common costly shipping mistakes

6 Common and Costly Shipping Mistakes

Common and Costly Shipping Mistakes

Shipping products is a necessary component of running a business. According to a new report from Pitney Bowes, parcel shipping exceeds 131 billion in volume globally and is likely to double by 2026. Companies must correctly manage shipping and delivery expenses to prevent negative effects like slowed productivity, dissatisfied consumers, and burgeoning shipping budgets. Unfortunately, these six common and costly shipping mistakes affect even the most diligent organizations. The good news is that all of them can be limited with a few simple changes.


Invoice Errors

common costly shipping mistakes

Invoice errors or miscalculations are more common than you might expect. Nearly 2% of all shipping invoices contain errors. The most common inaccuracies include:

  • Fuel and Shipping Miscalculations – Fuel prices fluctuate, so it’s no surprise that miscalculations happen regularly. Make sure shipping contracts clearly state acceptable margins of error on fuel charges. In addition, shipping miscalculations are related to inaccurate weights and dimensions of packages.
  • Accessory Charges – relate to special instructions or tools required for delivery. For example, charges can be added to access a gated community or deliver a heavy load up or down stairs. Another common accessory charge is for unique tool usage, like lift gates, forklifts, etc. These charges are hard to know whether they are legitimate. Ensure you trust your carrier and have the relationship to question when something seems out of the ordinary.
  • Detention – occurs when your shipment isn’t ready for pickup during the allotted time. Often these terms are set beforehand, but you can be overcharged for the time the carrier waits.

The best way to avoid common shipping mistakes is to audit invoices. Whether you take the time to review them or invest in automated invoice technology, it is crucial to double-check for accuracy. Given the numbers, you could save your company 2% on shipping costs annually.

Incorrect Measurements and Dimensions

Incorrectly measuring or weighing parcels is probably one of the easiest shipping mistakes, yet it is one of the most costly. Shipping charges are calculated based on actual dimensions, density, weights, and volumes of parcels. If an estimate is off by even a few ounces, it can result in thousands of dollars of surcharges, especially when shipping more than a few daily orders.

Depending on the carrier, they could even return the package to the warehouse and make you pay for redelivery at the correct amount! This delays the package, costs your company double the shipping, and doesn’t provide your customer with a good experience.

Ensure your packages have precise dimensions and weights, using a tape measure and calibrated scale. It is a simple step that busy entrepreneurs often miss.

Improper Packaging

common costly shipping mistakes

Packaging your products in a box that is either too big or too small can cost you money. Improperly packaged products are prone to damage and breakage. Furthermore, you could be overpaying for shipping using an oversized box (albeit standardized). Here are four ways right-size packaging can boost profitability. Packages that are delivered that have sustained shipping damage also do not showcase your brand well. Utilizing packaging and materials that protect your product and showcase your brand saves you money long-term.

Offering Free Shipping When You Cannot Afford It

A common and costly shipping mistake is offering free shipping when it doesn’t make financial sense. Of course, customers want free shipping but do not offer it if it will place your business in a financial bind. A quick evaluation of your accounting records will tell you whether or not it is viable. Here are a few “free-shipping” options that might still allow you to offer it as a special event without breaking the bank.

No Shipping Insurance

This is an easy mistake, especially when you want to cut corners. Unfortunately, the sender covers any shipping damages or losses. This is why it is crucial to insure your products. Regardless of shipping insurance, you can recoup losses and damages when the unexpected occurs.

Incorrect or Incomplete Delivery Details

common costly shipping mistakes

A silly but common and costly shipping mistake is inaccurate or incomplete delivery details. From incorrect addresses to vague delivery details like the floor or suite number can cause delivery delays, returns and cost you money. Double check address details and ensure if there are special delivery instructions that either the customer covers the expense or verify you can absorb the cost. Invest in online address verification technology. When a customer inputs their address it will confirm the details by cross-referencing them against known addresses. If there is a mistake, it can autocorrect at the input point.

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.

Read More…


With shipping costs rising, it is vital to ensure you are saving as much as possible by avoiding these common and costly shipping mistakes. By steering clear of a few of these mistakes, your company can see a little boost to your bottom line. By double-checking the accuracy of invoices, addresses, dimensions, and weights, your company can save a lot of lost revenue. Even though package damages cannot be avoided altogether, using the right-size packaging limits damage and ensures you are only paying for the shipping, you need.

Falcon Fulfillment can help you reduce shipping costs, improve shipping invoice transparency, and provide the right-size packaging. Learn more and get in touch with one of our agents today.

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basics of standard shipping

Shipping 101: The Basics of Standard Shipping

The Basics of Standard Shipping

As an e-commerce retailer, you are undoubtedly aware of the importance of offering reliable delivery options to your customers. Consequently, shoppers anticipate a range of delivery choices at the checkout stage. While shipping is a fundamental necessity, it can often feel daunting. Nevertheless, one of the most widely preferred and dependable options is standard shipping. In this article, we will delve into the fundamentals of standard shipping, including delivery times, cost considerations, and strategies for enhancing your overall shipping experience.


