Bubble Wrap Appreciation Day
Bubble Wrap Appreciation Day
Bubble wrap is more than just a packaging protector – it’s also a beloved toy for both kids and adults! Additionally, the popping is uniquely satisfying and even soothing. Bubble Wrap Appreciation Day allows us to reconnect with the simple pleasures of plastic bubbles.
A Brief History of Bubble Wrap

Furthermore, bubble wrap was invented in 1957 by engineers Alfred Fielding and Marc Chavannes, originally as a textured wallpaper. But it failed as a decoration and they soon realized its superior protective qualities as packaging material.
Sealed Air Corporation now manufactures Bubble Wrap brand bubble cushioning. The term “bubble wrap” has become a generic trademark for the material. Many brands produce the air-filled wrap, but Bubble Wrap remains the best known.
The first commercial bubble wrap was introduced in 1960 for industrial shipping use. Later adopted widely by e-commerce companies to protect goods in transit, this indispensable packaging material is now a ubiquitous presence.
Why We Love Bubble Wrap

There’s just something immensely pleasing about bubble wrap’s look and feel. The orderly rows of encapsulated bubbles beg you to squeeze them pop by pop. And who can resist?
Popping bubble wrap bubbles triggers a little burst of accomplishment. It’s instant stress relief and satisfaction. The tactile experience provides an outlet for nervous energy or frustration.
Beyond its functional protecting and cushioning use, bubble wrap has become a beloved fidget toy for kids and adults alike. Its versatile appeal makes it a superior desk accessory for distraction and amusement.
Celebrating Bubble Wrap Appreciation Day
Bubble Wrap Appreciation Day allows us to take a moment to enjoy this simple sensory pleasure.
First celebrated in 2001 in Bloomington, Indiana, the holiday commemorates the day a local radio station accidentally broadcast the sound of popping bubble wrap on air. But the satisfactions of bubble wrap have long been discovered by anyone who’s handled those plastic pillows of air.
Here are some fun ways to observe this special day:
Bubble Wrap Popping Parties
Gather co-workers, family, or friends to see who can create the loudest pops or continously pop the longest strip of bubbles. Provide prizes for most bubbles popped!
DIY Bubble Wrap Furniture
Furthermore, temporarily cover chairs or small tables in bubble wrap secured with painter’s tape. Protect surfaces from adhesive residue. Now you have a poppable place to sit or set your coffee mug!
Bubble Wrap Stress Balls
Additionally, fill zippered bubble wrap sleeves with rice, beans, or air and securely seal. Knead and squeeze these portable stress relievers anytime you need to decompress.
Bubble Wrap Fashion
Moreover, design bracelets, necklaces, rings, or other jewelry fashioned from bubble wrap strips glued or taped into accessories. The bubbles add texture and provide stress relief you can wear!
Popping Playlists
Furthermore, create the perfect bubble wrapping popping soundtrack with upbeat songs about bubbles and popping like “Pop Goes the World” by Men Without Hats and “Bubbly” by Colbie Caillat.
Appreciating Bubble Wrap Every Day
Set aside a few minutes from your busy day for some bubble wrap appreciation. Order some bubble wrap rolls from an online retailer so you’ll always have it on hand.
Moreover, keep a stash in your desk drawer at the office for bubble wrap fidgeting breaks. Share strips with co-workers who seem like they need to decompress.
Additionally, add a sheet to a friend’s package or hide some in a birthday card for fun hidden nostalgia.
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…
However you choose to enjoy it, bubble wrap popping provides simple, inexpensive amusement. Rediscover small sensory pleasures with Bubble Wrap Appreciation Day!
Need Bubble Wrap help? Falcon is your Bubble Wrap ExpertTM!!
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Making Returns Easy - 4 Ways to Streamline Returns Management
Making Returns Easy
A seamless return process helps increase customer satisfaction and retention, and minimize the negative impact they have on your business. Returns happen for various reasons, including; unmet expectations, damaged or defective products, and incorrect fit. Surprisingly, last year, an average of 8.1% of all purchased products were returned. The returns management process, or reverse logistics, involves customer service, inventory management, and shipping logistics. It requires intentional planning, clear communication, and staying customer focused. Here are some of the key aspects of making returns easy.
Communication
Simplifying and making returns trouble-free boils down to communication. Communication is at the center of straightforward returns, whether it is communicating with customers or updating internal staff and protocols.

Communicating with customers
The main focus of your returns management process should be to make your customer’s life easy. When a customer is dissatisfied with a purchase, making the process to return the item can save the relationship and even win a brand advocate. Firstly, start by outlining the process for shipping a product back and requesting a repair, refund, or exchange. Then set expected timelines for each aspect of the returns process. Customers want regular updates on the status of their return and how long it will take to resolve it. Over-communicate with customers throughout the returns process. This builds trust and confidence in your brand. Clear and consistent communication can lead to the purchaser returning to your company despite a poor buying experience.
Streamline Internal Communication
Not only do your customers need regular updates, but so do the staff that will receive the product, evaluate it, and adds them back into the inventory system when possible. Invest in developing a system of internal communications so that when items arrive at your warehouse, they don’t overwhelm staff or clutter your storage area. A centralized method to receive, evaluate, and update inventory systems will ensure a seamless process. A few crucial parts of the internal returns process include:
- The customer requests a return, and internal teams either approve or disapprove the request.
- Approved requests will receive logistics instructions to return the item to the company.
- The product is received in the warehouse.
- Staff determines if the product can be resold or need to be discarded, liquidated, or destroyed.
- Depending on protocols for the product, staff approves a refund, packages a replacement product, and ships it.
- Products that can be resold are added back into the inventory management system and restocked
Returns Automation
One of the best ways to make returns effortless is to automate the returns management process. This includes implementing customer portals to begin the returns process without speaking with a customer service team. Furthermore, most aspects of communication with customers can be automated. There are several robust returns management software systems available. Here are a few of the highly reviewed options.
In addition to utilizing an automation software program, you can partner with your fulfillment teams to streamline the returns process. At Falcon Fulfillment, we specialize in e-commerce returns management. Working with a 3PL you trust can ease concerns about the returns process and help boost customer satisfaction. Plus, most 3PL companies already have a streamlined, efficient returns system refined over time with hundreds of returns. In other words, they have the expertise to do it right.
Integrated Technology

