Jamie C. Winters, Author at Falcon Fulfillment

6 Causes of E-commerce Shipping Damage and How to Prevent It

6 Main Causes of E-commerce Shipping Damage and How to Prevent It

Except for ordering or receiving the wrong size item, a damaged or defective product is the number one reason a customer will return an item. Unfortunately, damaged goods are all part of doing business as an e-commerce. Online returns cost retailers an average of 21% of the overall order value. You can reduce returns and improve customer service scores by focusing on minimizing shipping damage. There are a few practical and cost-effective ways to increase the chances your package arrives in excellent condition. Here are six main causes of e-commerce shipping damage and how to prevent it.

6 Main Causes for E-commerce Shipping Damage

Improper Packaging

Suppose the package selected to ship your product is too big or too small, the probability of damage increases. When a box is too large, the product has more room to shift and move in transit. If it is not shock-proof, the likelihood of damage goes up. Similarly, if a package is too small, the product has limited cushioning and is more easily crushed, scratched, or dented. There is a “Goldilocks” size for every product. A box or bag that is not too big and not too small; it’s “just right.”

Incorrect or Inadequate Filler

Failing to wrap or insulate the package with enough filler will result in more movement during transit. Furthermore, selecting a protective filler that isn’t appropriate can also increase the likelihood of damage. For example, shipping a bone china tea cup unwrapped and tucked into loose packing peanuts is a recipe for disaster.

Poor Handling

Your product will be jostled, tossed, stacked, shoved, and moved in ways you never could imagine. Products travel through various machines, conveyors, delivery vehicles, and people before they reach their final destination. Even when e-commerce fulfillment teams do their absolute best to package a product, it can still absorb shipping damage due to a lack of proper handling. Whether your delivery driver is just having a bad day or they had to make a hairpin turn last minute to avoid a stray dog, your package can take a tumble.

Mislabeled or Improperly Sealed

Not every transportation employee will heed the “Fragile” stickers affixed to packaging, but many do. Not adding a label at all can mean the difference between someone tossing your package on the front porch and carrying it there. Another common cause of e-commerce shipping damage is poor sealing. When the adhesive cannot hold the weight or has lost its ability to keep a box closed damage is bound to occur.

Failing to Track or Inspect Shipments

Many e-commerce businesses get so busy they fail to implement inspections along the fulfillment journey. Your product is passed along and if there are not quality control inspections along the way it is difficult to narrow down where the most shipping damages occur.

Infestation

Pests can ruin everything. While beetles, cockroaches, and birds are typical varmints found in warehouses the main perpetrator are rats. Rodents can chew through almost any variety of materials and use many types of packing materials to build their nests. They damage boxes, plastic and fiber tie downs and more. Weak, chewed up, and damaged corrugated packaging cannot withstand the same weight or transit stress as a perfect one.

6 Main Solutions for E-commerce Shipping Damage

Right-size Packaging

Packaging at the right size involves utilizing suitable materials, quantity, and dimensions to safeguard a product and effectively present a brand. This approach guarantees the optimal dimensions to reduce shipping damage while also cutting down on shipping expenses. Given that carriers calculate charges based on weight and dimensions, striking the right balance to protect the product without incurring additional costs for unused space is crucial. Discover four ways in which adopting right-size packaging can enhance profitability. Carriers charge based on weight and dimensions so getting the balance between protecting the product without paying for extra airspace is vital. Here are 4 ways that right-size packaging can boost profitability.

Correct Type and Amount of Filler

After getting the package size correct, the next tip to reduce e-commerce shipping damage is to select the right type and amount of dunnage. Dunnage is any packing material used to protect goods during shipping. There is a plethora of void fill and protective packaging materials to choose from. Many e-commerce companies are shifting their packing materials to sustainable choices. Our sustainable packaging guide can help you select the most eco-friendly materials to limit shipping damage.

Test Your Packaging Before Shipping

It might seem silly to package a product and then drop it off a 4ft cliff, but that is precisely what can make the difference between a refund and a 5-star review. Put your packaging to the test by shaking it, dropping it, banging it, rolling it, vibrating it, and torturing it as many ways as possible. If your product maintains pristine quality after rigorous trials, you can be assured your product should arrive with minimal shipping damage.

Use Quality Sealing Tape or Adhesive

Select high-quality sealing tape that is rated to hold the weight of your product. Also, ensure all edges are aligned and sealed fully to prevent snags.

Inspect Regularly

From the receiving dock to the final mile delivery it is important to document damage and shortages. Keeping a record of manufacturing damage can help you work with your vendor to modify shipping or packaging to minimize damage. Furthermore, if you are using a carrier that consistently delivers packages that are sustaining damage it can tell you it’s time to change. Track damage sustained including images of damage through the entire fulfillment process.

Extermination

Keeping a regular schedule of extermination in your storage and warehousing facility is crucial to keep pests away. Limiting access points and sealing all food items well will also keep from attracting bugs, beetles, and flies. It isn’t possible to keep pests from entering an open door but you can minimize shipping damage from them by ensuring you exterminate regularly and seal boxes fully.

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.

Get in touch today to see how we can help save you money on shipping damage returns.

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by Jamie C. Winters

Expanding Your Network with a 3PL

3PL partners offer logistics services and supply chain management. They are logistics experts, specifically; warehousing, picking and packing, inventory management, transportation, fulfillment, packaging, and returns management. Because of the focused nature of a 3PL, they typically have a broad network of partners related to all aspects of the logistics industry. How can you expand your network with a 3PL?