What is Standard Shipping?

basics of standard shipping

Standard shipping, also known as regular shipping, is generally regarded as the most economical option for parcel delivery. Referred to as ground, economy, or regular shipping, it represents the baseline level of shipping typically presented at checkout. Not including expedited options like overnight or 2-day delivery, standard shipping is considered the basic, expected delivery method in e-commerce. While it may not be swift, standard shipping reliably fulfills the task at hand.

How long does standard shipping take?

Several factors contribute to how long a package will take to deliver using standard shipping.

  • Distance the shipment travels
  • Processing time cut-offs
  • Standard shipping timeline for the individual carrier

The typical timeframe for a package delivered via standard or ground is 1-5 business days within the continental United States. Conversely, a Hawaiian customer ordering a product from Maine will experience a longer delivery timeline.

What factors contribute to shipping costs?

Similar to determining the time a package takes to be delivered, many factors contribute to the cost. The distance from the warehouse or store to the final destination will be a significant cost factor. Typically, prices are relatively stable within the continental US. Those costs will be slightly higher if you add Puerto Rico, Hawaii, and Alaska. International is an entirely different beast. Other factors that significantly impact the price are the package dimensions and weight. Most major parcel carriers now offer standard-size boxes and maximum weights for a flat rate. This is useful for smaller e-commerce businesses that don’t care about a branded unboxing experience. The carrier will also make a difference in the cost of standard shipping. The graph below compares standard shipping for the largest parcel delivery companies in the continental US.

basics of standard shipping

Ways to improve the standard shipping experience.

According to a study done by Accenture, effective and dependable delivery options are a priority for e-commerce brands to remain competitive. Brands that want to maintain and grow their market share will not only need to provide reliable shipping but will also need to diversify their offerings. A few ways to improve the standard shipping experience include:

Proactive delivery communication.

Giving consumers a delivery window is no longer enough to satisfy customer expectations. They want consistent post-purchase communications to plan and prepare to receive their order. This includes tracking information, delay updates when necessary, and even notifying the consumers when a package is out for delivery. Suppose your parcel delivery company can provide consumers with a preferred delivery window that can be game-changing. This is especially true for large parcel deliveries and those requiring an adult signature. This level of proactive communication improves the standard shipping experience greatly.

Upgrades and delivery alternatives

66% of consumers choose retailers based on the number of delivery options available at checkout. Offering 2-day shipping, expedited, or delivery alternatives must be available to stay competitive. Alternative options to standard shipping that won’t dramatically raise the shipping costs include; BOPIS (Buy Online Pickup In-Store), Curbside, and local delivery or locker systems. If you run a brick-and-mortar store, these alternatives can improve customer satisfaction without negatively affecting the bottom line.

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.

Read More…


Managing the logistics of shipping can become overwhelming quickly. Typically, e-commerce brands use at least three parcel carriers to mitigate the risk of lost packages and delays stemming from single carrier usage. Partnering with a 3PL is an excellent way to scale your standard shipping options. 3PL partners, like Falcon Fulfillment, are experts in fulfillment, delivery, and shipping best practices. They can help your e-commerce brand not just get a package delivered but ensure your growing consumer expectations are not just met but exceeded.

Want to go beyond the basics of standard shipping? Get in touch with one of our specialists today.

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offer 2-day shipping e-commerce

How To Offer 2-Day Shipping As An E-commerce Startup

How to offer 2-day shipping as an e-commerce startup.

As an e-commerce startup, offering two-day shipping can be a great way to give customers the convenience that they desire and set yourself apart from the competition. That said, offering two-day shipping can take a lot of work. It is important to understand the value of offering 2-day shipping and what is necessary to provide it without sacrificing profitability. This post will discuss the ins and outs of 2-day shipping and how you can offer it even if you are an e-commerce startup.


Benefits of offering 2-day shipping

Improved customer satisfaction

It’s no secret that when people order a product, they want it as soon as possible. The sooner they receive their items, the more likely they will have a positive brand experience. With 60% of consumers expecting expedited shipping options, it is crucial to have favorable customer reviews and recommendations.

offer 2-day shipping e-commerce

Increased sales conversions

Companies that offer expedited shipping, especially at an affordable rate, are far more likely to convert browsing consumers into paying ones. While shopping cart abandonment is a serious issue, it can be minimized by offering faster delivery options at a reasonable price.

Improved customer loyalty

When a consumer receives their package promptly, it builds trust and loyalty in the brand. Customers are far more likely to buy again if they have a positive delivery experience.

According to Lasership, slow delivery caused 64% of consumers to try a new retailer and 54% to switch retailers. Therefore, planning to offer 2-day, expedited shipping is vital. How can you provide 2-day shipping?

How to offer 2-day shipping tips

Distributed inventory

Utilizing multiple fulfillment centers or warehouses can provide faster and cheaper shipping to customers. Most 3PL partners can distribute inventory across their centers, which means it is a great way to distribute inventory without securing private warehousing spaces in multiple locations.

offer 2-day shipping e-commerce

Improve processing speeds

One of the first things that must be considered is how long it takes for an order to be received, packed, labeled, and shipped. If you fulfill in-house, this task can consume significant time and resources. In order to meet 2-day shipping cutoffs, it is vital to process orders within hours of receiving them. This gives the carriers the most time possible to execute final-mile delivery within the 2-day window.