Integrating your POS systems with inventory management and returns management creates a streamlined process. Getting all the systems and software platforms to communicate with one another can be tricky. As you evaluate and set up your technology, ensure that integrations are “straightforward.”
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 avoiding returns altogether isn’t always possible, it is possible to make the process easy. Ensure you have intentionally created a seamless process for your customers. Remember that making their life easy is the most crucial aspect of returns. If a customer has a good experience with getting a refund, replacement, or credit, they will be more likely to shop with your business again. If they have a poor product experience and a difficult return process, you have lost them for good and will likely also have to deal with poor customer reviews. Partnering with a 3PL specializing in returns management is another option when implementing a new returns process.
Get in touch today if you want to learn more about how Falcon Fulfillment can help with your returns.
Let’s Talk!
Things to Consider When Switching 3PL Providers
Things to Consider When Switching 3PL Providers
If you’re a business owner considering switching 3PL fulfillment providers, then you’re likely well aware of the many benefits of outsourcing your order fulfillment. Working with a third-party logistics (3PL) provider can streamline your business operations and reduce labor costs while providing customers with a better overall experience.
However, with so many 3PL fulfillment providers, knowing which is right for your business can take time and effort. To that end, here are some things to consider when you’re deciding whether or not to switch 3PL fulfillment providers.
Evaluate Your Current Provider

It’s important to take a close look at your fulfillment provider. Specifically, are they meeting your needs in terms of service, cost, and reliability? If not, it may be time to look for a new provider. Here are seven questions to ask when reviewing your fulfillment partner.
- Are they meeting accuracy and on-time delivery expectations?
- What services are included in your fulfillment package, and are they meeting/exceeding your business needs?
- Are the fees you are paying in line with industry standards?
- How accurate and transparent is the reporting for tracking inventory and orders?
- Are they handling returns and refunds?
- On a scale of 1-10 (10 being excellent), how is the communication between you and consumers?
- Do they have the ability to scale with plans you have for the future?
Research Potential Providers

Once you’ve identified potential providers, it’s time to do research. Read reviews and testimonials from other businesses that have used their services, comparing rates and solutions. If you don’t know where to begin, you might want to start with WarehousingAndFulfillment.com. This free service matches your specific business needs to more than 500 prescreened 3PL companies.
In addition, to super charge your search, you should prepare and submit RFP’s (Request For Proposal) to a few new providers. This will let you see what other companies you have targeted have to offer and if they are a good fit for you. Don’t know how to create an effective RFP? Check out our guide on common mistakes to avoid here.
Consider Your Customers’ Needs

Your customers should be your top priority. Chiefly, think about how the new provider will impact their experience. Could they receive their orders faster? Are there more choices for delivery? Do they provide better packaging and protection for parcels? What are the unique problems you are trying to solve in your supply chain and fulfillment needs? Contemplate the solutions you will be looking for in a new partner. Here are some common customer pain points that can be alleviated by working with a 3PL partner.
- Long lead times that result in stockouts
- Slow delivery timelines
- Lack of tracking and delivery communication
- Difficulty in making a return or exchange
- Items arriving damaged
- Disconnected inventory management systems that result in inaccurate stock counts (leading to customer frustration at the POS)
Ask Questions

Before making a decision, make sure to ask any questions you may have about the services offered by the potential provider. Here are ten questions to get your creative juices flowing:
- What is your experience in omnichannel fulfillment? In other words, will your technology integrate across my sales channels?
- What kind of automation do you implement within your warehouses?
- What other technologies do you use to streamline operations?
- How do you handle receiving from vendors? Will I be required to palletize or barcode my inventory before arrival?
- How do you handle lost inventory or incorrect orders?
- How are your fees structured? Do I get charged for individual services like; kitting, picking, packing, and shipping or do you offer an all-inclusive option?
- What are your product specialties?
- Is there a minimum monthly order volume required to work with your organization?
- Do you offer same-day order processing?
- What kind of accuracy guarantee can I expect?
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…
Switching 3PL fulfillment providers can be daunting, but it is often necessary to ensure that your business is getting the best possible service. Not all 3PL companies are created equal. Take time to evaluate your current provider, research potential providers, and always keep your customers’ needs in mind. You can improve your operations and provide a superior customer experience with the right 3PL provider.
Falcon Fulfillment are expert in logistics, supply chain management, and e-commerce fulfillment. We have worked with brands in the beauty, pet, and home goods industries, among many others. Our dedicated account managers make communication between your company and fulfillment teams seamless. We don’t work with clients just because they meet our criteria; we partner with them. When our customers win, we win.
Find out how partnering with Falcon can help your company streamline fulfillment and exceed customer expectations. Reach out to one of our agents today.
Let’s Talk!
Global Impact of Trump Trade Review on Supply Chains
Where We Are At
The recent announcement of the Trump trade review has caught the attention of businesses worldwide. Indeed, many companies were initially anxious about the possibility of steep tariffs on goods coming from China, Mexico, and Canada. However, the administration’s decision to delay immediate levies and instead focus on a thorough investigation has offered a brief reprieve. Nevertheless, the global supply chain is already responding to the possibility that new trade rules could be around the corner. Consequently, stakeholders in Third-Party Logistics (3PL), Fulfillment Services, and Warehousing and Distribution must remain vigilant. Therefore, understanding the implications of the Trump trade review becomes more critical than ever. In this blog, we will explore how this evolving situation might affect industries ranging from Order Fulfillment Solutions to E-commerce Fulfillment, and how businesses can prepare accordingly.
Understanding the Trump Trade Review
Above all, the Trump trade review aims to assess trade deficits, currency manipulation, and the balance of trade agreements with key partners. The review includes countries like China, Mexico, and Canada, which are integral to the United States’ Supply Chain Management network. This assessment could lead to policy changes designed to protect domestic industries. However, such measures might pose challenges for companies reliant on cross-border trade. Although the final outcome is uncertain, businesses should start evaluating potential shifts in Inventory Management, Shipping and Delivery practices, and even Last-Mile Delivery solutions. Furthermore, policymakers are emphasizing a more methodical approach, which may leave time for supply chain actors to adapt.
Potential Impact on Third-Party Logistics (3PL) and Supply Chain Management