Transportation Network

3PLs boast relationships with multiple carriers spanning the transportation industry. These partnerships extend to various van lines, shipping companies, freight carriers, and rail lines. While an individual e-commerce business might maintain personal connections with one or two carriers, a 3PL cultivates relationships with numerous providers. The significance for your business lies in the immediate access to this expansive transportation network. This accessibility proves invaluable in scenarios such as unexpected disruptions, like flooding in Missouri, which may impede travel through vital interchanges. In such instances, your 3PL can swiftly pivot to alternative providers and routes, ensuring minimal delays.

Legal

A viable rats nest of legal concerns surround logistics, especially when you involve international shipments. This includes complicated issues like documentation, import and export regulations, as well as economic regulations. Hiring or investigating the nuances of international logistic law is time-consuming and expensive. One of the most cost-effective ways to expand your legal network is through partnering with a 3PL. A 3PL already has the expertise and relationships to comply with local, federal, and international laws. Your 3PL will have a pulse on the ever-changing legal fulfillment battles—especially those tricky wine and beer fulfillment issues.

Expand to New Locations

Expanding your e-commerce reach to new locations is daunting when you don’t have an on-the-ground expert helping you. When you consider trying to expand to new locations, you start by evaluating the market, estimating inventory needs, training staff, and sourcing suppliers and distributors. It is a very involved process. A 3PL expands your network by aiding in providing staff, multi-site distribution space, and flexible warehousing space as your reach grows. Not only that, but 3PL companies have a broad network of suppliers they work with and can make mutually beneficial introductions.

Returns Management

One of the greatest deterrents to gaining loyal customers is a lack of responsive customer service or a complex returns process. While most businesses would like to avoid returns altogether, having a solid return management process is crucial. Some of the best 3PL partnerships help manage the returns process, including receiving, returning items to the inventory management system, and disposing of damaged goods. 3PLs are experts in streamlining the returns process and ensuring a good customer experience.

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

We are poised and ready to help you expand your network and business! Get in touch with one of our agents today.

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by Jamie C. Winters

Improving Supply Chain Resilience with a 3PL Partner

The supply chain is often taken for granted until it is broken. The supply chain revealed some critical areas of weakness thanks to COVID-19 and the dominoes that toppled afterward. Improving supply chain resilience became an instant focus. Mike Jackson, executive director at the Original Equipment Suppliers Association (OESA), says, “Supply chain risks spiked on a number of fronts, fueled by workforce constraints, input shortages, and liquidity issues, due to the slashing of production volumes and future forecasts.” Companies scrambled with little or no notice to meet growing customer demands and plummeting supply.

During one of the biggest e-commerce booms, the businesses that thrived deployed partnerships and processes that improved supply chain performance. Delays, disruptions, and ongoing issues in the supply chain will not be dissolving anytime soon. This article will discuss why partnering with a 3PL is critical in improving supply chain resilience.

What are the supply chain risks?

Long Lead Times

The time it takes from an order placed to an order delivered to the consumer dramatically increased in 2020. According to a report by Anvyl, the top five reasons for the long lead times were:

Lack of containers
COVID-related issues (shutdowns, outbreaks, curfews, sick workforce)
Vessel space constraints
Raw material delays
Awaiting information from buyer (mostly payment delays)

Longer lead times cost many e-commerce customers. Even global conglomerate Amazon struggled to meet its “prime effect” two-day shipping. When a customer makes a purchase, they want it on their doorstep in hours or days. With the pandemic easing and the supply chain recovering, customer tolerance for delays is eroding.

Raw Material Shortages

Several ongoing factors are still contributing to a raw materials shortage, including geopolitical issues, continued zero COVID policy in China, and an upsurge in prices for raw goods. The Russian-Ukrainian crisis increased fuel costs and limited mobility of materials to major export partners. The dramatic knock-on effect left global and domestic manufacturing plants scrambling to source new suppliers. A few key industries have been hit the hardest, including; textiles, footwear, electronics, and agriculture.

Lack of Diversification

Diversification is crucial in improving supply chain resilience. From suppliers to consumer delivery routes, a diversified supply chain will increase the likelihood of success. The most pronounced areas are suppliers and manufacturing, transportation, and distribution.

Lack of Visibility

Do these phrases sound familiar, “Out of stock, back ordered, delayed shipment, delivery canceled?” The likelihood you have received this as a consumer is high. If you are an e-commerce business owner, the possibility you just had a moment of anxiety reading those is higher. Once the supply chain dominoes began to topple, the transparency of how goods were moving through the supply chain became uncertain and imprecise.

Customer service teams were overwhelmed with calls from frustrated consumers who just wanted to know WHEN or IF the product they purchased over ten days ago would arrive. Unfortunately, many businesses didn’t have a confident response. The limitations in supply chain visibility became evident. Companies that leveraged person-to-person communications and technology to illuminate issues within the supply chain could give consumers more details. Even though they may have had significant delays, they could communicate with customers proactively.

How to Improve Supply Chain Resilience with a 3PL Partner

Improving Long Lead Times

While a 3PL cannot make your manufacturer produce products any faster, they can assist with the long lead times by offering flexible warehousing. Even though lead times from international manufacturers might still be 6-8 months, the lead time from order to consumer can become significantly shorter. Having a scalable amount of storage based on fluctuating consumer demand allows e-commerce brands to pre-order products.

Improving Diversification

This is where a 3PL partnership can make the most significant improvement in supply chain resilience. Third-Party-Logistics providers are experts in transportation, manufacturers, and distribution. Where an individual e-commerce may have relationships with a few van lines or shipping suppliers, a 3PL has a vast network of connections across the transportation sector. A 3PL poised to improve your supply chain resilience will have relationships spanning air, ocean, and land. This is critical when one transportation supplier cannot deliver based on illness, staffing shortages, or border/port closures. A quick pivot can be managed by your 3PL partner, which will reduce delays.

