Minimizing Lost and Stolen Packages: Secure Shipping with 3PL
Securing Your Shipping With A 3PL Solution Helps In Minimizing Lost and Stolen Packages.
In the world of e-commerce, the convenience of online shopping is coupled with the challenge of package security. Lost and stolen packages have become a recurring issue for both customers and businesses. Minimizing lost and stolen packages is an important part of fulfillment. Today we delve into effective strategies to minimize incidents while highlighting the advantages of partnering with a 3PL provider to mitigate these issues.
The Growing Concern of Lost and Stolen Packages
Package Security Matters
In an era where online shopping has become the norm, package security is paramount. E-commerce companies invest heavily in ensuring that their products reach customers intact. Unfortunately, the risk of lost or stolen packages is an ever-present concern.
Understanding the Impact
Lost or stolen packages not only result in financial losses but also damage a company’s reputation. Unhappy customers are less likely to return for future purchases. The logistics of tracking and replacing these packages can be a logistical nightmare.
A Solution: 3PL Providers
Falcon Fulfillment, a leading Third-Party Logistics (3PL) provider, understands the importance of secure package delivery. Their expertise in Fulfillment Services, Warehousing and Distribution, and E-commerce Fulfillment ensures a streamlined and secure supply chain.
How 3PL Enhances Package Security and Helps Minimizing Lost and Stolen Packages
Inventory Management
One of the key aspects of minimizing lost packages is efficient Inventory Management. Falcon Fulfillment utilizes state-of-the-art technology to track every item from the warehouse to the customer’s doorstep. This meticulous approach reduces the chances of items going missing and ensures order accuracy.
Shipping and Delivery
3PL providers like Falcon Fulfillment excel in Shipping and Delivery services, ensuring packages are handled with care and delivered promptly. Their focus on Supply Chain Management guarantees secure, on-time delivery. By consolidating shipments and optimizing routes, they minimize the risk of package loss during transit.
Last-Mile Delivery
The “last mile” is often the most vulnerable stage for packages. Falcon Fulfillment specializes in Last-Mile Delivery, optimizing the final leg of the journey and reducing the risk of package loss. Through advanced routing and tracking, they ensure packages reach their destination safely.
Safety and Security Measures in Warehousing
Falcon Fulfillment places a strong emphasis on Safety and Security Measures in Warehousing. Their fulfillment centers are equipped with advanced security systems, safeguarding your products until they reach their destination. This includes 24/7 surveillance, access control, and climate-controlled storage to protect your inventory.
Beyond Secure Shipping: Additional Benefits of 3PL
Apart from minimizing package loss, partnering with a 3PL provider like Falcon Fulfillment offers several other advantages for e-commerce businesses.
Scalable Fulfillment Solutions
3PL providers are equipped to handle the growth of your business. As your e-commerce business expands, Falcon Fulfillment offers Scalable Fulfillment Solutions, ensuring your operations can keep up with increasing demand. This scalability allows you to meet customer demands without compromising on security.
Inventory Tracking Software
Efficient Inventory Tracking Software is vital for the security of your products. Specifically, Falcon Fulfillment utilizes cutting-edge technology to provide real-time insights into your inventory, reducing the risk of discrepancies and losses. Furthermore, with the ability to track stock levels and receive alerts for low inventory, you can maintain control over your products.
Order Fulfillment Metrics and Reporting
Understanding how your orders are processed is essential for maintaining a secure supply chain. Accordingly, Falcon Fulfillment provides detailed Order Fulfillment Metrics and Reporting, giving you full visibility into your operations. Moreover, you can monitor the status of orders, track order accuracy, and identify areas for improvement, ensuring a secure and efficient fulfillment process.
Return Merchandise Authorization (RMA) Processing
Dealing with returns can be a complex process. Nevertheless, Falcon Fulfillment simplifies it with their Return Merchandise Authorization (RMA) Processing, ensuring that returned items are handled efficiently and securely. By streamlining the return process, you can reduce the risk of mishandled or lost return packages.
International Shipping and Import/Export Expertise
If your business operates on a global scale, Falcon Fulfillment’s International Shipping and Import/Export expertise can further enhance package security. They navigate the complexities of international shipping, customs clearance, and import/export regulations to ensure your products reach their destination without issues. Moreover, dealing with returns can be a complex process. However, Falcon Fulfillment simplifies it with their Return Merchandise Authorization (RMA) Processing, ensuring that returned items are handled efficiently and securely. By streamlining the return process, you can reduce the risk of mishandled or lost return packages.
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…
Minimizing lost and stolen packages is essential to the success and reputation of your business.
Falcon Fulfillment, with its expertise in 3PL services, offers comprehensive solutions for secure package delivery. From Inventory Management to Last-Mile Delivery, their services ensure your customers receive their orders intact and on time.
Partnering with Falcon Fulfillment not only enhances package security but also brings additional benefits like Scalable Fulfillment Solutions, Inventory Tracking Software, Order Fulfillment Metrics, efficient Return Merchandise Authorization Processing, and International Shipping and Import/Export expertise. These advantages make Falcon Fulfillment a reliable choice for e-commerce businesses looking to secure their supply chain and provide customers with a seamless shopping experience.
Investing in secure package delivery through a 3PL provider like Falcon Fulfillment is an investment in the future of your e-commerce business. So say goodbye to the worry of lost and stolen packages and hello to satisfied and loyal customers!
Let’s Talk!
Demand Forecasting in E-commerce
Everything You Need to Know About Demand Forecasting in E-commerce
Achieving seamless inventory management can feel like a mystical endeavor. Fortunately, you don’t need a crystal ball or a magical wand to master this craft. Instead, what you need is demand forecasting in e-commerce. In this comprehensive guide, we’ll delve into the intricacies of demand forecasting, exploring why it’s a crucial aspect of e-commerce success. Moreover, we’ll provide you with practical insights on how to implement it effectively within your organization. By the end of this guide, you’ll have a solid understanding of the power of demand forecasting and the tools necessary to harness its potential for your e-commerce business.
What is Demand Forecasting in E-commerce?
Demand forecasting in e-commerce is the art of using data to predict customer demand, thereby guiding pivotal decisions for your business. In essence, it’s like maintaining the delicate balance of an online store’s ecosystem. If you produce too much, you risk overstocking, which can lead to unnecessary costs and waste. On the other hand, if you produce too little, you’re faced with stockouts, resulting in lost sales and disappointed customers. To prevent these undesirable scenarios, you must turn to demand forecasting. By harnessing the power of data and employing the right techniques, you can navigate the complexities of inventory management and make informed decisions that drive your e-commerce success.
Why You Need Demand Forecasting
Demand forecasting offers an array of benefits for your e-commerce business. It helps you:
Optimize Inventory: Ensure you stock the right amount of products, avoiding excess or shortages.
Align with Operational Strategy: Make informed decisions for your business’s growth and efficiency.
Analyze Trends: Study demographic and product trends to stay ahead of the game.