First and foremost, Third-Party Logistics (3PL) providers depend heavily on streamlined cross-border operations. Consequently, any change in tariffs or trade regulations following the Trump trade review could disrupt the efficiency of Freight Forwarding, Cross-Docking, and other logistics processes. In addition, Reverse Logistics may be affected by any new mandates, as returning goods could become more complicated under stricter rules. Moreover, providers specializing in Bulk Shipping might find that altered trade agreements introduce additional paperwork or cost. Indeed, 3PL companies that proactively optimize routes and implement Supply Chain Optimization strategies will be best positioned to navigate a turbulent marketplace.
Effects on Warehousing, Distribution, and Fulfillment Services
Undoubtedly, Warehousing and Distribution centers are vital hubs that facilitate Order Fulfillment Solutions. If new tariffs or trade terms arise from the Trump trade review, the cost of holding and moving inventory could increase. For instance, Vendor-Managed Inventory (VMI) models might be pressured by higher import costs, spurring adjustments in stocking levels. Consequently, businesses may need to bolster their Order Tracking and Management capabilities to stay ahead of compliance hurdles. Additionally, providers of Fulfillment Services will likely need to invest in technology, staff training, and new strategies to remain competitive under evolving trade policies. Therefore, a robust alignment with supply chain partners could mitigate potential risks.
Navigating Cross-Border Complexities
International commerce is intricate under normal circumstances. As a result, if the Trump trade review influences regulations, cross-border shipments could face delays or additional levies. This heightened complexity may prompt more reliance on Customs Brokerage to ensure accurate declarations and tariffs. Similarly, companies might explore Dropshipping Solutions or alternate International Shipping and Import/Export routes to bypass potential bottlenecks. For many, Multi-Channel Fulfillment strategies will become crucial, helping to distribute stock more evenly and minimize customs challenges. For instance, Kitting and Assembly performed in a local Fulfillment Center could reduce cross-border friction and enhance overall flexibility
Adapting Order Fulfillment Solutions and E-commerce Fulfillment
Equally important is the impact on E-commerce Fulfillment. With online sales skyrocketing, rapid deliveries are a top priority. However, new trade requirements might slow down the flow of products, ultimately affecting Warehouse Automation timelines and Transportation Management System (TMS) setups. Indeed, speed is the name of the game in online retail, so any delays caused by new tariffs or customs protocols could harm customer satisfaction. As a result, e-commerce companies should examine their Order Accuracy and Quality Control measures, ensuring smooth operations even if political or economic changes occur. Moreover, investing in Inventory Tracking Software becomes more essential, particularly if businesses must quickly adjust to new sourcing or distribution requirements.
Ensuring Smooth Shipping and Delivery
Timely Shipping and Delivery hinges on several integrated processes. Though the Trump trade review has postponed immediate tariffs, shipping lanes may still be subject to sudden adjustments. In fact, unforeseen fees or border inspections could arise if the review ultimately leads to trade barriers. Therefore, companies must evaluate their Safety and Security Measures in Warehousing to guarantee that goods move safely across borders. Moreover, advanced 3PL Technology Solutions offer real-time visibility into shipments, aiding in Carrier Selection and Management. For instance, businesses can leverage Packaging Optimization to reduce dimensional weight charges, or engage in Freight Rate Negotiation to secure more favorable terms. Overall, adaptability will be the hallmark of success in this climate.
Monitoring Inventory Management and Reverse Logistics
Another area that could be heavily influenced by the Trump trade review is Inventory Management—specifically with regard to Freight Audit and Payment Services and Inventory Forecasting. Indeed, if tariffs rise or trade becomes more restrictive, planning for stock levels will become more complex. Therefore, Reverse Logistics strategies might also change, as products returned from international customers could incur additional fees. It is important to track metrics such as Order Fulfillment Metrics and Reporting and to explore Scalable Fulfillment Solutions that can rapidly adjust to fluctuations in demand or supply routes. Furthermore, efficient Return Merchandise Authorization (RMA) Processing can prevent disruptions that stem from evolving trade practices. Keeping an eye on On-Time Delivery statistics is also essential, because unexpected border checks could lead to higher costs and unsatisfied customers.
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…
the Trump trade review serves as a reminder that global trade can shift rapidly, affecting businesses of all sizes. Many anticipate that policy changes, if they come, will affect everything from Inventory Cycle Counts to Cloud-Based Warehouse Management System (WMS) functionalities. Consequently, organizations must be vigilant, adopting a proactive stance that includes Demand Planning, Outbound and Inbound Logistics adjustments, and even Order Splitting and Routing. By embracing robust Fulfillment Cost Analysis and staying informed about potential shifts, companies can weather the uncertainties ahead.
Ultimately, whether you are a large multinational or a small business exploring FBA models, thorough preparation and strategic planning will be paramount. Indeed, by staying agile and leveraging modern supply chain technologies, organizations can turn potential disruptions into opportunities for growth in the face of evolving trade policies.
Let’s Talk!
9 Easy Ways to Thank Customers
9 Easy Ways to Thank Customers
Every business owner is thankful for their customers. Without them, the company ceases to exist. Businesses that actively thank their customers and show appreciation build loyal customers and stand to be more profitable than those that consider gratefulness an afterthought. Research shows that 68% of customers change brands because of “perceived indifference.” Having a quality product isn’t enough to build a loyal customer base. Businesses need to show a little love and care for the people responsible for keeping the company running! It is important to understand the benefits of thanking customers and selecting a few appreciation strategies to implement if you haven’t already! Here are 9 easy ways to thank customers.
Revolve your world around the customer, and more customers will revolve around you.
Heather Williams
Why thanking customers is essential!
Going above and beyond to thank customers cannot be undervalued. Here are the main reasons a business should implement a customer appreciation strategy.
- It helps build strong customer relationships and trust
- Increases retention
- Creates brand advocates
- Boosts long-term customer value
Easy Ways to Thank Customers