Investing in team training, automation, high-tech inventory software that improves picking accuracy, and ensuring a clean and well-designed warehouse can improve streamlining order processing. If this seems like a hefty investment of time and money, it is. However, partnering with a quality 3PL partner can give you access to a fully optimized order processing workflow with a smaller upfront investment.

Utilize multiple expedited shipping carriers

To secure expedited shipping without breaking the bank, it is imperative to partner with multiple shipping carriers offering faster delivery speeds. Of course, the faster a package arrives often means, the more expensive the shipping fees will be. As your business grows, you can leverage bulk discounts which help alleviate the higher costs. As an eCommerce startup, it might be challenging to meet those quantities. However, partnering with a 3PL fulfillment team can allow your business to ship less and benefit from the discounts afforded to the 3PL. Furthermore, 3PL companies have relationships with most major carriers and utilize automation software to select the most affordable fast shipping available.

Set minimum order value for 2-day shipping

Another way to offset expedited shipping costs is to set minimum spending thresholds. More than 50% of shoppers will add extra products to be eligible for fast and free shipping. Use this to your advantage to increase your AOV (average order value) to help cover the cost of fast or free delivery.

offer 2-day shipping e-commerce

Incentivize membership or subscription models

Improve customer loyalty by incentivizing membership or subscription models where customers qualify for 2-day shipping. Whether the customers must subscribe to monthly purchases or pay a membership fee, this is another way to help offset the cost of your eCommerce startup.


Offering 2-day shipping as an e-commerce startup may be overwhelming, but it is entirely possible. Offering 2-day shipping is a great way to increase customer satisfaction and loyalty. It makes the shopping experience more convenient and enjoyable for customers, leading to higher customer satisfaction and more repeat customers. One of the best ways to offer 2-day shipping consistently is by partnering with a reliable 3PL. Falcon Fulfillment provides 2-day shipping for 96.4% of the 48 continental states and can offer distributed inventory, streamlined order processing, and discounted courier rates.

Talk to one of our agents today to learn how we can help your e-commerce startup offer 2-day shipping.

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essential e-commerce website features

5 Essential E-commerce Website Features

5 Essential E-commerce Website Features

Whether you are a well-established brand or just getting started, a well-designed and executed website is essential to success. A recent forecast by statista.com reveals that e-commerce is expected to grow by over 50 percent during the next four years. E-commerce revenues could reach an incredible 7.4 trillion dollars by 2025. To capitalize on the growing market, e-commerce websites and features must cater to new consumer tastes.

Your website is your storefront. From the homepage to the product pages, each segment has specific elements that cannot go ignored if you want to minimize cart abandonment and increase sales. This article will share 5 essential e-commerce website features that contribute to conversion and customer satisfaction.


Must-Have E-commerce Website Features

Responsive Design

essential e-commerce website features

Now more than ever, consumers are using multiple devices to scroll, shop, and learn. Screen sizes vary from a watch to a 65” monitor. Furthermore, purchases from mobile devices are on the rise. Retail mCommerce sales (mobile purchases) hit $359 billion in 2021, a 15% increase over 2020.

Your e-commerce brand cannot afford to lose market share because your design isn’t optimized for mobile. Investing in responsive design will make your site mobile-friendly, improve the aesthetic of all screen sizes, and increase the time visitors spend on your site. Nixon.com has an excellent responsive design and great design overall. They cater to a youth lifestyle and have invested in ensuring their buying experience is easy across all devices.

User-Friendly Navigation

essential e-commerce website features

There is nothing worse than having to search for what you are looking for and being unable to find the navigation menu. The navigation is like the foundation of your website. It is where every user will go to locate what they are looking for. Make sure the navigation is prominently placed and easy to use. Eye-tracking research shows people spend 80% of their viewing time on the left portion of your website and only about 20% on the right. Consider using secondary navigation on the left side.

An excellent example of solid navigation design is Rothys.com. They have anchored their navigation in the left quadrant with a responsive and extensive dropdown navigation menu for their unique sales verticals. User-friendly navigation enables your consumer to find what they are looking for quickly and effortlessly if a customer has to look too hard for something, they will simply find what they need from a competitor.

Easy and Generous Return Policy

essential e-commerce website features

A return policy is often an afterthought for most e-commerce owners, but it can be an effective marketing tool. With more customers shopping online, the details, clarity, and ease of making a return can make the difference between a “sale” and a “save for later.” Ensure your return policy is easy to find and prominently displayed at the point of sale. Use easy-to-understand language. Lastly, make it as simple as possible for a customer to make a return. The more flexibility they have to change their mind, the more likely they will make the purchase.

In fact, 92% of consumers will buy again if the return policy is easy. A great example of a generous return policy is from Zappos.com. They are so confident in their return policy they have placed it in their top header!