Second to transportation is the manufacturing sector. A solid 3PL can make introductions across suppliers in order to diversify. E-commerce companies reliant on one manufacturer were at their mercy. 3PLs can help locate and work with suppliers to mitigate the risk of stockouts.

Lastly, ensuring multi-site distribution and warehousing is key in diversifying your supply chain. The best 3PL partners offer multiple warehouses where products are received, pick-and-packed, labeled, and shipped. During the worst of the slow-downs in the ports, there were certain products that were moving through West coast ports better than East coast ports and vice versa. It was highly beneficial to have a partner that could receive products from either coast. Furthermore, having a distribution warehouse near domestic manufacturers was a game-changer.

Improving Visibility

Communication failures, confusion, and limited insight from the supply chain became commonplace. However, 3PL teams are adept at reading insights and proactively determining when supplies would become critically low. Partnering with a solid 3PL allows for detailed reporting on inventory levels, forecasting, and even managing customer returns. From receiving to final delivery, a 3PL can provide almost real-time insight into your business. Premiere 3PL providers will also offer a personal approach with dedicated account managers you can contact directly. Having insight into when, where, and how your products are being managed equips your team with the information they need to appease frustrated consumers.

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

Want to learn more about how Falcon Fulfillment can improve your supply chain KPIs and create a more resilient process? Talk to one of our agents today.

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by Jamie C. Winters

How Tariffs Impact E-commerce Profits and the 3PL Solutions

How Tariffs Impact Ecommerce Profits and Why 3PLs Are the Solution

In 2025, ecommerce businesses face a daunting challenge: new tariffs are squeezing profit margins tighter than ever. Whether you’re importing goods from overseas or navigating rising shipping costs, tariffs impact ecommerce in ways that demand smarter strategies. Fortunately, Third-Party Logistics (3PL) providers offer a lifeline. By leveraging their expertise in fulfillment services and supply chain management, businesses can stay competitive. Let’s explore how tariffs impact ecommerce, why margins are at risk, and how outsourcing to a 3PL can help you thrive.

The Tariff Threat to Ecommerce

Tariffs, essentially taxes on imported goods, have been a hot topic since the U.S.-China trade war began adding billions in costs—$80 billion since 2018, according to the USTR. In 2025, with potential tariff hikes looming (think 10-20% on Chinese goods), ecommerce companies feel the pinch. For instance, higher costs for inventory mean slimmer profits unless prices rise—which risks losing price-sensitive customers. Meanwhile, shipping and delivery expenses climb as fuel surcharges and carrier fees reflect tariff-driven inflation. Tariffs impact ecommerce not just at the product level but across the entire supply chain.
However, the story doesn’t end there. Businesses relying on international shipping and import/export face delays at customs, while last-mile delivery costs soar—often accounting for over 50% of total delivery expenses, per 2024 Pitney Bowes data. Without a plan, these pressures erode profitability fast. So, what’s the solution?

How 3PLs Counter Tariff Challenges

This is where Third-Party Logistics (3PL) steps in. By outsourcing to a 3PL, ecommerce businesses tap into scalable fulfillment solutions that offset tariff costs. For example, 3PLs excel at supply chain optimization, using tools like warehouse automation and cloud-based Warehouse Management Systems (WMS) to streamline operations. Instead of absorbing higher freight costs, a 3PL’s freight rate negotiation and carrier selection and management can secure better deals. Consequently, you save money without compromising on-time delivery.
Moreover, 3PLs offer warehousing and distribution closer to your customers. Imagine storing inventory in a U.S.-based fulfillment center rather than relying solely on overseas bulk shipping. This reduces international shipping fees and customs brokerage headaches, directly countering how tariffs impact ecommerce. At Falcon Fulfillment, for instance, our Salt Lake City and Louisville hubs enable 2-day ground shipping to most of the U.S.—a cost-effective edge in a tariff-heavy world.

Practical Cost-Saving Strategies with 3PLs

Beyond location, 3PLs bring value-added services (VAS) like kitting and assembly or packaging optimization. These boost order value and cut waste, helping you maintain margins without raising prices. Additionally, inventory management becomes a breeze with 3PL technology solutions—think inventory tracking software and order fulfillment metrics and reporting. By forecasting demand and using inventory cycle counts, you avoid overstocking costly tariffed goods.
For multi-channel fulfillment, 3PLs integrate seamlessly with platforms like Shopify, ensuring order accuracy and quality control across sales channels. Meanwhile, services like reverse logistics and Return Merchandise Authorization (RMA) processing keep returns efficient, preserving customer trust. In short, a 3PL turns tariff challenges into opportunities by optimizing every step from order fulfillment solutions to transportation management systems (TMS).

Why Outsourcing Makes Sense Now

Although managing fulfillment in-house might feel like control, tariffs expose its limits. Rising costs for freight forwarding, outbound and inbound logistics, and even same-day and next-day delivery strain small teams. On the other hand, a 3PL’s expertise in ecommerce fulfillment and freight consolidation spreads those costs across their network, delivering savings you can’t replicate alone. Plus, with 3PLs handling order tracking and management, you focus on growth—not logistics.
Consider this: as tariffs impact ecommerce, profit margins shrink unless you adapt. A 3PL partnership might just be the edge you need to keep prices competitive and customers happy. It’s not about handing over control; it’s about leveraging pros who’ve mastered fulfillment cost analysis and supply chain management. At Falcon, we’ve seen clients cut shipping costs by 15% through strategic warehousing—proof that outsourcing works.

