate – This is the number of customers who made a purchase compared to the total visitors to your store

Other Metrics To Measure

Shopping Cart Abandonment Rate – This evaluates the number of customers who add a product to their cart but fail to complete the purchase. Tracking this metric can provide insight into troubles or difficulties with the purchasing process.
Top Products Sold – Tracking the most popular products is essential to profitability. Best sellers should be promoted and carefully ordered to minimize stockouts.
Return Rates – This calculates how many products sold are being returned or exchanged.
Regular Inventory Snapshots – Tracking how much inventory you have left at the end of a specific period helps you develop a cadence of reordering to limit overstocking and understocking.

There are so many more metrics that can be tracked and evaluated. However, it’s essential to recognize that data fatigue is a real issue for many owners. Instead of getting overwhelmed by all the available reports, narrow down what is vital for your business. Decide on the information you currently need to make better decisions. Focus on tracking and utilizing those metrics first, and then, you can gradually expand your usage of data and analytics.

Focus on Customer Experience

According to Forbes, “Customer experience is today’s business benchmark.” In this ever-evolving landscape, it’s crucial to prioritize your customers. They now demand more than just a transactional relationship with a brand; they seek a complete experience. This encompasses everything from memorable unboxing experiences to hassle-free return policies. Successful e-commerce businesses continually evaluate and enhance the customer experience. Here are the key aspects to consider:

Seamless user experience on your website – This implies that your website should be user-friendly, with fast loading speeds and visually appealing design. Remember, investing in high-quality product photos is worth far more than a thousand words – it’s worth a thousand dollars!
Secure and varied payment methods – Offering multiple secure payment options enhances customer satisfaction.
Excellent customer service – Gone are the days when part-time customer support sufficed. To stand out in a competitive market, you must be ready to assist your customers when they need it. While around-the-clock call center support may not be necessary, having systems like chatbots and FAQs readily available is a must from the moment you make your first sale.
Implement Customer Loyalty Programs – Rewarding customers for their purchases and encouraging them to return is easily achieved through customer loyalty programs.
Provide Seamless Omnichannel Experience – Customers now expect brand consistency across every platform. Ensuring a seamless omnichannel experience not only fosters brand loyalty but also builds trust in your company.

Experiment and Test

One of the most vital habits of successful e-commerce businesses is they are not afraid to experiment and test new things. Innovation in any industry comes from trial and error. Here are some common forms of business experimentation:

A/B Testing – Testing two versions of the same material
Pilot – A trial that would help test a proof of concept to see if you should go further with it
Mockups – A representation of the look and feel of a user interface
Quantification – Asking an audience to rank and rate things to quantify their thoughts into data

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

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by Jamie C. Winters

Small Business E-commerce Growth: Navigating Headwinds

Navigating Headwinds and Seizing Opportunities – Small Business E-commerce Growth

The business landscape is evolving rapidly, presenting small businesses with unique challenges and opportunities. Economic headwinds persist, yet the potential for small business e-commerce growth shines brightly. Let’s delve into the current state of small business e-commerce, examining the obstacles they face and the strategies they’re employing to thrive in an increasingly digital marketplace.

E-commerce: A Lifeline for Small Businesses

Despite economic uncertainties, small businesses are increasingly embracing e-commerce as a vital growth channel. The shift towards online shopping, accelerated by recent global events, has created new avenues for expansion. Many small business owners now recognize the potential of e-commerce fulfillment to broaden their customer base and boost sales.

However, capitalizing on this small business e-commerce growth isn’t without its hurdles. From mastering order fulfillment solutions to navigating the complexities of shipping and delivery, small businesses must adapt swiftly to remain competitive. Fortunately, a variety of tools and services are available to support their success in the digital marketplace.

Navigating the Headwinds

Small businesses must contend with several significant challenges:

Economic Volatility: Inflation and fluctuating consumer spending patterns create an unpredictable business environment.
Supply Chain Disruptions: Global events continue to impact supply chain management, affecting inventory and delivery times.
Increased Competition: As more businesses move online, standing out in a crowded marketplace becomes increasingly difficult.
Technological Adaptation: Keeping pace with rapidly evolving ecommerce technologies and platforms can overwhelm small business owners.

Despite these obstacles, many small businesses are finding innovative ways to overcome these challenges and drive small business e-commerce growth.

Strategies for E-commerce Success

To capitalize on e-commerce opportunities, small businesses are adopting various approaches:

Embracing Third-Party Logistics (3PL): Partnerships with 3PL providers streamline warehousing and distribution processes, allowing focus on core business activities while ensuring efficient order fulfillment.
Optimizing Inventory Management: Robust inventory tracking software and vendor-managed inventory (VMI) systems help maintain optimal stock levels and reduce costs.
Enhancing Shipping and Delivery: Offering same-day and next-day delivery options, as well as international shipping, helps small businesses compete with larger retailers and expand their customer base.
Leveraging Multi-Channel Fulfillment: Selling across multiple platforms and utilizing multi-channel fulfillment services increases reach and sales potential.
Implementing Reverse Logistics: Efficient return merchandise authorization (RMA) processing and return handling improves customer satisfaction and loyalty.

Technology: The Enabler of Small Business E-commerce Growth

Technology plays a crucial role in facilitating small business e-commerce growth. Specifically, cloud-based warehouse management systems (WMS) and transportation management systems (TMS) are becoming increasingly accessible. Consequently, small businesses can optimize operations and compete more effectively with larger enterprises.