Multiple Payment Options

essential e-commerce website features

Consumers want to be able to pay with whatever platform, card, or app is most convenient for them. Credit and debit card options are standard. In order to improve conversion and attract a broader audience it is important to offer multiple payment options. Payment options that are gaining traction include; Apple Pay, Google Pay, PayPal, Amazon Pay, Boleto, Stripe, Venmo, Square, and E-wallet. With so many ways to pay it can be hard to narrow which will cater to your specific audience. The essential e-commerce website feature to have is more than one way to pay at checkout. This gives consumers flexibility to give you their money easily. After all, you don’t want to prevent a purchase simply because you didn’t offer a payment gateway that was easy for them.

Omnichannel Platform

Omnichannel is the new buzzword in the world of e-commerce for good reason. An omnichannel platform, simply stated, is where a consumer has a seamless shopping experience across every location and channel that offers your product.

This means that the website, social channels, third-party retailers, and the brick-and-mortar stores create a singular brand experience. Omnichannel development requires unification across point of sales systems, inventory tracking systems, marketing efforts, and UI/UX design. A daunting task, especially if your sales efforts have become fragmented. It is worth the time and energy to refocus your brand and your technology integrations though. Expect to see more omnichannel fulfillment and growth in the future.

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.

Read More…


Designing and developing your website to convert as many consumers as possible is a massive undertaking. At Falcon Fulfillment we cannot help you implement the 5 essential e-commerce website elements, but we can give you more time. We alleviate the fulfillment headaches and allow you to focus on your core competencies. From receiving to final mile delivery, we ensure your product gets into the hands of your customers.

We can even manage customer service and returns! Get in touch today to gain back some time to focus on your e-commerce future.

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kitting and assembly

Kitting and Assembly

Kitting and Assembly – What It Is And Why You Need It.

Firstly, companies utilize kitting and assembly services to streamline order fulfillment and expedite product delivery. Specifically, kitting is the process of arranging separate items into a “kit.” In other words, kitting involves packaging and shipping products that require a particular order and arrangement. For instance, a good example of items or products that benefit from kitting is subscription boxes and furniture that requires assembly. On the other hand, assembly arranges the individual components in the packing box that make up the kit. Therefore, any company that sells ready-to-assemble products, subscription boxes, or bundled items can undoubtedly benefit greatly from kitting and assembly services.


What does kitting and assembly service consist of? 

kitting and assembly

  • Construct custom packaging
  • Select individual components for the kit
  • Arrange items in packing boxes, standard, and custom
  • Affix branded stickers/labels/barcodes to items
  • Close package and prep for shipping
  • Add promotional flyers, inserts, and assembly instructions
  • Utilize and install custom dunnage to packing boxes
  • Wrap items
  • Inspect and seal the final box
  • Update SKU to reflect “Kit” SKU in the inventory management system
  • Add custom numbers, logos, and personalization to items or packaging
  • Procurement of right-size packaging
  • Combine multiple items in a single shipment to create a bundle
  • Retail kitting to follow routing guides
  • FBA Kitting
  • Bottle re-labeling – small quantities
  • Bag and tag apparel
  • Construct medical kits prebuilt for immediate lab shipment.

Kitting vs. Bundling

kitting and assembly

Kitting and bundling are often used interchangeably; however, there are subtle differences between the two. Bundling involves adding unrelated products into the same package. These bundles may include all varieties of a product or items that are frequently bought together but do not constitute a kit. Moreover, bundled items can help keep shipping costs down and reduce carbon emissions. On the other hand, kitting requires a specific order and arrangement of those products within the container. Kitting service providers are highly skilled, detail-oriented, and quality control experts. Since some of the same components and elements are used for both bundling and kitting, it’s easy to see why they can be confused.

Common Items that Require Kitting and Assembly

  • Subscription boxes
  • Furniture requiring assembly
  • Promotional sales bundle
  • Seasonal gift baskets
  • Complimentary products received from multiple manufacturers.
  • Medical kit components

Benefits of Using Kitting and Assembly Services

kitting and assembly

Indeed, the time-consuming task of arranging, assembling, and packaging component parts is costly. However, using kitting and assembly services of 3PL can save your business time and money. Additionally, it is worth mentioning that manufacturers may also offer kitting services. To illustrate, here are some of the main benefits:

  • Shorter order fulfillment times
  • Offer more packaged promotions
  • Easier time moving low-selling stock or dead stock
  • Lower overhead costs from warehousing and labor
  • Higher profit margins
  • Access to cost-effective labor management
  • Flexible package options
  • Custom, sustainable, and memorable unboxing experiences
  • Reduced cycle times
  • Adaptable response to customer demand or preferences
  • Access to economies of scale on packaging materials

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.

Read More…


At Falcon Fulfillment, our highly-skilled teams undoubtedly take great care in preparing your packages for maximum customer impact. Above all, one of our fortes is helping create successful subscription boxes that require kitting. By utilizing our kitting and assembly team to prep your packages, you can consequently ensure that your customers receive a well-organized and impactful product. To that end, let us manage the intricate details of kitting and assembly for your e-commerce business, so that you can focus on other crucial aspects of your operations.

Need expert help in designing your kits or subscription boxes? Get in touch with one of our agents today.