Offer expertise and education for free
Companies that readily share their expertise show their customers they want them to get the most out of their purchases. Sharing articles, posts, and videos with customers that help educate and equip them is customer appreciation gold! For example, if your business sells hand-poured candles. Share articles explaining how to get the most-even burn, reuse the candle container, or which scents are best for which moods. These things help customers love your product more and show that you don’t stop at the point of sale. Another excellent customer appreciation idea for a company that sells small appliances would be sending out reminders and informative emails to maintain the product, i.e., cleaning the filters.
Give back to the community
Nothing says you care more than supporting and getting involved in your community. Investing your time or resources to cause(s) your customers love shows you aren’t just out to get their money. The most successful example where this idea works is when the cause relates to the product or service the business offers. For example, a pet company that sells dog toys and gear donates 10% of its annual revenue to a local rescue shelter.
We make a living by what we get, but we make a life by what we give.
Winston Churchill
Create a personalized “thank you” video
With new AI technology, you could create a general thank you video with a code-based moment(s) where someone’s name is inserted. Before you think this is entirely unrealistic, consider the “Elf Yourself” videos! Here’s a sample script:
“Hey {Name},
Thank you so much for your recent {Brand name} purchase. We love what we do and know you will love your {product name}. You are the reason we do what we do. We would love to see you in action. Post a pic or video {wearing, using, etc.} and make sure to tag us!”
While this could take a little upfront design and planning, it makes the thank you more personal and fun! Customers love both.
Create a memorable unboxing experience

When a branded box arrives, it has a greater impact on consumer brand awareness. The customer gets the sense that your business cares deeply about your products arriving safely. Creating a memorable unboxing experience helps your brand tell its story in a way that drives customer loyalty.
Send thoughtful gifts
The key here is to ensure the gifts are thoughtful. Sending a branded pen is not an ideal representation of your business unless you sell paper goods. If that is the case, make sure the pen is extraordinary. The main idea around sending a thoughtful gift is to include something that is either personalized or practical. Some good examples of thoughtful gifts would be a travel-size hand cream included with the purchase of other skin care products. How about adding a glasses repair kit with a sunglass purchase? How about leather conditioner included when someone purchases a new handbag? Make sure to let your customers know they are a “bonus” so they don’t assume they came as part of the package.
Create a customer loyalty program
Rewarding your most loyal customers is always a good idea. The consumers who love your brand will share it even more, when they are recognized or rewarded for coming back repeatedly. According to Shopify, as many as 84% of consumers say they’re more apt to stick with a brand that offers a loyalty program. And 66% of consumers say the ability to earn rewards changes their spending behavior. A million ways exist to develop a loyalty program, but the main idea is to keep your customers happy and engaged. Try a few different strategies and see what works well.
Handwritten notes

Handwritten notes are one of the easiest ways to show appreciation to customers. It isn’t expensive, and it doesn’t take a lot of effort to throw in a handwritten note. It might be challenging at scale, but creating thoughtful notes that rotate within orders can make a difference. You can even pay to have a robot handwrite your thoughts and send the cards! Check these 25 examples of thank you note messages that can be easily modified for your business.
Host Giveaways
Everyone loves a good giveaway. Create a giveaway for previous customers and potential new customers. These are especially effective when they involve new product releases or high-value items. Allowing previous customers to have extra entries is another way to say thank you. Just be aware of “giveaway rules” that vary by state, so you don’t inadvertently get yourself in legal hot water.
Showcase a customer of the month
An easy way to thank your customers is to showcase them. Whether you share a remarkable story via email marketing or on your social channels, highlighting why you appreciate a customer is special. Not only will the customer being featured love it, but others will also see that you notice when a customer is exceptionally loyal, patient, or kind. You can use any criteria relevant to your industry to select your customer. Keep in mind that some may not want to participate because of privacy. You can use an alias for your uber private consumers.
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…
There are many easy ways to thank your customers, but the most important thing is to do it! No matter how you decide to show appreciation, keep the customer at the center of your gratitude. Create a strategy that is personalized and practical. By implementing thankfulness, you will build stronger relationships and trust and increase long-term customer value. Ultimately, being a grateful company will translate to a healthier bottom line.
Falcon Fulfillment is in the business of helping companies get products into their customer’s hands, but to do it with the highest level of excellence. We can help include personalized notes with our kitting services, and we specialize in branded packaging options.
Get in touch with one of our specialists today, and thank you for being here. We are grateful to have the chance to serve your company!
Let’s Talk!
Calculating Ending Inventory - What you need to know
What is ending inventory?
Determining the amount of stock left at the end of a sales cycle is important. Ending inventory, sometimes called closing inventory, is the total value of unsold goods at the end of an accounting period. This valuation provides insight into assets, gross profit, pricing, ordering, and production. The simplest formula for calculating ending inventory is to add net purchases to your beginning inventory and subtract the cost of goods sold.