Surprise and Delight: Exceed customer expectations with accurate product availability.
Risk Mitigation: Protect your business from financial uncertainties.
Peak Season Preparation: Get ready for the highs and lows of your industry.
Let’s explore the fundamentals of setting up a demand forecasting plan tailored to your e-commerce growth.
Guiding Questions for Demand Forecasting
Before diving into the techniques and methods, consider these key questions:
- What are your order patterns daily, monthly, and yearly?
- Have you noticed any fluctuations corresponding to specific time periods?
- Which products are your best-sellers, and which are slower-moving?
- How frequently does inventory need replenishing?
- What are your logistics costs compared to the Average Order Value (AOV)?
- Where are your customers located, and is your fulfillment center strategically positioned?
- Do you expect these projections to evolve over time?
These answers will be your compass as you embark on your demand forecasting journey.
Getting Started with Demand Forecasting Techniques
Demand forecasting, like a variety of ice cream flavors, offers several approaches to cater to your specific needs. Let’s explore the six types and methods.
6 Types of Demand Forecasting
- Passive Demand Forecasting: Uses historical sales data to predict future sales, although it assumes sales will remain the same year-over-year, which can be too simplistic for most e-commerce businesses.
- Active Demand Forecasting: Utilizes market research and external factors to provide a more comprehensive picture of future sales.
- Micro Demand Forecasting: Focuses on specific industries, businesses, or customer segments for in-depth analysis.
- Macro Demand Forecasting: Assesses global market shifts and economic conditions that could affect demand.
- Short-Term Demand Forecasting: Predicts for twelve months or less.
- Long-Term Demand Forecasting: Forecasts beyond one year.
6 Methods of Demand Forecasting
- Market Research: Gathers customer data through surveys, offering insights into your target audience.
- A/B Testing: Experiments with pricing, design, and product offerings to refine the customer experience.
- The Delphi Technique: Gathers expert opinions anonymously to form a market consensus.
- Sales Force Composite: Utilizes feedback from your sales team to identify trends and patterns.
- Barometrics: Relies on leading, lagging, and coincidental indicators to predict future trends.
- Econometrics: Involves complex mathematical formulas combining internal data and external influences.
For the best results, it’s crucial to combine different demand forecasting techniques. By doing so, you can create a personalized and scalable solution that caters to your unique business needs. Now that you understand the importance of demand forecasting, it’s time to take action. Start by assessing your data to gain valuable insights into your business operations. Then, use this information to kickstart your demand forecasting game plan. By implementing a well-crafted strategy, you’ll be well on your way to optimizing your inventory, improving customer satisfaction, and ultimately driving long-term success for your e-commerce venture.
Forecasting Your Next Move
Smooth sailing in e-commerce hinges on an effective demand forecasting strategy, especially during peak seasons. To achieve this, consider partnering with a tech-forward 3PL like Falcon Fulfillment. Our cutting-edge technology ensures fast and reliable order fulfillment, even during busy times, thanks to features like Spike Protection.
Spike Protection aligns warehousing labor with your business’s daily volume, preventing inventory overflow and backlogging. With Falcon Fulfillment, you can rest assured that your orders will be processed seamlessly, even during peak periods.
As the holiday season approaches, demand forecasting becomes more critical than ever. To get ahead, start by implementing a demand forecasting strategy now. Don’t wait any longer; it’s time to take your e-commerce business to the next level. In addition, reach out to Falcon Fulfillment today for a demo of our comprehensive 3PL e-commerce fulfillment platform. By partnering with us, you’ll discover how we can help your business Stress Less and Grow More. Furthermore, our expert team is ready to provide you with the tools, insights, and support you need to optimize your inventory management and achieve long-term success. Ultimately, take the first step towards a more efficient and profitable future by contacting Falcon Fulfillment now.
The Importance of Accurate Demand Forecasting
Accurate demand forecasting is the linchpin of e-commerce success. It not only ensures you have the right products in stock but also allows you to fine-tune your operations and exceed customer expectations. By understanding your customer’s preferences and predicting their needs, you gain a competitive edge in the fast-paced e-commerce world.
Key Considerations for Long-Term Success
When diving into the world of demand forecasting, it’s important to consider both short-term and long-term strategies. Short-term forecasting helps you manage immediate inventory needs, while long-term forecasting allows you to plan for growth and market shifts. Combining these approaches gives you a holistic view of your business’s trajectory.
Leveraging Data and Technology
In the age of digital commerce, data is king. Advanced software and tools, such as cloud-based Warehouse Management Systems (WMS), play a pivotal role in streamlining the demand forecasting process. These systems collect and analyze data from various sources, offering real-time insights and predictive analytics. By harnessing the power of technology, you can make data-driven decisions that enhance your e-commerce operations.
The Role of 3PL in Demand Forecasting
3PL providers, like Falcon Fulfillment, are integral to the demand forecasting process. They offer services such as warehousing, inventory management, and shipping solutions, all of which are closely tied to accurate forecasting. By collaborating with a 3PL partner, you can access their expertise and resources to optimize your supply chain.
Preparing for the Holiday Season
The holiday season is a pivotal time for e-commerce businesses. Accurate demand forecasting is your best friend during this period. It ensures you have the right products on hand to meet the surge in customer demand, minimizing the risk of stockouts. With the support of a 3PL partner like Falcon Fulfillment, you can navigate the holiday rush with ease and keep your customers satisfied.
Beginner’s Guide to Third-Party Logistics (3PL)
The world of e-commerce is always changing, so understanding the role 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…
Demand forecasting is not just a tool; instead, it’s the cornerstone of e-commerce success. By utilizing demand forecasting, you are empowered to make informed decisions, optimize your inventory, and stay ahead of market trends. To achieve accurate forecasting, combining various techniques and methods is essential. Additionally, harnessing data and technology plays a crucial role in the process. Furthermore, collaborating with a 3PL partner can provide valuable insights and support. By implementing these strategies, you can effectively position your e-commerce business for growth and long-term success in an increasingly competitive market.
Demand forecasting in e-commerce is your compass to navigate the turbulent seas of e-commerce, ensuring your business’s success and customer satisfaction.
Want to work with a partner that can help you navigate demand forecasting and take your business further?
Let’s Talk!
6 Strategies to Improve E-commerce Customer Service
Strategies to Improve E-commerce Customer Service
It’s no secret that customer service is a key element to the success of any e-commerce business. After all, customers are the lifeblood of any business, and if they’re not happy, they’re likely to go elsewhere. That’s why it’s important to employ tactics to help you provide the best experience possible for your customers. E-commerce customer service assists customers with everything from purchases to returns and is a prerequisite for success. According to data from Microsoft, 95% of consumers, customer service is vital for brand loyalty. Here are 6 strategies to improve e-commerce customer service:
Provide multiple ways to contact customer service
Make it easy for customers to reach out. Provide customers multiple ways to contact you, including email, phone, social media, and live chat. This will make it easier for them to get in touch with you and get their questions answered quickly. There is nothing more frustrating than having to search for a company’s customer service contact details. If a customer cannot quickly find assistance, they will be upset before you try to solve the issue. However, it builds brand trust when help is straightforward and easy to find.