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D2C Beer Shipping

D2C Beer Shipping

D2C Beer Shipping

If you thought crafting the most delicious brew was challenging, wait until you delve into the complexities of direct-to-consumer or D2C beer shipping. Brewmasters everywhere are pondering the untapped potential that delivering directly to customers offers. However, beer shipping proves to be as intricate as the diverse taste profiles of beer consumers. Given that beer, along with all alcohol, falls under restricted domestic items, fulfilling orders across state lines necessitates an expert-level grasp of compliance. Nevertheless, despite these challenges, beer enthusiasts nationwide crave access to their favorite brews delivered to their doorsteps. In this article, we will explore how Falcon Fulfillment can alleviate the hurdles associated with direct-to-consumer beer shipping.


What is D2C Beer Shipping?

D2C Beer Shipping

Direct-to-consumer beer shipping (D2C) is the shipping of any type of alcohol directly to the purchaser through delivery by a third-party carrier (UPS or FedEx, etc). In D2C fulfillment, the producer makes the sale straight to the customer, who receives the order shipped to their home or other personal address. To meet compliance standards, a producer must abide by the laws and requirements of the state they ship into, which often includes getting licensed and paying taxes on their shipments. If you are curious, consumer-to-consumer beer shipping is illegal.

Complications of D2C Beer Shipping

Limited States Allow D2C Beer Shipping

Only eleven states plus D.C. permit D2C beer shipping. This is a serious limitation, especially in comparison with the wine industry. D2C beer shipping is available to 14.8% of the (21+) population compared with 96.7% available to wine consumers. The legislation surrounding shipping beer is positioned to change thanks to the COVID-19 pandemic. Beer drinkers in both California and New York have revived interest in changing the prohibition-style laws surrounding beer delivery to consumers. This gives many brewers hope that they will soon have access to a broader beer-drinking audience.

Maintaining Interstate Compliance is Difficult

Every state has different laws surrounding the D2C beer shipping regulations. Even within the eleven states that allow it, there are nuances that must be observed in order to continue to maintain proper licensure. Both the producers and the shipper must have the appropriate licenses in order to ship beer. Not only that but every shipment that contains alcohol must be documented for tracking and tax purposes. Most producers partner with an approved carrier in order to alleviate some of the headaches of maintaining compliance. This leads us to why using Falcon Fulfillment for your D2C beer shipping can help.

D2C Beer Shipping

Advantages of Partnering with Falcon Fulfillment for D2C Beer Shipping

Maintain a Quality Product

From maintaining temperature thresholds to ensuring expedited processing for your suds, Falcon can streamline order processing. This speed and accuracy keep your product fresh for your consumers. Falcon offers flexibility to modify warehouse staging spaces for promotions and ongoing quick-turnaround product sales. Furthermore, they can provide fast transport from the brewery to the distribution location via temperature-controlled FTL. We understand that certain types of fulfillment like D2C beer shipping require extra care to ensure a quality product arrives at your customer’s front door.

Boost Your Brewery Bottom Line

Starting a D2C beer shipping revenue model helps to increase your customer base, build recurring revenue, and satisfy your existing consumers. Not only that but shipping directly to consumers gives your brewery higher margins than wholesale or retail options. Most brewmasters rely on taprooms to get their suds in the hands of their fans. However, the average cost of building and kitting out a taproom is nearly $500k. Bringing the bar to your customer’s home is one of the most affordable ways to increase your bottom line without the capital investment of a bar or taproom.

D2C Beer Shipping

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.

Read More…


Even though the D2C beer shipping market still has significant restrictions, many craft brewers have not yet entered this field. From our distribution center in Kentucky, we can help launch your D2C beer shipping model and satisfy your fans across the U.S.

If you want to find out more about how get in touch with Falcon today.

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3PL outsourcing inventory management

4 Ways a 3PL Can Help With Outsourcing Inventory Management

4 Ways a 3PL Can Help With Outsourcing Inventory Management

According to Investopedia, inventory management is the process of ordering, storing, using, and selling a company’s raw materials, components, and finished products. Inventory management requires significant resources in order to run it efficiently. Inventory is one of the most valuable components of a business; therefore, mismanaging it can be detrimental to the organization’s success. Proficient inventory management streamlines the process of reducing overages and stockouts. If your company is losing time and money due to inefficiencies or staff overload, it is probably time to outsource inventory management to a third party. There are several ways a 3PL can help with outsourcing inventory management.


Aspects of Inventory Management

3PL outsourcing inventory management

Why would I outsource inventory management?

  • You need to improve efficiency.
  • You need more time to focus on core competencies.
  • You no longer have the warehouse space to contain adequate inventory to scale.
  • You need to improve margins on shipping and staffing.

Ways a 3PL Can Help With Inventory Management

Provide Flexible Storage

Many growing e-commerce businesses work out of their basements, garages, and attics when they launch. Eventually, these spaces are inadequate to ensure quick, organized, and streamlined fulfillment. If you’re fulfilling in-house, you may be experiencing these types of growing pains. Alternatively, if you’ve rented a warehouse, it might be an expensive overhead cost. The jumbled mess of packaging, bubble wrap, and returns can become someone else’s problem. Partnering with a 3PL can give you flexible warehousing space depending on fluctuations in sales and seasonal needs. You can scale your warehousing resources quickly.