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

So, if tariffs impact ecommerce profits at your business, why not explore what outsourcing can do? The savings—and peace of mind—might surprise you.

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by Jamie C. Winters

Ways to Reduce Inventory Shrinkage

What is inventory shrinkage? How does it affect your bottom line? What is an acceptable percentage of inventory shrinkage? How can I prevent it?

Inventory shrinkage occurs when the physical inventory levels do not match the accounting records. The accounting data says you should have a specific number of physical products available, but after an actual count, a difference exists. No matter the inventory management systems or processes you have in place, shrinkage will occur.

Many reasons cause shrinkage, from human errors to theft. Inventory shrinkage affects retailers’ bottom line. According to the National Retail Security Survey, inventory shrinkage accounted for 1.38% of all retail sales. This represents a significant loss of revenue for retailers and e-commerce businesses. This article will discuss the leading causes of inventory shrinkage, how to calculate it, and ways to reduce shrinkage.

Causes of Inventory Shrinkage

Employee Theft

Employee theft accounts for nearly 42.7% of all inventory shrinkage. Whether from a brick-and-mortar shop or the warehouse, human beings are the most significant threat to increasing inventory shrinkage. Petty theft is stealing something that doesn’t have a high value. Taking a few pens, copy paper, or a coffee mug from the office isn’t a big deal, right? It becomes a big deal when you have 300 employees doing the same thing. Bolder employees find ways to steal much higher ticket items.

Skimming fraud is another form of theft that is much more challenging to detect. Employees pocket cash payments without ever adding the transaction to the system. This is where regular audits come in handy. Whether your staff is committing petty theft or skimming fraud, all forms of employee theft will adversely affect your bottom line.

Shoplifting

The ugly step-cousin of employee theft is consumer theft. Shoplifting has become a greater risk in the post-pandemic era due to staffing shortages across all retail outlets. The U.S. Chamber of Commerce discovered that employees quitting retail are only outpaced by the Leisure and Hospitality industries. Currently, less staff are responsible for managing more square footage in almost every retail outlet. According to a report released by the Council on Criminal Justice, shoplifting accounts for the largest portion of thefts next to motor vehicles. With less staff, it means fewer eyes watching and profiling potential shoplifters.

Administrative

Human error is another cause of inventory shrinkage. Albeit less than employee theft, it is still significant. Reporting errors, data input errors, and problems reconciling the accounts contribute to administrative inventory shrinkage.

Vendor Fraud

Vendor fraud occurs when the vendor or manufacturer sends a different amount of inventory than is stated on the invoice. This is relatively easy to spot when you only receive 10-20 boxes in a shipment. It becomes almost impossible when your shipments are 100s of packages.

Lost Shipments

Misplaced goods or lost shipments are another one of the most common causes of inventory shrinkage. Busy distribution and fulfillment centers are loading and unloading thousands of parcels a day. Warehouse crews move pallets from receiving to their warehousing space quickly to make room for the next shipment. Most shipments receive proper barcodes and are stored properly. However, some packages loose their barcode, are mislabeled, or are improperly stored. That package is lost.

Reducing Inventory Shrinkage

In fiscal year 2020, over 15% of retailers in the United States stated that they experienced an inventory shrink of 3% and higher.

Calculate Inventory Shrinkage Rate

Before reducing your shrinkage, you need to know how to calculate it. The acceptable level of shrinkage is less than 1%, but many companies experience much higher levels. Here is the industry formula for calculating your inventory shrinkage rate.

One of the major contributors to reducing inventory shrinkage is simply measuring it. You cannot fix what you don’t know is a problem! Once you have a baseline rate, you can implement the following processes to measure accurately and reduce inventory shrinkage effectively.

Track Every Item – Barcode and SKU

Every product must possess a unique identifier. This empowers inventory management systems to effectively track in real-time. It furnishes the data to promptly pinpoint inventory shrinkage and gain insight into where products are losing or getting stolen. Many fulfillment companies and suppliers have the capability to attach unique barcodes or SKUs to products before or during the receiving process. This decreases human error and enhances the capability to track inventory as it progresses through the sales process.

Train Employees

Certainly, you will instruct your employees in performing their duties, but it’s essential to provide targeted training on employee theft. Establish a clear policy and procedure concerning theft. Clearly define the repercussions for theft and its detrimental impact on the company. Introduce a mechanism for employees to anonymously report suspected theft. Clearly communicate what constitutes theft and the threshold at which termination or legal action will be pursued. Ensure that all employees grasp the expected standards.

Use Automated Inventory Management Systems

Having a single point of truth regarding inventory levels is key to reducing inventory shrinkage. Managing all available products through a uniform system ensures accurate and up-to-date data. Administrative errors are reduced when information is not transferred from one system to another. Barcodes and SKUs have the exact details in North Dakota as they do in the warehouse in Salt Lake City. Automated inventory management systems unify the data across the fulfillment and final sales exchange.

Enhanced Security Measures

Because so much inventory shrinkage is attributed to theft, increasing security measures is an excellent way to reduce it. Install cameras throughout your retail space, behind the cash register, store room, and loading dock to prevent theft. Give each employee a unique login to track voided cash transactions and irregular sales patterns. Also, consider hiring a security guard, especially for high-value items or when you notice an increase in theft in a specific area. Don’t forget about your warehouse or distribution locations. If you outsource fulfillment, ensure your partner has 24/7 security, cameras, and a regular schedule of reviewing employees.