Create a robust self-serve option
The most significant benefit of developing a robust self-serve option is speed. Customers don’t want to have to wait … ever. A few ways to offer self-serve customer service is to create a FAQ page highlighting the most common issues. This saves your company time and money and makes the customer experience more efficient. In addition to an FAQ page, include screenshots and videos when possible. Create a searchable knowledge base or consider opening a community discussion forum. These can become a treasure trove of feedback that should be considered to improve the customer experience.
Offer personalized customer service.
Customers appreciate it when they feel they’re being treated as individuals rather than just another number. Take the time to get to know your customers and provide them personalized service. According to Accenture, approximately 33% of consumers have abandoned relationships with a brand because of a lack of personalization. Take the time to understand the customer’s question, goal, or problem. Once there is a clear understanding of the issue, it becomes easier to provide a personalized solution.
Improve response times
Customers expect a timely response to their inquiries, so ensure you respond promptly. E-commerce is built on speed and convenience, which is why customers shop online. Improving response times to a customer request will dramatically increase their trust and loyalty to your brand. A few ways to improve response times include; implementing customer service software, using automation like chatbots for common issues, sending time-based email alerts, and prioritizing service requests.
Leverage customer feedback.
It’s no secret that you will have to disappoint a customer now and then. Therefore it is crucial to ask your customers to provide feedback on their experiences with your business. All in all this will help you to identify areas where you can improve your customer service and ensure that you’re providing the best experience possible.
Improve customer service training and escalation procedures
Improving the e-commerce customer service experience starts with a well-trained team of support agents. Training customer service personnel on how to resolve common customer issues and when to escalate a case to their upline is vital. If support teams are escalating every case because they are not informed or equipped, customers will suffer, and ultimately so will your business.
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…
By following these six strategies, you can help to improve the customer service you provide to your e-commerce customers. When customers are prioritized and offered a personalized experience, retention increases. This will result in happier customers, more repeat business, and higher profits. Furthermore, it can help build referrals which translates to more sales. No matter what your business goals are, customer service will play a crucial role in long-term success. At Falcon Fulfillment, we can help our clients with all aspects of fulfillment customer service, including returns and restocking.
Get in touch with one of our agents today to learn more about our strategies to improve your e-commerce customer service.
Let’s Talk!
Canada Post Strike: Impact on Shipments
The ongoing Canada Post strike has left businesses and consumers grappling with significant disruptions in mail and parcel delivery across the nation. As the Canadian Union of Postal Workers (CUPW) continues its national strike, the ripple effects are being felt across various sectors, particularly e-commerce and retail. With no immediate resolution in sight, understanding the implications and finding alternative fulfillment services is crucial for maintaining business operations.
The Scale of the Disruption
Since the strike began on November 15, 2024, Canada Post operations have come to a standstill. Mail and parcels are neither being processed nor delivered, leaving millions of items in limbo. Adding to the challenge, some post offices have closed their doors entirely, and service guarantees have been suspended. Even after the strike ends, experts predict a protracted period before normal operations resume, due to backlogged shipments and logistical complexities.
This disruption is not limited to Canada alone. The United States Postal Service (USPS) has suspended all shipments to Canada, further straining international supply chains. Consequently, businesses relying on Canada Post for fulfillment services or cross-border shipping must adapt quickly to avoid long-term customer dissatisfaction.
Industries Hit the Hardest
The Canada Post strike has significantly impacted e-commerce fulfillment, as businesses scramble to meet customer expectations. Retailers reliant on last-mile delivery have faced mounting complaints, lost sales, and damaged reputations. Warehousing and distribution centers are under pressure as inventory management becomes increasingly difficult. For small and medium-sized enterprises, the lack of affordable and reliable shipping and delivery options has proven especially challenging.
Beyond retail, industries dependent on supply chain management, such as healthcare and manufacturing, are also feeling the strain. Bulk shipping, freight forwarding, and international shipping services face increased costs and delays, further complicating operations.
Alternative Solutions
In response to the strike, businesses are exploring third-party logistics (3PL) providers to maintain continuity. Companies like Falcon Fulfillment offer scalable fulfillment solutions that include warehousing and distribution, kitting and assembly, and cross-docking services. By leveraging value-added services (VAS) such as inventory tracking software and transportation management systems (TMS), businesses can navigate these turbulent times with minimal disruption.
Some organizations have turned to non-postal Delivered Duties Paid (DDP) services for cross-border shipments. This approach ensures that duties and taxes are pre-assessed, simplifying customs clearance and enabling faster delivery. For businesses with high shipping volumes, freight consolidation and packaging optimization have emerged as effective strategies to reduce costs and improve efficiency.
Leveraging Technology During the Strike
Technology has played a pivotal role in mitigating the impact of the Canada Post strike. Cloud-based warehouse management systems (WMS) and 3PL technology solutions offer real-time order tracking and management capabilities. These systems enhance order accuracy and quality control, ensuring customers receive their shipments without unnecessary delays.
Furthermore, e-commerce integration services streamline multi-channel fulfillment, allowing businesses to adapt to alternative carriers seamlessly. For example, using carrier selection and management tools, companies can switch to same-day and next-day delivery providers where available, safeguarding customer satisfaction.
Planning Ahead: Lessons from the Strike
The Canada Post strike underscores the importance of proactive supply chain optimization. Businesses should consider diversifying their shipping partners and investing in robust reverse logistics systems to handle returns efficiently. Vendor-managed inventory (VMI) and demand planning are also critical for maintaining stock levels during prolonged disruptions.
Additionally, adopting scalable fulfillment solutions allows businesses to adjust quickly to changing market conditions. Safety and security measures in warehousing, combined with frequent inventory cycle counts, further minimize risks associated with unforeseen delays.
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…
During times of uncertainty, partnering with a trusted fulfillment center like Falcon Fulfillment can make all the difference. With expertise in e-commerce fulfillment and advanced inventory management systems, Falcon Fulfillment ensures on-time delivery, even amid industry-wide challenges. By offering tailored order fulfillment solutions and real-time order tracking, Falcon helps businesses maintain customer trust and loyalty.
Reach out today to explore how we can help you navigate these challenges and keep your business moving forward.
Let’s Talk!
Holiday Backorders: How to Keep Your Customers Happy
What is Backordering?
The term “back-ordering” is defined as allowing a customer to purchase an item that is not currently in stock. Initially, you might wonder: “why offer a product without having it physically available to sell?”. In a nutshell, customers do not respond well when an item is unavailable or out of stock. They will often search for your competitors and buy something there instead. Customers usually don’t like extended wait times associated with back-ordered items. So, what can you do? You must consider the advantages and disadvantages that come with each option. It’s possible that some of them aren’t right for your business. Let’s see how they compare.