Faster and Cheaper Order Fulfillment

A 3PL provides expert order fulfillment services. Your business can benefit from bulk discounts by accessing their expertise and broad national network of facilities. Partnering with a 3PL allows your business to leverage economies of scale and negotiate lower shipping and delivery charges. Additionally, your company will likely see an expedited order delivery timeframe. A 3PL fulfillment team can receive an order, package it, and get it out for delivery in a single day. Provided your 3PL has multi-site distribution, you can offer 2-day delivery almost anywhere in the US. Fast delivery times make your company more competitive in the cut-throat e-commerce landscape. Outsourcing this aspect of inventory management is a life-saver.

Advanced Inventory Management Software

Because inventory management and transparency are critical to running a successful 3PL, most use highly advanced technology. This is another cost savings because you do not have to spend money to purchase software or train staff to use it. Your business will be able to use top-of-the-line technology and receive training on how to utilize it to grow your business. The detailed reporting available includes; stock levels, automated inventory tasks, forecasting, and returns management. Here are some benefits of using an automated inventory management system, such as the one Falcon Fulfillment uses.

Reduce Inventory and Fulfillment Staff

As your business grows, you will naturally require more staff in order to fulfill orders. If you have been running a business for more than five minutes, you understand that people are a company’s most valuable and expensive asset. The more you can reduce your inventory and fulfillment staffing risk, the more you can focus on core competencies. When you partner with a 3PL, the stress of whether or not your warehouse staff will show up and get your orders out the door is eliminated. Furthermore, you do not have to bear the expense and risk of injuries from fulfillment staff. When you work with a premiere 3PL like Falcon Fulfillment, you have even greater assurance that your inventory management teams are well-cared for.

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.

Read More…


While we have only discussed four ways a 3PL can help with outsourcing inventory management, there are many more. A 3PL can save you money from reducing shipping costs to staffing. The most valuable resource any entrepreneur has is time. Outsourcing your inventory management to a 3PL gives you back a little more of this precious commodity. With more time, you can focus on what your business does best and leave the inventory and fulfillment piece to the experts!

Are you interested in learning more about how Falcon’s proprietary inventory management software could help your business? Get in touch today.

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Rail vs. Road Transportation

Rail vs. Road Transportation: The Differences

Rail vs. Road Transportation: Key Differences for Efficient Shipping

Rail and road transportation stand as titans in the logistics realm, each offering unique advantages for shipping goods. When seeking efficiency and cost-effectiveness, deciphering between these two modes becomes pivotal. Let’s take a drive into the intricacies of rail vs. road transportation to unravel the optimal choice for your shipping needs.


Rail vs. Road Transportation

Rail Transport: Unveiling the Dynamics

Rail transport, inherently reliant on dedicated tracks, emerges as a resilient mode for long-distance shipping. Additionally, it relies on specialized freight trains, strategically engineered to efficiently transport significant cargo volumes across extensive networks that stretch across continents and nations.

Advantages of Rail Transport:

1. Economies of Scale:
Freight trains capitalize on economies of scale, leveraging their ability to carry enormous loads per trip. This scalability translates into a cost advantage, particularly for long-haul shipments.

2. Environmental Sustainability:
Embracing rail transport contributes to environmental conservation. Its reduced carbon footprint per ton-mile compared to road transport aligns with eco-friendly logistics solutions.

3. Reliability in Long-Hauls:
For time-insensitive shipments, rail excels in reliability, delivering cargo without being significantly affected by external factors that often impede road transport.

Road Transport: The Wheels of Localized Logistics

In contrast, road transport maneuvers goods using trucks, catering adeptly to localized logistics, especially for shorter distances within a country’s boundaries.

Advantages of Road Transport:

1. Door-to-Door Service:
A distinct edge for road transport lies in its capability to offer door-to-door service, providing flexibility and convenience that rail transport might lack.

2. Time-Sensitive Deliveries:
Trucks excel in ensuring timely deliveries, especially for time-sensitive cargo, thanks to their ability to navigate through shorter distances swiftly.

3. Flexibility in Schedules:
Unlike rail, road transport grants the flexibility to tailor schedules according to specific delivery requests, accommodating varying logistical needs.

Comprehensive Analysis of Key Differences

When comparing rail and road transportation, there are important differences to consider. These differences affect things like cost, distance covered, how long it takes to deliver goods, safety, flexibility, and how much can be transported. Understanding these differences is important for making smart choices about how to move things from one place to another. It helps in planning the best way to get things where they need to go, making sure it’s done efficiently and smoothly.

1. Cost Consideration:

Rail transportation triumphs in cost-effectiveness for long distances, leveraging its capacity and reduced fuel consumption.
Conversely, road transport’s cost efficiency shines on shorter routes, often with lower shipping charges and adaptable pricing structures.