Surprise Audits and Consistent Tracking

Surprise! Checking your inventory levels regularly and unexpectedly helps reduce inventory shrinkage. Surprise audits minimize theft and highlight admin errors regularly. When you commit to periodically updating inventory levels in real-time, you will identify the main issues, and you can begin to reduce the impact.

Partner with an Excellent 3PL

Partnering with an excellent 3PL can provide your business with many of the solutions listed here. They leverage automated inventory management systems that can provide real-time stock levels. They invest in serious security measures, including cameras, on-site security, and thorough employee training. Furthermore, a great 3PL can help implement barcoding for every SKU that syncs to the IMS. Their receiving crews are trained with double-check systems to reduce lost or misplaced products. Lastly, vendor fraud is minimized by providing accurate and detailed receiving reports. Working with Falcon Fulfillment would be a great option!

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

Want to learn more ways to reduce inventory shrinkage for your company? Get in touch today.

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by Jamie C. Winters

6 Ways to Scale Your E-commerce Business

Starting an e-commerce business is an exciting adventure, especially given the explosive growth of online sales. E-commerce sales surged by 43% during the global pandemic. They continued to rise in 2021 and beyond. Companies that invested in building solid foundations discovered that scaling beyond a lifestyle business required new strategies and processes. Deciding to scale your e-commerce business is a significant step and can prove to be challenging. There are a few key strategies held as industry best practices regarding e-commerce growth. In this article, we will discuss six ways to scale your e-commerce business.

Launch New Marketing Strategies

It is no surprise that if customers cannot find you, they will not buy from you. The online marketing space is cutthroat, no matter what your product or service might be. If you don’t have a substantial marketing budget, you will need to get creative with your marketing plans and strategy. Consider launching new paid campaigns like banner ads, retargeting ads, socials, and PPC (pay-per-click). Take time to review your data and decide on campaigns and ad spending based on actual metrics. Do not guess what you think might work in marketing! Critical metrics you should be tracking include; sales conversion rate, store session by device, store session by traffic source, shopping cart abandonment, returning customer rate, bounce rate, and net promoter score.

Marketing Campaign Ideas

Blog

It might be old news for some, but content still drives organic traffic. It can be difficult for an e-commerce business that is product-focused to write and maintain a blog, but it can pay big dividends long term. Blogs can be a place on your site that share your unique brand story. It is also a place to educate your customers and inform them of changes you make as you grow. For example, if you run a skincare or beauty brand, share tips on how to use your products, what science backs your ingredient choices, and customer success stories as you collect them. No matter what you sell, a blog can be a great way to drive traffic to your site.

Invest in Automation

When you realize it might be time to scale your e-commerce business, one of the best ways is to invest in automation. What exactly should you automate? First, evaluate the areas where you spend the most time or resources managing. Then determine if those aspects could be automated. Maybe you spend hours corresponding to simple customer service requests? Perhaps it is emailing to get feedback reviews, or social media management. Whatever presents the most significant time soak is what should be automated first. One of the most straightforward automation tools to implement is email correspondence. Start there if you are not already auto-mailing order confirmations, tracking, and delivery details.

Outsource Fulfillment

As your order quantities begin to increase you will need to stop self-fulfilling. When you first launched order numbers were manageable, and self-fulfilling was doable. However, order fulfillment is one of the crucial keys in scaling your e-commerce business and one of the most resource heavy tasks too. Scale your e-commerce with a 3PL. Let them take on the job of processing, packaging, and shipping your orders. Even though the initial onboarding and investment might be daunting, it’s an investment that will allow you to scale up exponentially. It frees up time, energy, and resource to focus on your company and your core competencies.

Redesign Website for Mobile Sales

Most people are doing their shopping from their phones. If your site isn’t mobile enabled and optimized for mobile sales you will miss out. Design your site with UX that drives mobile sales. Ensure product images, CTAs, and purchase forms are easily accessible and have the fastest load times you can manage.

Build Excellent Customer Support

Automating via chatbots is one way to help scale your e-commerce business but don’t neglect the human touch either. For common support issues having a 24/7 chat feature is great but for more complex issues people want to talk to a person. Ensure that as your company grows it will be able to handle the increased volume of unique customer needs. Customer service plays a crucial role in customer retention, and the cost to keep a customer is far less than the cost to get a new one! In fact, in the e-commerce realm, retention is 5X cheaper than acquiring a new customer.

Ways Falcon Fulfillment Can Help Scale Your E-commerce Business

Flexibility

Whether you need a lot or a little warehouse space with Falcon you pay for what you need. This allows your profitability to stay high in and out of peak seasons.

Higher Customer Satisfaction

Giving excellent customer experiences at scale is crucial to ongoing growth. At Falcon, we are partners with our clients and we care about your customers almost as much as you do.

Integrated Technology

Your e-commerce doesn’t have to make expensive investments in inventory management software to scale. Our proprietary IMS allows all our clients to see their detailed reports in real-time.

Returns Management

As your e-commerce business grows, so will your returns. It’s simply a matter of numbers. Falcon can help develop and implement a streamlined returns process that keeps customers coming back.

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

Interested in learning more about ways we can help you scale? Get in touch with one of our team today.

Let’s Talk!

Connect with us!

by Jamie C. Winters

Ways to Make Your E-commerce Stand Out

Ways To Make Your E-commerce Standout

Online shopping is currently at an all-time high, and as a result, every niche is saturated with e-commerce brands that are nailing the basics. These companies have fulfillment and distribution locked down, and moreover, they know precisely how to meet the needs of even the pickiest customers. In this highly competitive landscape, people want to be able to differentiate between products and brands quickly. Consequently, knowing where to invest valuable time and resources can mean the difference between a converted consumer and an abandoned cart shopper. So, the question remains: What are some of the best ways to make your e-commerce business stand out in such a crowded market?