Pros and Cons of Holiday Backorders
Pros
Higher Customer Retention
Giving customers the chance to backorder an item from your brand gives them a second chance to buy it from you.
For brands that label their items as “out of stock”, that desire to purchase an item does not go away. Instead, determined buyers will look to alternative brands in search of the product your store ran out of.
Putting items on backorder makes it more likely that customers will keep buying from your business, even if they have to wait for a long time.
“Attracting a new customer is 6-7 times more expensive than retaining a current one.”
Accurate Order Expectations
Additionally, backorder alternatives also provide your company with more accurate order predictions for the next year. How so? Well, by letting buyers purchase items that are not in stock, you can analyze how many orders you can expect to get next year.
This will help you with projecting how much inventory you’ll need to avoid backorders and keep selling with regular wait times.
Cons
Pressure on Customer Support
Utilizing backorder options doesn’t come without its setbacks.
Despite offering higher customer retention, your customer service team will be met with elevated concerns and overall stress due to backorder-related support tickets.
Why? Although customers voluntarily choose to wait longer in exchange for popular items, some don’t expect the long wait, some customers forget, others change their minds, and some simply find what they want in stock at a different store. This results in a higher volume of customer service inquiries.
TIP: When offering a backorder option over-prepare your customers and service team with extra support, clear information, a detailed FAQ, and easily accessible contact information.
More Cancelled Orders
Backorder options motivate customers to make purchases through your company, however, it doesn’t guarantee that your buyers won’t lose interest, find something else, or cancel their order for various reasons.
Backorder options provide you with the chance to sell your items before they ever arrive at your inventory facility. In exchange, this comes with extended wait times for your customers.
When customers can’t find the item anywhere else, buying it on backorder may seem like a good idea. But when the item is available in other stores or a buyer decides the long wait time isn’t worth it, you might get more cancelation and refund requests than expected.
“FCB&Co research indicates that 90% of cancelled orders are due to backorders.”
How to Keep Your Backorder Customers Happy
If a holiday backorder option is right for you and your company, let Falcon Fulfillment be your guide through the process of preparing your facility and successfully managing your upcoming backorders.
To keep things simple break down the information that follows into two groups: inventory and customer service. These are the two leading factors that determine the success of back ordering.
Inventory
When there is too much inventory, delayed products, and a backlog of orders, inventory management is the most important thing to think about. A flawless backorder procedure begins with your very own inventory facility.
Create a Physical Space for Your Holiday Backorders
Designating a physical space for your holiday backorders is the first step to success.
Even if the area is empty throughout your peak season or back order high time, it’s nonnegotiable to have the available space for potential backorders at all times.
Keeping things organized using a designated backorder area will allow staff to quickly access items when they arrive at your inventory and immediately begin shipping out to long-awaiting customers.
TIP: Customers who are on backorder agree to a long wait, but you only have so long before they get impatient or find the same item at a store somewhere else. When inventory finally arrives make sure to get orders out as quickly as possible in order to retain buyers. Ecommerce companies usually use 3PLs because of this. If the order fulfillment process is taking too long, you should look for a better 3PL provider.
Prepare and Train Your Team
Make sure your staff is prepared to handle holiday backorders. When you use a backorder strategy for your business, you need to make sure that current or seasonal employees get in-depth training on how to handle backorder fulfillment.
You’re going to lose a lot of customers if your employees don’t know what they should be doing and when they should be doing it.
Things must be properly tracked, managed, and overseen by a specific team with backorders as their highest priority in order for a backorder option to be successful for your company.
Inventory Reorder Notifications
A sure-fire way to have a successful holiday backorders strategy is by never running out of inventory.
This usually isn’t possible, and with the rise of online shopping, it’s even less likely to hold a full stock. However, with re-order notifications you have a better chance of keeping things in stock and available to sell, avoiding the need for backorders and extended wait times altogether.
Re-order notifications can be set up between the manufacturer and inventory facility (whether private or with a 3PL). Once inventory reaches a certain amount, your systems will notify your manufacturer and set the delivery date for more products.
This will allow you to keep fulfilling without the setbacks of backorders and help your brand retain the reputation of being fast, reliable, and dependable for your customers.
Back in Stock Email Notifications
If holiday backorders are not something you’d like to use or continue using, there is one trick you can use.
One way to avoid backorders is to let items go “out of stock” on your website. A common way to let customers know when an item is back in stock is to give them the option to send them an email notification when it is available again.
Customers who get an email telling them that an item is back in stock are more likely to buy than people who just browse your site.
Not only does this capture their email but it gives you the chance to send discounts and recommendations based on their notification preferences.
Customer Service For Holiday Backorders
Most ecommerce brands know all too well that backorders mean more customer service tickets.
This is because once you begin offering backorder options you also open the door to additional wait times, complications, and customer concerns. Some tend to ask: “is it worth it?”
Depending on your potential profit for offering backorders on items or exclusive product launches, yes, it can be worth it. In addition to preparing your physical inventory, you must also prepare your customer service line.
Communication
When it comes to keeping your backorder customers satisfied during peak season, communication (and a lot of it) is essential.
Providing precise updates, clear information, and regular contact is one of the easiest ways to keep your customers happy (even if the wait time is greater than normal).
Your buyer will feel cared for and far more committed to their backorder purchase if you keep them in the loop and reassure them along the way. Like BMW’s old “watch your custom car be born” campaign.
TIP: Sending customers emails, text messages, videos, or even short letters will help keep them informed and committed to their buying journey with your brand.
Keep Staff Up to Date on Inventory
In the event that a client calls in to inquire about the status of an item on backorder, it’s usually better if your staff members are aware that the item has been delayed for an additional two days owing to manufacturing difficulties.
If you do not communicate new and updated information to your employees on a regular basis, you run the danger of supplying customers with incorrect information and losing them as a buyer.
Inventory is constantly fluctuating, make certain that your customer service team is kept up to speed on any new inventory information on a continuous basis.
Create a Backup Plan
It’s essential to have a backup plan in case of extended wait times, worried consumers, or cancellations.
If you want to remedy long wait times or simply keep your backorder customers happy, surprise them with personalized notes, samples, or even a free product. This will keep them patient and satisfied with your brand.
Offering personable items allows your customer to feel cared for and shows that they are not forgotten about. This will increase customer satisfaction, loyalty, and even motivate customers to make more purchases.
Be Nice and Have Patience
Every holiday season e-commerce businesses deal with a rise in frustrated customers and increased complaint tickets.
Adding holiday backorder options for buyers only aggravates this number and creates a bigger need for staff with de-escalation training. Because of this retaining a calm and welcoming demeanor will do more for your customer service team than you’d expect.
Most customers calling to resolve their problems are often upset. The majority of the time buyers need someone to genuinely listen to their concerns and guide them through the process of a solution.