2. Distances Covered:

Rail thrives on long-haul routes due to its ability to transport larger volumes across extensive networks.
Roads cater effectively to shorter distances and offer more direct routes with a door-to-door service.

3. Transit Time:

Road transport typically ensures quicker transit due to its agility and flexibility in navigating through various terrains.
Rail transport, while having longer transit times, provides predictability and reliability not hampered by external factors.

4. Safety Measures:

Road transport is more susceptible to accidents due to factors like traffic congestion, weather conditions, and human errors.
Rail transport, with fewer accidents, boasts enhanced cargo safety through fewer handling instances.

5. Flexibility and Customization:

Roads grant flexibility in scheduling and customizing routes to meet specific delivery demands.
Rail operates on stringent preplanned schedules, limiting customization but ensuring adherence to timelines.

6. Capacity and Coverage:

Trucks have significant weight-bearing capacities, but rail haulage triumphs with its capability to move substantial cargo volumes in a single trip.
Rail networks have limitations in coverage compared to roads, necessitating intermodal transportation for comprehensive door-to-door service.

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

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

Read More…

Deciding the Optimal Choice

In navigating the labyrinth of logistics, the choice between rail and road transportation hinges upon various factors such as cost, timeframe, cargo volume, destination, and specific requirements.

Understanding the nuances between these two modes empowers informed decision-making, enabling businesses to tailor their transportation strategies for optimal efficiency, cost-effectiveness, and timely deliveries.

The decision you make today between rail and road transportation lays the tracks for your logistics efficiency tomorrow. Embrace these differences wisely to steer your cargo towards a journey marked by efficiency and punctuality.

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increase average order value

Proven Strategies to Increase Your Average Order Value

Increasing your average order value (AOV) is a key metric for any e-commerce business looking to maximize revenue and grow their brand. AOV represents the average amount spent each time a customer places an order on your website. By implementing effective strategies to increase AOV, you can generate more revenue without necessarily acquiring new customers.


How Do We Calculate AOV?

Before we discuss ways to change our AOV we need to define it. Here is the formula to calculate your own AOV.

The AOV Formula

To calculate your average order value, use the following formula:
AOV = Total Revenue ÷ Number of Orders
For example, if your monthly revenue is $50,000 and you processed 1,000 orders, your AOV would be:
AOV = $50,000 ÷ 1,000
AOV = $50

Tracking your AOV over time will help you gauge the effectiveness of your efforts to increase it.

increase average order value

Let’s explore five proven strategies to boost your AOV and discuss how partnering with a third-party logistics (3PL) provider can help you achieve your goals.

Offer Free Shipping Thresholds

One of the most effective ways to increase AOV is by offering free shipping thresholds. Encourage customers to spend more by setting a minimum order value to qualify for free shipping. For example, “Spend $50 or more to get free shipping.” This incentivizes customers to add more items to their cart to reach the threshold, thereby increasing your AOV.

Create Product Bundles

Product bundling is another powerful strategy to increase AOV. By grouping complementary products together and offering them at a slightly discounted price, you encourage customers to purchase more items in a single order. This not only boosts your AOV but also provides value to your customers by offering them a curated selection of products.

Implement Cross-Selling and Upselling

Cross-selling involves suggesting related or complementary products to customers during their shopping journey, while upselling encourages customers to choose a higher-priced version of the product they’re interested in. Implement these techniques on your product pages, in the shopping cart, and during the checkout process to increase the likelihood of customers adding more items to their order.

Launch a Customer Loyalty Program

Rewarding loyal customers is a great way to increase AOV over time. Implement a loyalty program that offers points, discounts, or exclusive perks for repeat purchases. This not only encourages customers to shop with you more frequently but also incentivizes them to spend more per order to earn those rewards.

Provide Limited-Time Offers and Promotions

Creating a sense of urgency can be highly effective in increasing AOV. Offer limited-time promotions, such as flash sales or seasonal discounts, to encourage customers to make larger purchases. You can also provide bundle deals or gift with purchase promotions to incentivize higher order values.

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.

Read More…


Increasing your average order value is a critical component of growing your e-commerce business. By implementing strategies such as offering free shipping thresholds, creating product bundles, implementing cross-selling and upselling, launching a loyalty program, and providing limited-time promotions, you can encourage your customers to spend more per order. Partnering with a 3PL provider can further support your efforts to increase AOV by offering faster shipping options, optimizing your inventory management, and streamlining your order fulfillment process. By focusing on increasing your AOV and leveraging the expertise of a 3PL, you can unlock new growth opportunities for your e-commerce business and take your brand to the next level.

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

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inventory costs explained

Inventory Costs Explained and Mistakes to Avoid

Inventory Costs Explained and Mistakes to Avoid

Inventory costs are one of the assets and liabilities a company has on its balance sheet. Managing inventory costs is crucial for success. Managing inventory is a complex process that involves multiple vendors, suppliers, fees, and reports. Striking the delicate balance of ordering and storing the right amount of inventory is tricky. Companies don’t want to under-order but they don’t want to over-order. Establishing what to track and when to make adjustments can confuse companies. This article will explain the main inventory costs and common mistakes companies should avoid when creating an inventory management process.