Narrow and Nail Your USP (Unique Selling Proposition)

E-commerce brands that stand out in the market understand what makes them better than their competition. This is their unique selling proposition. They exhibit this USP every chance they have, from marketing to packaging. Establish a narrow and clear USP, so you don’t fade into the e-commerce ether of the internet. What is it that your business does best?

Updated and Streamlined Website

More than 90% of buyers say they pay more attention to visual appearance over other elements when making a purchase. Furthermore, consumers will leave if your website is outdated or clunky before they even consider purchasing. You cannot afford a website that doesn’t have great UI/UX and funnels customers to a CTA. A few of the most crucial elements of a great e-commerce website are:

Clear Calls to Action
Multiple, Large, High-Quality Images on Product Pages
Lifestyle Versus Product Imagery
Recommended Related Products
Customer Reviews and Ratings for Products
Intuitive and Useful Site Navigation
Easy Checkout

Adapt and Reinvent

Your products simply cannot go stale. After all, stagnant fashion inevitably ends up in the thrift store, and unsold products collect dust, only to be liquidated or incinerated. Therefore, to stay relevant and competitive, it’s crucial to continually update your offer according to the latest trends, tastes, and even TikToks! In today’s market, your company cannot afford to stay where they’ve always been. Instead, embracing change and adapting to new consumer preferences is essential for long-term success.

Invest In and Cultivate Social Proof

Consumers rely heavily on others to determine whether or not they will purchase a product. In fact, reviews, consumer photos, and feedback provided by real customers significantly help conversion rates. Remarkably, one customer review alone can increase conversion rates by 10%, and multiple reviews can boost them by an impressive 44%. Given these statistics, you simply cannot afford to wait for the 5-star reviews to show up organically. Therefore, to ensure your e-commerce business stands out from the competition, here are a few ways to invest in a robust social proof strategy.

Showcase Reviews
Create User-Generated Content
Collaborate with Local Celebrities, Experts, or Industry Influencers
Display testimonials on your website
Encourage mentions and be responsive
Use Chat Bot Responses to Share Social Proof Content To Answer Questions

Be Active On Social Media

Online shoppers often check out a brand’s social accounts or even get targeted before they make a purchase. One big way to make your e-commerce stand out is to remain active and consistent on social media. It is also one of the best and more affordable ways to engage with your online brand advocates. Here are some posting ideas to kickstart your campaigns.

Demo and How-To Videos
Host LIVE events on Instagram or Facebook
Create Curated Pinterest Boards
Ask Questions To Your Target Audience
Give Sneak Peeks Into New Products and Events
Host Q + A Sessions
Use Specific Hashtags
Create Giveaways and Promote User Content

Offer Subscription Boxes and Pairings

Generate consistent month-over-month revenue and wow your customers by offering a subscription box or personalized pairings and add-ons. Here are some keys aspects of creating a successful subscription box.

Solve An Actual Problem For Your Customer Avatar

Regardless of your marketing budget, website design prowess, or social media engagement, one stellar way to make your e-commerce stand out is to solve a problem. This is likely your USP, but sometimes it is a bonus that your product offers. Consider your customer avatar and create a solution for a real-life pain point. This is one of the best ways to make your e-commerce STAND OUT…it’s solid gold!

Unforgettable Customer Service

In a saturated market of bots and automated help articles, having a personal, professional, and polite customer service situation is shocking. While it may not be feasible to hire actual people to respond to every customer request, at minimum, try to ensure a real person solves the most challenging situations. According to Brittany Hodak, the 3 P’s of customer service are professionalism, patience, and a people-first attitude. Having a people-centric customer service model will beat the competition without much effort.

Be Charitable

It’s no surprise that people like to buy stuff from companies that help others. Whether your philanthropic outreach is for children, pups, or people struggling with addiction, adding a charitable cause to your business is a great way to set you apart.

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

Get in touch with one of our agents today to see how we can help.

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by Jamie C. Winters

6 Indicators You Should Stop Dropshipping

Dropshipping is a great way to start an e-commerce. It is a direct partnership between suppliers and manufacturers to accept orders for their goods or products. The startup costs are minimal, and it is an easy way to test products in a new market. However, there are several drawbacks to dropshipping and some significant limitations. Here are six indicators to stop dropshipping and consider fulfillment alternatives.

Product Delivery Times Don’t Meet Customer Demand

Suppliers and manufacturers are not agile in servicing and fulfilling individual orders. Their primary focus is producing and fulfilling large wholesale purchases. The bulk of their profit is made through large-scale orders. Dropshipping and any DTC sales will always be secondary. Therefore, you can expect far longer delivery timelines using dropshipping than meets consumer demand. According to Medium.com, the average dropshipping delivery time is 12-60 days.

Lower Margins

Dropshipping is essentially marketing and selling for the manufacturer. As the e-commerce owner, you can expect lower margins. Without the benefit of negotiating a larger volume order price, each sale you make will be slightly less than if you fulfilled in-house or through a 3PL. It is crucial to evaluate the entire cost of dropshipping. Even though you may save initially, it could cost you more than you think.

You Need to Scale

The e-commerce brands that thrive have a proven customer service track record. When something goes wrong with an order, the customer will call you, not the manufacturer. Therefore, you need to have the ability to problem solve quickly. This is easier if your supplier is domestic but becomes exponentially more complicated with an international provider. From language barriers to time zone differences, getting an answer could take several days vs. hours. Even if your supplier is located in the US, communications can fail. If you have experienced this frustration, it might indicate that you should stop dropshipping.