Prepare your staff with appropriate training in order to handle potentially difficult 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…
Find the Solution or Rectify the Problem
Keep in mind that finding a solution is just as important as being patient and kind to customers. Although most people want someone to listen to their concerns, buyers are ultimately looking for their concerns to be rectified as soon as possible. This means that your customer service team should be trained not only to be empathetic but also to find a solution that customers will be happy with.
At the end of the day, offering holiday backorders options to your customer can be tricky. That’s why we’ve outlined everything we know to provide you with the necessary information you need to reach backorder success.
Let’s Talk!
The Cheapest Ways to Reduce E-commerce Emissions
Cheap Ways to Reduce E-commerce Emissions
The global movement toward sustainability requires greener solutions for e-commerce and online shopping. Today we’ll be covering the cheapest and easiest ways to reduce e-commerce emissions. Companies benefit from sustainability in a variety of ways, including improved reputation, climate change preparation, staying competitive, and appealing to consumer standards and expectations.
Cheapest Ways to Reduce E-commerce Emissions
Use Greener and Carbon Neutral Delivery Options
BOPIS
Buy-online pick-up in-store options continue to be a popular choice for online shoppers. By allowing orders to be picked up at a real storefront, e-commerce companies help reduce vehicular emissions associated with individual orders.
Use Multiple Fulfillment Center Locations
Having multiple fulfillment locations allows purchases to reach customers quicker, regardless of geographic location. Furthermore, when your e-commerce platform utilizes multiple distribution centers, pick-up options become more convenient for customers.
Pick-up Points
Pick-up locations range from storefronts and public parcel lockers to collaborating partners like your local grocery store. These alternative options allow customers to choose locations that best meet their needs while also minimizing their dependence on commercial product delivery. Additionally, shoppers could pick up their package hours, if not days earlier when bypassing the delivery process.
Sustainable Carrier Programs
UPS and FedEx are now offering low-emission delivery vehicles, bicycle deliveries, and other carbon offsetting and GHG-reduction measures. By partnering with environmentally friendly carriers, you can develop an eco-friendly reputation for your e-commerce company while also lowering emissions.
Purchase Carbon Offsets
Carbon offsets present a viable strategy for mitigating greenhouse gas emissions stemming from automobiles or any other form of pollution. Achieving carbon neutrality entails estimating the annual CO2 emissions of your company and acquiring carbon offsets accordingly. These measures enable your company to diminish its carbon footprint without necessitating significant alterations to its operations or infrastructure.
Use this free calculator to estimate your company’s CO2 impact. Read the results to determine what carbon offsets to purchase.
Switch to Sustainable Packaging
Reduce Unnecessary Packaging
Proper packing is essential for minimizing package and material waste. By selecting the appropriate box size for specific products, you can avoid wasting space and the need for unnecessary package filler. With less space for movement, things are less likely to be damaged without the use of excess material.
Use Eco-friendly Materials
Investing in recyclable materials allows your e-commerce to have a positive environmental impact even after orders have been fulfilled. Customers can support the environment by discarding fewer packaging materials and following the recycling instructions your company provides.
Integrating reusable functions into your packaging saves waste while also providing your consumers with new opportunities to experience your brand.
Consider the following reusable packaging ideas:
- Packaging that can be re-purposed into product holders.
- Shipping boxes that can be re-purposed into a cardboard castle for cats.
- Packaging that can be re-purposed as hangers or for product organization.
Making your packaging biodegradable is another option. You won’t have to depend on your consumer to recycle or reuse whatever material does make it to them. When properly submitted to an industrial site, shoppers may dispose of packaging, and waste will decompose in less than 180 days.
Reduce Your Returns
When it comes to minimizing total returns, making your return policy visible and easy to read for consumers is vital. Before completing a purchase and blindly returning products, aid your consumers in locating, reading, and understanding your return policy. Include important details such as return shipping and restocking costs (if applicable), as well as the acceptable return conditions.
Moreover, promoting exchanges over returns can assist in lowering both overall return rates and carbon impact. Making exchanges a preferred option guides shoppers to a more environmentally responsible solution while still providing them the ability to choose.
Learn more tips and tricks about avoiding returns altogether.
Reduce E-Waste
As an e-commerce business, developing a comprehensive strategy to minimize your environmental footprint is imperative. A proactive approach involves responsibly recycling electronics, spanning from in-house tech equipment to industrial batteries. This can be achieved through collaboration with electronic recycling programs or active participation in initiatives like the Sustainable Materials Management (SMM) Electronics Challenge.
Opting to reduce your e-commerce emissions doesn’t necessarily entail high costs. E-commerce enterprises can effectively mitigate their environmental footprint without breaking the bank through strategies such as embracing alternative delivery options, adopting sustainable packaging practices, and minimizing the use of unnecessary materials and e-waste.
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…
Reduce your carbon footprint, appeal to emerging eco-trends, and show the world how much you care about the environment by consistently providing a green experience with the help of Falcon Fulfillment.
Go Green with Falcon!
Let’s Talk!
Embracing the Future: Trends and Insights in DTC Fulfillment
Embracing the Future: Trends and Insights in DTC Fulfillment for 2024
Hey there, folks! Gabino Chacon here, the senior Sales Executive at Falcon Fulfilment and today we’re diving into the exciting world of Direct-to-Consumer (DTC) fulfillment in the evolving e-commerce landscape. Buckle up and get ready to explore the future trends and insights that will shape DTC fulfillment in 2024. And guess what? Falcon Fulfillment is right there on the front lines, embracing these trends to revolutionize the experience for our partners.
I. The State of DTC Fulfillment
A. Impact of the rise of DTC fulfillment services in recent years
Let’s face it, the rise of DTC fulfillment services has been a game-changer in the e-commerce world. It’s like discovering a hidden talent and realizing you’ve got something special to offer. DTC fulfillment allows businesses to cut out the middleman and connect directly with their customers, delivering a more personalized experience and increasing those profit margins. It’s about taking control and unleashing your true potential.
B. Changes in the DTC fulfillment landscape and customer expectations
But hey, with great power comes great responsibility, and customer expectations are soaring higher than ever before. In the age of instant gratification, they, and I’m they, want it all: faster delivery, seamless experiences, and transparency throughout the fulfillment process. That’s where Falcon Fulfillment steps in, ready to meet those sky-high expectations and exceed them.
II. Trend 1: DTC Fulfillment Continues to Gain Popularity
A. Adoption of hybrid warehouse models to serve B2B and DTC clients
We’re witnessing a fascinating trend, my friends. Businesses are adopting hybrid warehouse models, serving both B2B and DTC clients with flair. It’s like being a master of disguise, seamlessly juggling different roles. Falcon Fulfillment understands this game and is right there on the cutting edge, optimizing inventory management and fulfillment processes to deliver timely results for both wholesale and direct customers.