Inventory Costs Explained – Categories

What are the main costs associated with inventory? There are four primary categories of expenses related to inventory management.

inventory costs explained

Purchasing Costs

Purchasing costs are the price paid to a supplier or vendor for a product. If you purchase 100 vintage-style handbags at $15 per item, your purchase cost is $1500. This line item does not include shipping, handling, taxes, or insurance. Some companies calculate the purchase cost within the ordering cost category. It depends on personal preference and the level of detail you desire.

Ordering Costs

Ordering costs typically encompass labor, fees, and transportation involved in shipping your product from the manufacturer to your storage facility. Although these expenses typically represent minor amounts compared to purchase costs, inaccurate measurement can lead to their rapid accumulation.

Carrying Costs

Carrying costs, also known as “holding costs,” refer to fees associated with maintaining inventory in stock. This category encompasses various expenses, ranging from employee wages to warehouse rents. Carrying costs vary significantly depending on the type of product being sold and managed. Particularly, products with a limited shelf-life or requiring consistent handling, movement, and restocking tend to incur higher expenses.

Stockout Costs

Stockout costs encompass any expenses related to revenue loss due to inventory shortages. These costs can accumulate for various reasons, such as failing to update your in-store or online inventory management system before running out of a product. When a customer purchases an unavailable product, it triggers a refund process, potentially resulting in a lost sale if a suitable alternative cannot be offered. Additionally, stockouts lead to lost sales, as many consumers turn to competitors when a product is listed as “out-of-stock,” representing a missed opportunity cost. Fortunately, many of these expenses can be avoided or minimized. Companies can increase their supply chain resilience by partnering with a competent 3PL.

Inventory Costs Explained – What to Track

inventory costs explained

Storage Costs

Storage costs include repetitive payments related to inventory storage management. These include warehouse rents, heating and cooling costs, lighting, security, and employee wages. Any fee for maintaining a clean, organized, and pest-free space would be considered a storage cost. Holding onto inventory that is slow-moving or considered deadstock increases storage costs quickly.

Capital Costs

Capital costs are typically the largest upfront investment regarding inventory costs. They are a one-time fee required to physically store and carry inventory to the designated storage facility. Capital costs can include land purchases, building or buying a warehouse, and sourcing inventory equipment (e.g., forklifts, pallets, storage racks/shelves, etc.).

Damage & Obsolescence

Tracking inventory costs closely is crucial as items often get banged, bruised, and battered during the shipping and receiving process. Recognizing patterns of damage enables corrective action; otherwise, it’s akin to wasting money. Similarly, obsolete items represent money left on the shelf, as businesses continue to bear the costs of unsold and outdated products on their balance sheets.

Theft and Fraud

Solving theft and fraud related to inventory costs necessitates meticulous tracking and the use of precise inventory management systems. While it won’t catch every criminal that threatens the bottom line, it will undoubtedly show where items are going missing.

Taxes and Insurance

“There is nothing certain in life but death and taxes.” (Paraphrase Ben Franklin) Inventory costs of taxes and insurance are determined by many factors, including but not limited to; types of product, location, and local ordinances related to product distribution. It is best to consult a lawyer regarding the nuances and costs associated with this category. Alternatively, partnering with a 3PL with extensive experience in your industry can typically provide introductions to legal counsel and help ballpark costings where appropriate.

Inventory Costs Explained – Mistake to Avoid

inventory costs explained

Understocking

There is nothing worse than missing out on a sale because of stockouts. Proper inventory management systems and tracking can help forecast accurately and avoid losing sales. It is more important to overstock than understock. For one, you miss a sale. Second, you can lose a customer permanently. Third, you have to issue refunds which costs you additional money in employee wages and customer service strain. Include inventory management in product forecasting to help avoid understocking whenever possible.

Failing to Include Inventory Management in Forecasting Sales

The entire process of managing inventory is complicated. Including inventory management in forecasting will improve accuracy and minimize overstock or understock situations. Inventory management data will include product levels, cycles and highlight stock value categories. This helps businesses forecast not based on sales numbers alone but the overall health and movement of products through the inventory management process.

Launching a Product and Retroactively Managing Inventory

Launching the business and then getting around to managing inventory can be tempting. This is a significant mistake because by the time inventory management is a need; it has become a problem. Implementing inventory management before a product launch can help with forecasting, restocking timelines, and reducing stockouts. Accurate sales data, stock levels, and performance are readily available by preparing to track inventory management from the beginning.

Always Buying in Bulk

It is important to buy what you need when you need it. Sometimes bulk purchasing is ideal. Other times, it is a gamble. It might be tempting to buy 1000 units of your most popular product, but it could cost you if that item trends out or becomes obsolete before you can sell them.

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.

Read More…


Explaining or managing inventory costs involves a lot of information. Many owners lose sleep over this area of business. Falcon Fulfillment relies on a proprietary inventory management system boasting a 99.9% accuracy rating. We take pride in providing our clients with accurate data, enabling them to make optimal decisions for their businesses.

If you would like to learn more about how Falcon can help streamline your inventory costs, get in touch with one of our agents today.

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