Why calculating ending inventory is necessary.
Calculating ending inventory is vital to know how much you are selling and for how much. It is also a key aspect of the accounting process because it directly affects your balance sheet and tax burden. Here are some reasons why getting your ending inventory valuations right is essential:
- Verifies recorded inventory matches, actual physical inventory counts
- Highlights inventory shrinkage issues due to human error, theft, or other reasons.
- Reveals how much revenue you are making on what you are selling.
- Minimizes overstock by providing accurate inventory counts.
- Delivers excellent insight and control over stock-related and financial decisions
- Impacts gross and net profits as well as tax liabilities.
- Allows investors and financial institutions to evaluate for funding events
- Selecting the best method and staying consistent with that method will provide insight into the health and profitability of the company.
Selecting the best method to calculate your ending inventory and staying with that method is imperative to minimize accounting errors and meet company needs. The choice can affect the stated value of the company’s assets, profit, and tax liability. Before filing your income or end-of-year taxes, it is necessary to calculate your ending inventory correctly.
What are the different methods to calculate ending inventory?
Knowing your ending inventory gives you insight into how to make necessary business decisions related to stock, finances, and even fulfillment needs. Here are a few standard methods to calculate ending inventory.

FIFO method (first in, first out)
FIFO is a valuation method that assumes the first purchased inventory was sold first. The COGS (cost of goods sold during the period) is based on the stock bought earliest in the accounting period. This approach is suitable for many companies because it follows common operations strategies where older items are sold to make room for newer goods. This method is commonly used during an inflationary period. However, it can produce lower COGS and higher gross profits. This calculation often results in higher income tax burdens for the period.
LIFO method (last in, first out)
LIFO is another valuation method that assumes the most recently purchased goods are the first to be sold. This method closely reflects the actual cost of replacing the current inventory. It is typically used during periods of increasing prices. Companies can report higher COGS and lower gross profits, reducing the tax liability during the period. A significant drawback of this method is that it is rarely accepted outside of the US because it is not allowed under International Financial Reporting Standards (IFRS).
WAC method (weighted average cost)
The weighted average cost method (WAC) is where a business average all inventory costs to calculate COGS and ending inventory. Calculate it by dividing the total amount you spent on your inventory by the total number of items.
Here is a simple example. Let’s say you started your fiscal year with an inventory balance of 1000 items at $3.00 each. You purchased an additional 500 items at $3.50 later in the accounting period. Your ending inventory would include 1500 items valued at $3.17 each, totaling $4,750.
This method is the simplest way to evaluate ending inventory; it is best suited for companies that sell similar products. As businesses expand their product offering, calculating ending inventory becomes more complex.
Gross profit method
The gross profit method estimates ending inventory where an actual physical count is not desired or necessary. This method uses the company’s expected gross profit margin for the current period as a starting point for estimating COGS and ending inventory. Companies will use their historical gross profit margin as a guideline for their current expected gross margin. Keep in mind that this method is not acceptable for audited financial statements.
Here are the steps to calculate gross profit:
- Multiply the net sales during the current period by (1 – expected gross profit margin) to obtain an estimate of COGS.
- Apply the standard inventory valuation formula: Add up the period’s beginning inventory and the cost of all further inventory purchases to date. Then, subtract the estimated COGS to obtain the ending inventory.
Retail method
This method is best for retail stores looking to estimate inventory counts for a specific timeframe without doing a physical count. It uses the cost-to-retail ratio.
Total Cost Of Goods For Sale / Retail Value Of Those Goods = Cost-To-Retail Ratio
Once you have the cost-to-retail ratio, you multiply this number by the net sales for the period to estimate COGS. Then you plug this amount into the standing ending inventory formula listed above. This is an imprecise count but is helpful to assess ending inventory until a more accurate method can be performed for accounting and tax purposes.
How partnering with a 3PL can help with inventory management.
A 3PL provider can help with inventory management in several ways. First, they can provide warehousing and fulfillment services, which involve storing inventory, packaging, and shipping orders. They can perform physical stock counts when needed. They can also help track inventory, which is essential for keeping accurate records and preventing out-of-stock or overstocked situations.
In addition, a 3PL can help with inventory forecasting, which involves predicting future demand for products. Overall, a 3PL can be an excellent asset for any business that needs help with inventory management. By outsourcing complex inventory tracking and management task, companies can save time and money while improving customer service and satisfaction.

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…
Because inventory directly affects your business’s balance sheet and income, it is necessary to choose a method that aligns with business needs and operations workflows. Whether you manage inventory in-house or outsource it to a 3PL partner, calculating accurate ending inventory is an essential metric for your business.
If you want to learn more about how Falcon Fulfillment can become your inventory management partner, get in touch with one of our agents today.
Let’s Talk!
Consider a 3PL Fulfillment Solution as Your Last Employee
The last employee your product sees, the 3PL fulfillment solution
For e-commerce businesses, order fulfillment can become complex and labor-intensive as your operations grow. While you scale up, it’s impractical and inefficient to handle all fulfillment in-house. This is where a third-party logistics (3PL) provider can act as your last employee – skilled specialists who manage your entire supply chain.
A good 3PL fulfillment solutions partner lifts the fulfillment burden off your shoulders so you can focus on high-level strategic decisions to grow your e-commerce business. In effect, they function as an extra department or employee that you don’t need to manage.
Benefits of Outsourcing Fulfillment to a 3PL Company
Here are some of the key benefits of using 3PL fulfillment solutions:
Access to Warehouses and Advanced Technology
A fulfillment company has warehouses optimized for e-commerce order processing with advanced inventory management systems. They invest in the best warehouse management systems (WMS), warehouse automation, and inventory tracking software so you don’t have to.
Lower Operational Costs
By leveraging the economies of scale from the 3PL’s network and consolidating your orders, you can reduce freight and shipping costs significantly. Things like cross-docking, order splitting, shipment consolidation and bulk shipping rates become possible.
Expert Shipping and Delivery Management
Get access to discounted shipping rates from carriers and optimized last-mile delivery solutions. A good provider has strong relationships with carriers and logistics partners to negotiate the best shipping prices.
High Quality Order Processing
With rigorous SOPs and KPI monitoring, 3PLs ensure quick turnaround times and excellent order accuracy. This improves customer satisfaction and allows you to scale order volumes rapidly.
Seamless E-Commerce Integration
Your web store or marketplace can be directly integrated with the 3PL’s order management system via API. As you grow sales channels, they can provide multi-channel fulfillment.
Improved Supply Chain Visibility
With their TMS platforms and inventory tracking software, you gain real-time visibility into your supply chain. See inventory levels, shipments in transit and delivery status updates for better planning.