B. Increasing need for third-party logistics (3PL) providers in DTC fulfillment
In the ever-evolving world of DTC fulfillment, the need for third-party logistics (3PL) providers is on the rise. These heroes of your porch deliveries, offer specialized expertise, scalable infrastructure, and advanced technologies to navigate the intricacies of DTC fulfillment. Falcon Fulfillment is proud to be your go-to partner, helping you focus on what you do best while we handle the seamless order fulfillment and ensure those customers walk away with a smile.
III. Trend 2: Warehouse Management Systems (WMS)
A. Role of WMS in optimizing warehouse operations and reducing complexity
Warehouse Management Systems (WMS) are like magic wands, optimizing warehouse operations and reducing complexity. Falcon Fulfillment knows the importance of these tools and how they can work wonders. With our cutting-edge WMS solutions, we streamline operations, improve inventory accuracy, and make sure everything is as smooth as a well-rehearsed dance routine.
B. Benefits of cloud-based WMS for real-time visibility and streamlining processes
Ah, the cloud! It’s like floating on a fluffy cloud of possibilities. Cloud-based WMS solutions offer real-time visibility, streamlining processes, and giving you the power to make data-driven decisions. Falcon Fulfillment’s cloud-based WMS ensures that you have your finger on the pulse of your fulfillment operations 24/7, integrating seamlessly with other systems and scaling effortlessly to meet the demands of your growing business.
IV. Trend 3: Addressing Labor Shortages
A. Impact of labor shortages in the supply chain industry
Labor shortages? They’re like having half the cast missing on opening night. The supply chain industry is grappling with this challenge. Falcon Fulfillment recognizes the importance of a talented and motivated workforce. That’s why we prioritize attracting and retaining top talent, creating an environment that nurtures growth, and keeps the fulfillment show running smoothly. This is especially important to address volume spikes, maintain our culture, and keep the vision of Falcon moving in a positive direction.
B. Strategies for attracting and retaining employees in DTC fulfillment
To win the talent game, businesses must be creative and offer enticing strategies to attract and retain employees in DTC fulfillment. Falcon Fulfillment goes above and beyond, offering competitive compensation packages, comprehensive training programs, and a workplace culture that feels like family. We’re all about creating an environment where people can shine, ensuring that the fulfillment experience is a win-win for our partners and our amazing team.
V. Trend 4: Smarter Fulfillment Approaches
A. Embracing automation and algorithms to meet the demands of DTC fulfillment
Automation and algorithms? They’re like having an army of highly skilled assistants, ready to tackle the demands of DTC fulfillment. Falcon Fulfillment harnesses the power of automation and algorithms, ensuring lightning-fast order processing, accurate inventory management, and optimized fulfillment from start to finish. It’s like having a well-choreographed dance routine on stage, where every move is perfectly synchronized.
B. Importance of distributed fulfillment and adapting systems for DTC needs
In the world of DTC fulfillment, distributed fulfillment networks are like having strategically placed satellites, reaching customers with lightning speed. Falcon Fulfillment understands this importance and adapts systems to meet DTC needs. We ensure your products are stocked in the right places, minimizing shipping times, reducing costs, and maximizing customer satisfaction. It’s all about making those customers say, “Wow, that was fast!”
VI. Trend 5: Leveraging Data and Analytics in DTC Fulfillment
A. Importance of data visibility and analytics in DTC fulfillment operations
Data visibility and analytics are like having X-ray vision, allowing you to see through the complexities of DTC fulfillment operations. Falcon Fulfillment knows the power of data and how it fuels success. By capturing and analyzing data, we uncover valuable insights, optimize workflows, and make informed decisions that drive efficiency and elevate the customer experience.
B. Optimizing workflows, inventory management, and customer experience with data-driven insights
Data-driven insights are like having the ultimate playbook, optimizing workflows, inventory management, and the customer experience in DTC fulfillment. Falcon Fulfillment’s analytics-driven approach helps us identify opportunities for improvement, prevent stockouts, and deliver a seamless end-to-end fulfillment experience. It’s all about those satisfied customers who keep coming back for an encore.
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 future of DTC fulfillment in 2024 is brimming with exciting trends and insights. Here at Falcon Fulfillment we take these trends to heart, embracing technology, automation, and data-driven strategies to ensure our partners thrive in the DTC landscape. From adopting hybrid warehouse models to leveraging advanced WMS solutions, addressing labor shortages, and optimizing fulfillment approaches, Falcon Fulfillment is here to make your fulfillment experience shine like a blockbuster hit.
So let’s step into the spotlight together, analyze your current process, and continue to make 2024 a year of fulfillment success!
Protecting Against Porch Pirates
Protecting Against Porch Pirates: Falcon Fulfillment and the Power of UPS Capital Insurance
Hello from Falcon Fulfillment! As a trusted 3PL (Third-Party Logistics) provider, we understand the challenges faced by both sellers and buyers during delivery. Protecting against porch pirates is one of the most concerning issues in recent years, and it’s on the rise. At Falcon Fulfillment, we prioritize the safety and satisfaction of our customers; therefore, we are addressing this topic head-on. We will delve into the menace of porch pirates, how they operate, and how we can provide a defense against this threat.
The Porch Pirate Predicament
Porch piracy, a growing concern in the e-commerce landscape, has given rise to challenges in ensuring the secure delivery of packages. Furthermore, as packages pile up on doorsteps across the nation, opportunistic thieves take advantage of this abundance, preying on unguarded parcels. At Falcon Fulfillment, we recognize that this issue affects not just the recipients who lose their goods but also the sellers who wish to protect their customers’ valuable purchases.
Porch Pirates’ Tactics
Porch pirates are evolving their approach, employing various tactics to target vulnerable shipments:
1. Opportunistic Scouting: These thieves may monitor neighborhoods, identifying patterns of package deliveries to strike when homeowners are away or less likely to be vigilant.
2. Tracking Delivery Trucks: Some porch pirates shadow delivery trucks, meanwhile waiting for the perfect moment to swoop in and snatch unattended packages.
3. Deceptive Impersonation: In some cases, these criminals go the extra mile, impersonating delivery drivers or representatives to deceive trusting neighbors into handing over their packages unknowingly.
The Falcon Fulfillment and UPS Capital Insurance Solution
As a dedicated 3PL partner, Falcon Fulfillment takes package security seriously. Moreover, to counter the porch pirate menace, we have joined forces with UPS Capital Insurance to offer a robust defense for your shipments.
1. Comprehensive Coverage: UPS Capital Insurance extends comprehensive coverage that safeguards your shipments from the moment they leave the warehouse until they safely reach their intended destination. Importantly, this includes robust protection against the unfortunate event of porch piracy.
2. Piece of Mind: Furthermore, by having UPS Capital Insurance as a part of our logistics solution, you can rest easy, assured that your customers’ orders are protected throughout the entire delivery process. Additionally, UPS Capital Insurance allows you to safeguard your business, thus providing peace of mind that shipments are secured. Ultimately, with UPS Capital coverage, you can relax knowing that goods are shielded from loss or damage. Consequently, this peace of mind allows you to focus on growing your business and delighting your clientele.