Advancements in fulfillment center automation are helping small businesses improve order accuracy and quality control while reducing labor costs. These technological solutions level the playing field, allowing small businesses to offer services previously only available to larger companies.

Expanding Horizons: International Opportunities

For many small businesses, international expansion represents a significant growth opportunity. Cross-border e-commerce allows small businesses to tap into new markets and diversify their customer base. However, this expansion comes with its own set of challenges:

Customs Brokerage: Navigating international shipping regulations and customs requirements can be complex.
Freight Forwarding: Managing international shipments efficiently and cost-effectively is crucial for success in global markets.
Currency Exchange: Dealing with multiple currencies and exchange rate fluctuations adds another layer of complexity to international sales.

Despite these challenges, many small businesses find success in international markets, thanks in part to the support of global shipping and logistics partners.

The Power of Analytics and Reporting

As small businesses navigate the e-commerce landscape, data-driven decision-making becomes increasingly important. For instance, order fulfillment metrics and reporting tools provide valuable insights into business performance. As a result, small business owners can identify areas for improvement and optimize their operations.

Key metrics to track include:

On-Time Delivery Rates
Order Accuracy
Inventory Turnover
Customer Satisfaction Scores
Fulfillment Cost Analysis

By closely monitoring these metrics, small businesses can continually refine their strategies and drive small business e-commerce growth.

The Future of Small Business E-commerce

The potential for small business e-commerce growth remains strong. While challenges persist, the opportunities presented by e-commerce are too significant to ignore. By embracing technology, optimizing operations, and partnering with the right service providers, small businesses can position themselves for success in the digital marketplace.

The key to success lies in adaptability and a willingness to embrace change. Small businesses that can navigate current headwinds while capitalizing on e-commerce opportunities will be well-positioned to thrive in the years ahead.

The road ahead may be challenging, but the potential for small business e-commerce growth is undeniable. By leveraging the right strategies, technologies, and partnerships, small businesses can overcome obstacles and seize opportunities presented by the digital economy. As the ec-ommerce landscape continues to evolve, those willing to adapt and innovate will succeed in this dynamic and exciting market.

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

The future of small business e-commerce is bright, and those who seize the opportunity now will reap the rewards in the years to come.

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by Jamie C. Winters

The Difference Between B2B and B2C Order Fulfillment

As businesses shift more of their operations online, understanding the differences between B2B (Business-to-Business) fulfillment and B2C (Business-to-Consumer) fulfillment is essential for any company looking to succeed. Whether you’re selling products or services, understanding the unique nuances of each type of fulfillment can help ensure that your customers get the best possible experience. This post will discuss the differences, similarities, and crucial elements in B2B and B2C fulfillment.

B2B and B2C serve different customers.

The customer is the most apparent difference between B2B and B2C fulfillment. B2B fulfillment involves selling products or services to another business, while B2C fulfillment involves selling to individual consumers. This difference affects how companies approach fulfillment, as their customers have different needs.

If you are a B2B company, your customers are larger organizations that will make larger purchases that typically have a regular ordering pattern. They are partnerships that require stronger relationships, communication, and ongoing negotiations. Typically, B2B companies have fewer customers but order far more products.

On the other hand, if you are a B2C company, you serve far more individual customers who make small purchases. Organizations that focus on direct-to-consumer operations have thousands of individual customers. The relationship is primarily transactional and requires little, if any, connection.

B2B and B2C have different order quantities.

Regarding B2B fulfillment, the focus is less on individual orders and more on larger, complex orders. Businesses typically purchase in bulk, which means that B2B fulfillment must be able to handle larger orders and accommodate customized packaging and labeling. B2B businesses may also have strict deadlines for delivery and require specialized shipping options, such as freight services.

In contrast, B2C fulfillment is all about individual orders. Consumers order smaller quantities and expect to receive their orders quickly and with minimal fuss. B2C fulfillment must be able to promptly process and ship individual orders, and companies must be prepared to handle the influx of demands during peak times, such as the holiday season.

B2B and B2C have different shipping methods.

B2B fulfillment utilizes various shipping methods, depending on product size and type. Standard shipping methods include palletized truckload, less-than-truckload (LTL), freight, and parcel delivery services. These are optimized for cost and time savings while providing reliable and safe delivery. They typically have longer delivery times and require specialized equipment.

On the other hand, B2C fulfillment uses parcel delivery services, such as USPS, UPS, and FedEx. These services are often less expensive and faster than B2B shipping methods, making them the preferred choice for B2C fulfillment. Additionally, these services offer various customization and tracking options, allowing customers to track their packages and ensure their orders are delivered quickly and safely.

B2B and B2C fulfillment costs vary.

Obviously, the larger and bulkier orders placed by B2B companies will cost more. The orders’ sheer volume, weight, and size directly affect the shipping cost. Furthermore, fulfilling these orders requires special equipment and handling, which adds to the fees. Many B2B vendors and manufacturers are far away from the distribution center. This adds to the cost.

B2C fulfillment has relatively low costs compared to B2B. This is due to the smaller packages, distances to delivery, and weight of the items. More shipments require fulfillment but are lighter, smaller, and travel less distance, so they have lower costs associated.

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

Talk to one of our agents today to see how we can help manage the sizeable work required to fulfill orders for all of your customers.

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by Jamie C. Winters