How a 3PL Fulfillment Company Operates as Your Employee
When you engage a 3PL partner, you essentially add a entire logistics department to your organization. 3PL fulfillment solutions manage complex logistics processes end-to-end so you can focus on high-level business growth. Just like an employee, the 3PL fulfillment provider takes over these key operations:
Receiving and Managing Inventory
As shipments from suppliers arrive at their warehouse, they receive goods into inventory. This involves unloading, counting, inspecting and moving goods to storage locations. Some even provide VMI (vendor managed inventory) solutions where they directly interface with your suppliers to replenish stock levels automatically based on demand forecasts or inventory thresholds.
Storage, Handling and Inventory Tracking
Their fulfillment center has the specialized infrastructure to safely store goods for however long you require – whether its short-term storage during peak seasons or long-term storage of slow moving items. Inventory is accurately tracked at all times across barcode scans and cycle counts. Custom reporting provides inventory status updates.
Kitting, Bundling, Assembly and Packaging
Based on your BOMs (bills of materials) and product specifications, they can bundle items into kits, gift sets or combo packs. This light manufacturing also includes product assembly, attachments, inserts, customized packaging etc.
Order Processing and Fulfillment
As e-commerce orders come in, they handle the entire fulfillment process – picking, sorting, packing and shipping of orders with high accuracy. This involves outbound logistics like obtaining discounted shipping rates, optimizing delivery routes, interfacing with carriers for pickup and drop-off and tracking shipments.
Customer Service and Returns Handling
They field customer queries on order status updates, expected delivery dates and more so you don’t have to. For product returns and RMAs, they inspect returned items, process refunds or replacements and manage reverse logistics back into inventory.
Analytics and Performance Reporting
With their technology stack, they provide complete visibility into all key fulfillment metrics and KPIs through custom reports and analytics dashboards covering costs, order processing times, accuracy, capacity utilization etc.
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…
As you can see a 3PL that specializes in e-commerce fulfillment provides end-to-end services that function like a logistics and supply chain department minus the overheads of managing resources in-house. Leveraging external specialists lets you scale faster by optimizing fulfillment costs and quality. Focus your efforts on sales, marketing and product development – the core of growing an e-commerce business.
Looking to find a 3PL fulfillment solution so you can focus on your business? Work with Falcon Fulfillment and get your time back.
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The Differences Between Logistic Types. Which is right for you?
The Differences Between Logistic Types: 1PL, 2PL, 3PL, 4PL, and 5PL.
Logistics management is an important component of any successful business. So you must choose the best logistics provider for your business to ensure your goods and services are delivered on time and at the right cost. Most people know about 3PL (third-party logistics), but there are several types of logistics providers. Understanding the differences between the different logistic types; 1PL. 2PL, 3PL, 4PL, and 5PL, can help you make the right choice for your business.
1PL, 2PL, 3PL, 4PL, and 5PL Defined

1PL
First-Party Logistics, or 1PL, is the most basic logistics provider. In this relationship, consisting of a supplier and retailer/customer, businesses use their resources to manage logistics and distribution. This may include hiring in-house staff, purchasing transportation, and leasing warehouses. Consequently, the shipping and receiving occur between the two parties involved, with no other middlemen involved in the process.
2PL
2PL stands for Second-Party Logistics and is an outsourced provider. In essence, Second-Party Logistics Providers focus solely on the transportation sector of business. For instance, examples of 2PLs include airlines, shipping lines, and hauling companies that operate vehicles. Notably, retailers that manage fulfillment in-house will often use a 2PL to deliver products to their final destination. As such, two prominent examples of 2PL providers are UPS and FedEx.
3PL
3PL stands for Third-Party Logistics and is a full-service provider. This logistics provider will handle all aspects of the supply chain, from warehousing to last-mile delivery. Services that a 3PL offers include; receiving, storing, packing, and shipping services. Some 3PLs, like Falcon Fulfillment, offer value-added services like inventory management, kitting and light assembly, and returns management.
According to Armstrong and Associates, 90% of Fortune 500 companies use a 3PL.
4PL
4PL stands for Fourth-Party Logistics and is a strategic partner that helps a business optimize its supply chain. This provider will help a company streamline its processes, reduce costs, and increase efficiency. 4PL providers are integrated into managing multiple aspects of the supply chain. Typically, 4PLs work like consultants who leverage relationships across 1PL, 2PL, and 3PL providers. They rely heavily on technology to optimize the logistics process, allowing them to offer a higher-level analysis of data and reporting. 4PLs provide everything a 3PL does but include project management, logistics negotiations, and strategy.
5PL
Finally, 5PL stands for Fifth-Party Logistics and is a logistics provider that works with multiple 3PLs to manage the entire supply chain. A Fifth-Party Logistics Provider is a consultant one step above a 4PL. 5PLs act as aggregators for 3PLs by bundling the needs of multiple 3PL businesses to get better service rates.
Differences Between Logistic Types: 1PL, 2PL, 3PL, 4PL, and 5PL Pros and Cons