3. Secure Delivery Protocols: At Falcon Fulfillment and with UPS Capital Insurance, we prioritize secure delivery options. Specifically, by requiring signatures for deliveries, we ensure that packages end up in the right hands.
4. Trust and Reliability: By emphasizing the use of UPS Capital Insurance in your shipping process, it underscores your commitment to customer satisfaction and reinforces trust in your brand. Consequently, this trust translates into loyal customers who consistently return for repeat business.
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 Falcon Fulfillment and UPS Capital Insurance by your side, you can confidently ship your products, knowing they are in safe hands. Our shared commitment to security and customer satisfaction ensures that your packages reach their intended recipients, free from the clutches of porch pirates. Experience the peace of mind that comes from a partnership built on trust and reliability. Choose Falcon Fulfillment for your logistics needs, and let’s create a safer and more secure future for your customers together.
If you’re ready to start defending your deliveries, contact us to learn more about our services.
Let’s Talk!
Black Friday 2024 Predictions: Strategies, Challenges, and Social Media Importance
Black Friday 2024 Predictions: Strategies, Challenges, and Social Media Importance
The countdown to Black Friday 2024 has begun, and with it comes a fresh set of challenges, opportunities, and strategies for retailers and e-commerce businesses. This year, a sharper focus on supply chain management, fulfillment services, and the influence of social media marketing will be critical for maximizing revenue. Here’s what to expect and how to prepare.
Analyzing Trends from Previous Black Fridays
Looking back at Black Friday 2023, we saw record-breaking sales despite economic uncertainties. The growing adoption of e-commerce fulfillment and an increased reliance on third-party logistics (3PL) services enabled businesses to handle large order volumes seamlessly.
Retailers also leaned on social media platforms like TikTok and Instagram to reach younger, deal-savvy audiences. These platforms aren’t just trend setters—they’re deal finders. Expect this trend to deepen in 2024 as more consumers rely on social media for discovering sales and promotions.
Strategies for Black Friday 2024
Embrace Inventory Optimization
Efficient inventory management is essential for handling high-demand periods like Black Friday. Utilizing cloud-based warehouse management systems (WMS) ensures real-time updates on stock levels, helping businesses prevent overselling or running out of inventory.
Improve Shipping and Delivery Options
The demand for same-day and next-day delivery is higher than ever. Businesses should streamline their logistics using tools like a transportation management system (TMS) and focus on last-mile delivery strategies to satisfy customers’ growing expectations for speed and reliability.
Capitalize on Social Media’s Growing Role
Social media has evolved into a powerful tool for creating urgency and excitement around Black Friday deals. Live shopping events, interactive posts, and influencer partnerships can help retailers increase visibility and drive engagement.
Leverage Value-Added Services (VAS)
Offering services like kitting and assembly, bulk shipping, or even customizable packaging can make your brand stand out. These extras often translate into better customer loyalty and satisfaction.
Addressing Challenges for 2024
While the opportunities are plentiful, Black Friday 2024 comes with its own set of challenges.
Supply Chain Disruptions
Ongoing global events continue to affect freight forwarding, customs brokerage, and international shipping. Businesses must prioritize supply chain optimization and vendor-managed inventory (VMI) systems to mitigate these risks.
Rising Costs in Warehousing and Distribution
As operational costs rise, optimizing warehousing and distribution is key. Consider incorporating warehouse automation to improve efficiency and reduce labor costs.
Ensuring Order Accuracy
Maintaining order accuracy and quality control is critical during the rush of Black Friday. Missteps here can lead to costly returns, negatively impacting both profits and reputation.
The Role of Social Media in Black Friday 2024
Social media isn’t just an optional channel; it’s a necessity. Why? Because it offers a direct line to consumers. Platforms like Facebook, Instagram, and X (formerly Twitter) allow brands to target shoppers with precision.
- Interactive Promotions: Host giveaways or flash sales exclusively on social media.
- User-Generated Content (UGC): Encourage customers to share their purchases and tag your brand for a chance to win prizes.
- Video Content: Short-form video content can highlight the best deals and generate excitement.
Using order tracking and management systems to integrate live updates into social platforms can further enhance the customer experience by keeping them informed about their purchases.
Emerging E-Commerce Trends for Black Friday 2024
Multi-Channel Fulfillment
ntegrating physical and online stores allows businesses to offer options like in-store pickup or hybrid shopping models, boosting convenience.
Sustainability
As consumers become more eco-conscious, offering sustainable shipping and packaging optimization solutions will resonate with shoppers.
Reverse Logistics for Returns
With higher sales, there’s a greater likelihood of returns. Efficient reverse logistics systems can turn this challenge into a competitive advantage by providing hassle-free return experiences.
Emerging E-Commerce Trends for Black Friday 2024
Multi-Channel Fulfillment
ntegrating physical and online stores allows businesses to offer options like in-store pickup or hybrid shopping models, boosting convenience.
Sustainability
As consumers become more eco-conscious, offering sustainable shipping and packaging optimization solutions will resonate with shoppers.
Reverse Logistics for Returns
With higher sales, there’s a greater likelihood of returns. Efficient reverse logistics systems can turn this challenge into a competitive advantage by providing hassle-free return experiences.
Why Fulfillment Services Are Essential
Managing the complexities of Black Friday requires robust order fulfillment solutions. Partnering with experienced 3PL technology solutions providers can streamline operations, improve order accuracy, and reduce shipping delays.
A well-integrated inventory tracking software ensures that stock levels are updated across all channels, enabling businesses to promise accurate delivery dates.
Preparing for Black Friday 2024
With Black Friday 2024 predictions indicating heightened competition, early preparation is the key to success. Focus on these three areas:
Demand Planning and Forecasting
Use historical sales data and predictive analytics to anticipate consumer demand accurately.
Scalable Fulfillment Solutions
Ensure your fulfillment center has the flexibility to handle a surge in orders during the Black Friday weekend.
Enhanced Customer Experience
Offering perks like free returns, on-time delivery, and live order tracking can help differentiate your brand in a crowded market.
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…
Preparations for Black Friday 2024
Black Friday 2024 will test businesses’ agility, creativity, and operational efficiency. Success will hinge on adopting advanced e-commerce fulfillment strategies, optimizing shipping and delivery, and leveraging social media to its fullest potential.
By addressing challenges like supply chain disruptions and focusing on scalable solutions, businesses can maximize revenue during this high-stakes shopping event. Start planning now, and make Black Friday 2024 your most profitable one yet.
Let’s Talk!
Order Fulfillment Pricing: Why Details Matter
Order Fulfillment Pricing: Why Details Matter
In today’s fiercely competitive e-commerce landscape, understanding the intricate details of order fulfillment pricing is paramount for e-retailers. Quick quotes may seem enticing but often result in unforeseen expenses. Falcon Fulfillment, dedicated to offering top-tier fulfillment services, is here to guide you through the process.