Inventory Control is Out of Control

When you dropship, you have a 0% say in how much inventory the supplier creates. Furthermore, you are stuck when a more prominent company places a larger order and buys out all YOUR stock. Your business and revenue are at the mercy of your manufacturer. At any moment, the supplier could decide to discontinue producing your product. One way to avoid this is by diversifying your manufacturing and sourcing multiple locations that can fulfill your orders. Quality control gets tricky, but you would be far less likely to have a complete inventory blackout.

Quality Control is Unknown

Unless you receive product orders regularly, you have very little assurance in what ends up in the shipped box. The unboxing experience for your customer is out of your hands. Damages and returns are more common with dropshipping, which means that your customer service teams might be busier than if you chose a fulfillment alternative.

Communication Failures

Does this sound familiar? Your sales are up, and your market test confirms there is still room for growth. However, you are concerned if you run a campaign to boost sales, fulfillment would falter. Your business is probably feeling restrained, indicating that you should stop dropshipping. When you have been accepting lower margins, but the numbers show you could maximize earnings by buying wholesale, managing inventory, and fulfilling, it might be time to switch.

Fulfillment Alternatives for Dropshippers

Check out our post on the differences in “Logistics Providers Explained: 1PL, 2PL, 3PL, 4PL, and 5PL.” There are many fulfillment alternatives, but we have found the sweet spot for e-commerce businesses seeing indicators to stop dropshipping benefit considerably from a 3PL relationship. Here’s why:

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

If you are witnessing any indicators that you should stop dropshipping, chat with us to see if we can help. Get in touch today.

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by Jamie C. Winters

Choosing a 3PL Partner - 11 Factors to Consider

Choosing a 3PL Partner – Factors to Consider

For e-commerce business owners, fulfilling orders in-house might be feasible for a short time. As sales increase and warehouse space become sparse, it might be time to outsource fulfillment. Choosing the right 3PL partner for your fulfillment needs can help your business become more strategic, increase customer satisfaction, and scale. Here’s what you need to understand about choosing a 3PL partner and factors to consider.

Questions to Ask and Answer Before Choosing a 3PL Partner

What are your company’s shipping and packaging priorities?
What are your company’s marketing priorities?
How will these priorities change over the next 3-5 years?
What is the projected growth you expect over the next year or two?
What qualities do you expect your 3PL partner to have?
What services do you want your fulfillment partner to offer?
Is sustainability important?
How communicative do you want your 3PL partner to be in the relationship?
Do you want your fulfillment team to handle returns and restocking?
Where are the majority of your customers? Countries, regions, towns, etc.
Is offering free shipping to your customers a priority?

11 Factors to Consider When Choosing a 3PL Partner

Capability

Almost every 3PL company will provide an expanded network of transportation carriers, warehousing, and expertise in the logistics industry. These are the foundational requirements. Therefore to understand which 3PL partner will work best with your company, you need to understand what other services they provide. For example, can they help you with kitting, pick and pack, and returns management? Selecting a 3PL provider that can offer various services will help you offload more logistics management as you grow.

Stability

Don’t go with a newbie. Fulfillment companies popped up like dandelions during the COVID-19 pandemic and have subsequently withered just as fast. Choose a 3PL partner with an established track record for superior service and exceeding industry service standards. The supply chain continues to fluctuate rapidly. Selecting an experienced and stable 3PL partner can help you preempt shifts in the supply to ensure minimal disruptions to your business operations and inventory.

Reputation & Reviews

3PL partners that go above and beyond to care for their customers, carriers, staff, and vendors will have a solid reputation in the industry. Fulfillment companies leverage their relationships in transportation, manufacturing, and marketing to help their clients. Trust reviews from multiple sources to determine what you can expect working with them.

Safety & Security

Amazon lawsuits are multiplying daily from accounts of negligence and safety concerns. While no warehouse is perfect, it’s vital to ensure your 3PL partner is demonstrating a high level of safety for staff and products. Look for providers that have PCI certification and a HAZMAT shipping certification. Furthermore, they should safeguard financial information.

Customer Service

Excellent customer service is a vital part of running a successful business. When customers have a good experience with your company, they share it with others. 3PL companies that exhibit excellent customer service respond quickly to requests, provide clear and helpful communication, are adequately trained, speak with customers directly, and are present in the warehouse. When choosing a 3PL partner, evaluating their customer service offering and quality is crucial.

Scalability

One of the benefits of partnering with a 3PL is the ability to scale your business. The partnership allows you immediate access to flexible storage space, expertly trained fulfillment staff, and a broad network of transportation carriers. Most 3PL companies offer some level of scalability for your business. However, not all 3PLs are created equal. You don’t want to discover after you have onboarded that your plans to 10x are impossible. Ensure your fulfillment partner can provide storage, shipping, and fulfillment solutions for your business today and in the future.

Accuracy

Inaccurate data, inventory, or tracking details can affect your bottom line and customer satisfaction. A solid 3PL partner will have a 99% or higher accuracy rate. This is the industry standard, so anything below that is a red flag. Most 3PL companies utilize high-tech inventory management systems and real-time tracking and delivery programs. This reduces human error and increases insight.

Responsiveness

One of the main complaints of customers about 3PL partners is the need for more responsiveness. In general many fulfillment companies don’t have the human resources to provide a dedicated account manager. They correspond with customers “when they can.” With Falcon Fulfillment, you always have a dedicated account manager. This has enabled our customers to get the answers they need to make crucial business decisions and keep their clients happy. Ensure you are satisfied with the level and consistency of communication your 3PL offers.