1PL
If you are a small business with limited resources, then 1PL may be your best option. It is a simple system that makes it easy to manage. You have complete control over the logistics process. However, this system becomes limiting as you grow and can throttle business success.
2PL
Leveraging a shipping provider like FedEx, UPS, or USPS can provide a great network to ensure orders are received in a timely fashion. Using a 2PL provider is best for startups and organizations that can easily manage their fulfillment needs with in-house teams. However, one of the downsides to 2PL logistics is that it takes a very high quantity of shipments to earn volume discounts (a common benefit of 3PL partnership). Furthermore, 2PL relationships fail once orders overwhelm the existing team and warehousing space. If you spend more than 20% of your time fulfilling orders, it is probably a good time to outsource your logistics to a 3PL.
3PL
Using a 3PL provider is the sweet spot for many businesses because it allows companies to scale their sales, storage, and shipping efficiencies without adding tremendous overhead costs. When a company outgrows in-house fulfillment the logical next step is to partner with a 3PL. Conversely, if you have been partnering with a single 3PL and plan to launch internationally or would like to explore utilizing multiple 3PL relationships it is time to explore 4PL relationships.
4PL
Working with a 4PL has expansion possibilities beyond that of a single 3PL provider and can replace a logistics manager in-house. In fact, depending on your specific needs and order volume, this will determine if this additional layer of strategy is necessary to scale your business. However, with the additional expertise and data-driven insight comes additional costs as well.
5PL
Finally, working with a 5PL is typically reserved for large multinational retailers who have the order volume and capital to invest in logistics expansion. For most businesses the services provided by a 5PL are simply too expensive for their needs.
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…
It is important to research each type of provider to ensure you are getting a quality service that meets your specific needs. To the end, no matter which type of logistics provider you choose, it is essential to have a good understanding of your business’s requirements and goals and how they are met by what the provider offers. Ultimately, exploring the differences between 1PL, 2PL, 3PL, 4PL, and 5PL providers will help you select the right logistics provider to help your business succeed.
If you would like to learn more about how Falcon Fulfillment can help with your logistics needs, get in touch today.
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Managing Post-Holiday Returns in E-commerce Fulfillment
12 Strategies for Managing the Logistics of Returns After the Holiday Rush
The holiday shopping season always brings a major uptick in sales for e-commerce retailers. However, the other certainty about the holidays is that January inevitably brings a huge wave of product returns. In fact, Optoro estimates a massive $173 billion worth of holiday gifts were returned in 2023 alone!
As an e-commerce merchant, efficiently processing these high return volumes while keeping customers satisfied presents some major logistical and financial challenges. In this post, we’ll explore 12 fulfillment and reverse logistics tips to smooth out the post-holiday returns rush.
Accurately Forecast Return Rates
The first step is understanding your baseline return rates and how they fluctuate during the holiday peak. With this data in hand from past years, you can more precisely predict and plan for the upcoming returns influx. Being proactive also lets you strategically line up additional 3PL warehouse capacity or staffing to handle January order volumes.
Offer Free Returns
Our research shows 51% of customers will refuse to shop with an e-commerce merchant again if return shipping isn’t free. So offering free returns is critical, even though it eats into margins. Consider building estimated returns shipping costs into your base pricing structure to offset this.

Enable Online Return Requests
Allowing customers to instantly request and print return labels online makes processing returns quicker and more efficient for everyone involved. Customers appreciate the self-service convenience too. Integrating your order management system with your 3PL’s WMS platforms enables seamless return merchandise authorizations (RMAs).
Set Realistic Return Window Policies
Prominently display your returns policy and timeframe—whether 30, 60 or 90 days—across your website, especially at checkout. Be upfront so customers clearly understand the constraints before their purchase. However, also consider extending return windows over the holidays when gift-giving is common.
Set Realistic Return Window Policies
Thoroughly examine every return at your inbound processing facilities before reselling, discarding or refunding. This order quality control safeguards against reintroducing damaged inventory back into saleable stock. It also provides valuable product failure data to share with suppliers.

Improve Online Product Listings
For apparel brands, sizing issues are among the top reasons for e-commerce returns. Ensure your product detail pages display accurate garment measurements and size charts. For hard goods, precisely showcase dimensions, materials and colors with consistent, high-quality photography. Reducing disconnects between listings and actual items shipped curtails “not as described” returns.
Consider “Keep it” Discounts
Crunching the numbers may reveal that certain low-cost products are unprofitable to ship back through reverse logistics. One of the newer ways to manage holiday returns is to offer customers instant discounts—say 10-15%—if they simply keep the item instead of returning it. The customer saves on return hassles and you avoid transportation costs for that SKU.
Refine Demand Forecasting Inputs
Every e-commerce operation battles inventory inaccuracies between projected and actual demand. As returns roll in after the holidays, analyze which items are most commonly sent back due to excess stock that didn’t sell. Refine your demand planning models to better realign future purchase orders and safety stock levels with true consumer demand.
Renegotiate Carrier Return Rates
Don’t assume your 3PL’s outbound shipping contracts include the same rates for returns. Reverse logistics often command higher per-package rates. Reconfirm existing contracts or negotiate customized returns rates with your small parcel, LTL and FTL carriers to minimize transportation costs.
Centralize Returns at Regional Hubs
Consolidating returns processing at fewer, strategically located warehouse facilities increases efficiency through higher shipment volumes per inbound route. This lowers per-unit transportation costs considerably. It also lets you specialize staff that gain expertise handling returns at designated sites.
Explore New Resale Channels
Finding secondary markets to profitably liquidate all those returns is crucial. Consider Business to Business (B2B) bulk sales of written-off inventory to discount retailers or liquidators. Or develop new direct-to-consumer online outlets focused exclusively on selling refurbished or open-box items at a discount.
Analyze Root Causes
Finally, categorize and analyze why items were returned after the holidays. Identify products with repeated quality problems for remedial action. Spot trending characteristics of most returned SKUs to guide future product designs, forecasting and stocking decisions before next holiday season rolls around.
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…
Implementing even a handful of these reverse logistics best practices will promote major post-holiday returns process improvements for your organization. Moreover, through elevated customer service levels and supply chain efficiencies, your enterprise can turn this yearly challenge into a competitive advantage. Partnering with an experienced 3PL provider equipped with the transportation, warehouse and staffing assets to flexibly scale is an invaluable asset too.
Let Falcon Fulfillment help you manage holiday returns. We can help you jump this hurdle and maximize your customer satisfaction and retention.
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Omnichannel Fulfillment - What Retailers Need to Know
Omnichannel Fulfillment – What retailers need to know.
As a retailer, staying ahead of the competition is an ongoing battle. Given that, one of the ways to stay ahead is to ensure that you are providing your customers with the best possible shopping experience. Subsequently that’s why omnichannel fulfillment is quickly becoming the go-to solution for many retailers.
Omnichannel fulfillment integrates the delivery of products to customers across various channels, encompassing in-store, online, and mobile app purchases. In light of this unified approach, customers receive a consistent shopping experience regardless of their chosen platform. Consequently, the significance of omnichannel fulfillment for retailers becomes evident. To optimize customer satisfaction, retailers must craft a comprehensive fulfillment strategy tailored to meet diverse shopping preferences. Delving into the intricacies of omnichannel fulfillment unveils crucial insights for retailers aiming to enhance their customers’ shopping journeys.
Know Your Customer

To ensure that you provide the best customer experience, you need to know who your customers are and their needs. This means that you must have a comprehensive understanding of their buying habits and preferences. Hopefully, you already understand who your customers are and what they are looking for, but here are some questions to consider as you build an omnichannel experience.
- Where does the bulk of your sales come from? Online? In-store? Via mobile app?
- What kinds of products are purchased via each channel?
- What are the age(s) and demographic of your primary buyers?
- Where do most of your buyers live?
- What marketing channels are having the most success in conversion and audience engagement?
Integrate Your Channels

To provide a seamless shopping experience, you must ensure that your channels are integrated. With this in mind you must have a unified platform that links all your channels, including your website, store, and mobile app. Key features to include in your omnichannel software programs are:
- A platform that can manage all the business’s channels, including order fulfillment, cross-channel marketing, and additional integrations like a CRM.
- Manage and combine customer-facing commerce channels. This would include all POS systems in-store, online, and via social media.
- Deliver functionality for B2C or B2B omnichannel commerce
- Maintain product availability and data across all channels.
If you work with a 3PL fulfillment partner, it’s crucial to first ensure that their software will integrate seamlessly with your platform. Otherwise, you may face significant challenges in managing your fulfillment process. However, if they, like Falcon Fulfillment, provide API integration tools and additionally offer an account manager to assist with implementation and integration, then you can proceed with confidence knowing that the transition will be smooth and efficient.
Streamline Processes

Because omnichannel fulfillment covers many systems, channels, and customers, creating workflows that cater to an excellent customer experience is crucial. Creating a smooth omnichannel fulfillment experience requires efficient processes. This includes automation and streamlining workflows. Start by reviewing business operations such as marketing and initial point-of-sale.
Utilize Technology

You must utilize the latest technology to ensure that you are providing your customers with the best possible shopping experience. Generally this includes using a customer relationship management (CRM) system to keep track of customer information, analytics to measure performance, and automation to streamline processes. Here are a few specific ways to streamline processes for omnichannel fulfillment:
- Automate Inventory management (more on this below)
- Use automation in managing the sorting, movement, storage, picking, and packing of retail orders for last-mile delivery
- Evaluate pick and pack procedures for inefficiencies
- Implement effective and easier returns management
Optimize Inventory

One of the most important elements of omnichannel fulfillment for retailers is optimizing inventory. You must have an effective inventory management system to provide your customers with the products they want when they want them. This includes having a real-time view of inventory so that you can quickly adjust your stock to meet customer demand. To this end, automation software, streamlined processes, and ensuring all systems integrate with real-time data help optimize the flow of goods in and out. Check out four ways a 3PL can help with outsourcing inventory management.
Beginner’s Guide to Third-Party Logistics (3PL)
The world of e-commerce is constantly evolving, and as such, understanding the role of Third-Party Logistics (3PL) is crucial for keeping up with the latest trends and best practices. In order to facilitate a comprehensive understanding of this critical aspect of e-commerce, this beginner’s guide to third-party logistics (3PL) will delve into the essential aspects of the field. Throughout this guide, we will explore a range of topics, including fulfillment services, warehousing, and much more, thereby providing valuable insights for those seeking to optimize their e-commerce operations.
Read More…
Omnichannel fulfillment is quickly becoming the go-to solution for many retailers. For this reason, understanding the key elements of omnichannel fulfillment and utilizing the right technology and processes, you can ensure that you provide your customers with the best shopping experience. Here at Falcon Fulfillment, we specialize in omnichannel fulfillment. We provide 7-day operations, 99.9% order accuracy, and automated inventory management. We don’t believe in a one-size-fits-all approach but believe that a seamless partnership and integration are essential to success.
If you want to learn more about how Falcon can help with your omnichannel fulfillment process, talk to one of our agents today.
Let’s Talk!