Omnichannel Expertise

Retailers who desire to meet and exceed customer expectations strategically offer an omnichannel experience. Find a 3PL provider that has expertise in streamlining sales, inventory management, and fulfillment across all platforms. They can make recommendations to expand your sales funnel without jeopardizing brand continuity or diminishing customer service.

Multi-site Distribution

Unless you sell to customers in a single location, having a 3PL partner with multi-site distribution centers is a significant benefit. This significantly allows you to offer your customers lower shipping costs and faster delivery. Multi-site distribution is essential when competing with the “Prime Effect,” of lightning-fast fulfillment.

Compatible Technology

Every 3PL partner will have slightly different integrations that are turnkey. Select a fulfillment company that already has compatibility with your systems or is willing to customize integrations. Disjointed systems are one of the significant causes of frustration and miscommunications in logistics and shipping so discuss this issue early in conversations. Here is a short list of the integrations Falcon currently offers:

Shopify
ShipStation
WooCommerce
Infusionsoft
ClickBank
OrderBot
Click Funnels
Zapier

In addition, our Shipstation partnership allows us to integrate with more e-commerce shopping carts like:

Amazon UK, Canada, Mexico, USA
UltraCart
eBay
Walmart
and more

Lastly, Falcon Fulfillment offers our API, allowing seamless custom integrations.

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

If you want to learn more about the Falcon Difference, contact one of our specialists today.

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by Jamie C. Winters

3 Types of Logistics - Inbound, Outbound, and Reverse

3 Types of Logistics – Inbound, Outbound, and Reverse

Logistics is an important part of any business. It ensures that businesses deliver products and services on time and in a cost-effective manner. Simply put, logistics includes three main categories: inbound, outbound, and reverse logistics. Each of these categories has characteristics and processes, and businesses must understand them to operate successfully.

Inbound Logistics

Inbound logistics is the process of receiving and storing goods from suppliers and vendors. It involves managing the flow of materials from the point of origin to the point of use. It includes transportation, inventory management, warehousing, and order fulfillment. Here is a brief overview of aspects commonly considered inbound logistics activities:

Sourcing and Procurement – Sourcing takes care of everything from finding suppliers, vetting & contracting them, and maintaining a healthy variety of vendors to cater to the organizational needs. Procurement involves procuring goods and services needed for the organization. See the differences between sourcing and procurement below:
Ordering and Purchasing – Ordering and purchasing involves buying the correct quantity of goods in time for crucial business operations and sales
Transportation – Selecting the transport method, speed, and carrier to move goods from vendors to their intended destination.
Receiving – This process involves handling materials and goods as they arrive, including unloading and ensuring quality and quantity match the order.
Storing – Once the goods are verified, they must be organized and stored. Typically this involves warehousing of some kind.
Inventory Management – Another crucial aspect of the inbound logistics process is managing inventory, including adding raw materials, components, and ready-to-sell products to the inventory management system (IMS).
Reverse Logistics – while this is its own type of logistics, it is also considered an inbound logistics activity because goods are added back into the supply chain. More on this later in the post

Inbound logistics is essential for businesses as it ensures that the right products are delivered to the right place at the right time. Furthermore, it supplies the company with the raw materials, goods, and services required to fulfill customer orders.

Outbound Logistics

Outbound logistics is the process of transporting and delivering goods to customers. It is the opposite of inbound logistics and involves activities such as order processing, picking, packing, and shipping. Outbound logistics focuses on the demand side of the supply-and-demand equation. In brief, some of the most vital outbound logistics processes include:

Warehousing and Storage – Similar to inbound logistics, warehousing, and storage planning and design are necessary to fulfill orders quickly and accurately
Picking and Packaging – As customer orders are received, the items are selected, packaged, and prepped for shipping.
Outbound Transportation – This is the process whereby orders are delivered to the end user. Multiple aspects are in this category, including distribution channels, route optimization, and last-mile delivery.

Without a doubt, outbound logistics is essential for businesses as it ensures customers receive their orders on time and in perfect condition.

Reverse Logistics

Reverse logistics is essential for businesses to reduce costs associated with returns and allow companies to create a better customer experience. It involves every aspect of returning goods from customers to the business including; product inspection, repair, and replacement. With more than 20% of online purchases ending in a return or exchange, this type of logistic planning cannot be an afterthought. Companies that prioritize easy return policies and a fluid process for customers are earning trust and loyalty. What’s more, partnering with a 3PL provider that offers reverse logistics as a service is a great way to include this service without the headache of managing all the moving parts.

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

How a 3PL assists with the 3 types of logistics

A 3PL (Third-Party Logistics) provider helps companies manage their inbound, outbound, and reverse logistics operations. For inbound logistics, a 3PL can coordinate the transportation of goods from suppliers, manufacturers, and vendors to warehouses and distribution centers. For outbound logistics, a 3PL transports goods from warehouses to customers. Simply put, they receive products and components, store them, and ship them to the end customer. For reverse logistics, quality 3PL partners manage the return of goods from customers to suppliers or warehouses. In addition, a 3PL can help a company manage inventory levels and provide tracking and reporting services. Therefore, by leveraging their expertise, companies can streamline their supply chain operations, reduce costs, and improve customer service.

Overall, inbound, outbound, and reverse logistics are 3 types of logistics processes. These processes ensure products and services are delivered on time, cost-effective, and customer satisfaction. Businesses must understand and manage these processes to be successful. Talk to a friendly agent today to see how Falcon Fulfillment can assist with your logistics needs.

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