Order Fulfillment Pricing Basics
Understanding order fulfillment pricing requires a deep dive into its key cost components:
1. Setup Charges: These one-time fees are essential for seamless integration between your systems and the fulfillment provider’s systems, ensuring uninterrupted operations.
2. Receiving Charges: Costs associated with the intake of your products, including tasks like counting, inspection, and labeling. It’s the initial step in the fulfillment process and sets the stage for smooth operations.
3. Storage Charges: Monthly fees for housing your goods within the fulfillment center. These charges are influenced by various factors, including the duration of storage, size of items, and any special storage requirements. For instance, temperature-controlled storage may come at a premium. Furthermore, storage charges can vary greatly based on the location of the fulfillment center. Storing products in or near major metropolitan areas often comes at a higher cost, but it can lead to lower shipping costs due to proximity to customers.
4. Pick and Pack Fees: These costs are exactly as the name implies – they cover the labor and resources needed to pick and pack your products, making them ready for shipment. This stage typically incurs the most significant labor costs. However, the exact costs can vary based on the complexity of your processes. Do you have unique packout requirements? Are there a high volume of returns that need processing? These variables can significantly impact your pick and pack expenses.
Beware the Instant Quote for Fulfillment Services
Quick quotes for fulfillment services might seem convenient, but they often fall short in terms of accuracy. While they can provide you with a rough estimate, they rarely encompass all the details required for precise pricing.
The allure of a quick quote is akin to fast food. It’s a convenient option that saves you time in the short run. However, is it truly the best solution for your long-term needs? The short answer is no.
Fulfillment pricing based on high-level data may require re-pricing once the provider starts operating and realizes that many of the assumptions made for the initial price quote were inaccurate. Unfortunately, most re-pricing exercises don’t result in a price decrease.
Imagine being four months into an outsourcing partnership and having to explain to your superiors why the order fulfillment budget needs a significant increase. It’s not an ideal scenario and can harm your reputation.
This is why it’s crucial to be cautious of fulfillment service providers that don’t push for as much detail as possible. While they might seem easy to work with in the short term, the path to cost-efficiency and successful e-commerce operations begins with a meticulous evaluation that delves beyond the surface-level appeal of instant quotes.
To ensure accurate cost estimates and avoid unforeseen expenses, it’s imperative to delve into the specifics of order fulfillment pricing. In the next section, we explore the critical details that can significantly influence your order fulfillment pricing, emphasizing that more detail is not only the key to accuracy but also to cost savings.
Details You Can Provide a 3PL for Accurate Pricing
As the saying goes, “pay now or pay later.” It’s best to do your homework before seeking e-commerce fulfillment services. Here are some of the details that the best and most trustworthy fulfillment partners will want from you:
1. A Full Description of Your Products:
One of the fundamental pieces of information required for optimal 3PL order fulfillment pricing is a comprehensive description of your products. This includes details such as the total quantity, dimensions, and SKUs per case. Understanding your products enables your 3PL to determine storage and picking space requirements. It helps them decide whether your inventory can be stored vertically or horizontally, the strength of racking needed, and the size of the pick front required.
2. Fragile or Hazardous Products:
If any of your SKUs are fragile or hazardous, it’s vital to communicate this information to your partner. These products often require special storage and handling, which can significantly impact 3PL order fulfillment services pricing.
3. Palletized vs. Floor-Loaded Shipments:
Providing insights into the ratio of palletized vs. floor-loaded shipments is crucial. It helps your 3PL forecast the labor, time, and space required to receive shipments accurately, reducing the risk of bottlenecks during the receiving phase.
4. SKU Makeup of Inbound Shipments:
Your 3PL needs to know the average number of SKUs per shipment and the number of pallets or cases created from each inbound shipment. They also need to understand the percentage of cartons or pallets that contain mixed SKUs vs. a single SKU. Detailed data in these areas helps prevent unexpected dock delays and charges.
5. Special Receiving Requirements:
If your inbound receiving process requires more than a basic general inspection, this should be communicated. Tasks like barcoding, labeling, or quality audits can impact dock-to-stock time and costs.
6. Special Storage, Stock Rotation, or Handling:
Products that require special storage conditions, stock rotation, or specific handling instructions must be highlighted. Whether it’s temperature-controlled space or specific shipping requirements like FIFO (First-In, First-Out) or FEFO (First-Expired, First-Out), these details can significantly impact storage and operational costs.
7. Average Weight of Pallets or Cartons:
Knowing the average weight of your standard pallets or cartons is essential. It helps determine whether your pallets can be stacked and how many can be stacked, allowing your 3PL to find the most effective configuration and racking choice to control your storage charges.
8. Number of Unique SKUs in Storage:
The count of unique SKUs in storage directly affects fulfillment center pricing. Each SKU requires its own slot or bin in the fulfillment center, so the more SKUs you have, the more space and expense are needed. Providing precise data in this regard ensures accurate 3PL order fulfillment pricing.
9. B2C vs. B2B Order Ratio:
Clearly defining the ratio of B2C (Business-to-Consumer) vs. B2B (Business-to-Business) orders is critical for calculating a realistic cost per order. Sharing details from your existing service level agreements helps your 3PL understand your multi-channel fulfillment operation.
10. Special or Value-Added Services:
If your orders require special or value-added services like kitting, on-the-fly kit assembly, or custom labeling, it’s vital to inform your 3PL. These services impact the scope of work and need to be accurately defined for pricing purposes.
11. Special Release Days or Promotional Spikes:
Any information related to your sales trends, special release days, or promotional spikes should be shared. This data helps your 3PL design the most efficient labor plan.
12. Packout Process for Orders:
The packout stage is where most fulfillment expenses occur. Providing detailed information about your packout process is crucial for accurate pick and pack pricing.
13. Packaging and Dunnage Materials:
Details about the types of packaging and dunnage materials you use can have a significant impact on both warehouse operations and shipping costs.
14. Returns Processing Standards:
If your company has specific standards for processing returns, these must be communicated. Returns are typically more work-intensive than order fulfillment and need accurate estimates of space and staffing.
15. Monthly Velocity of Each SKU:
Understanding the velocity of each SKU is crucial for designing an efficient storage configuration and pick line, which can have huge cost implications.
16. Order Flow Integration with 3PL’s Systems:
Seamless order flow is essential for a successful partnership with your 3PL. Details about how orders will be placed and the systems integration and data flow requirements between your systems and your 3PL’s systems must be discussed.
It’s imperative to understand that accurate and lower order fulfillment pricing hinges on the details you provide to your 3PL. The more comprehensive the information, the more precise the 3PL order fulfillment pricing, and the greater the potential for cost savings.
Order Fulfillment Pricing and Tax Accounting: More Alike Than You Think
The parallels between order fulfillment pricing and tax accounting are striking. Just as you wouldn’t entrust your taxes to an accountant who promises to complete them in an hour without gathering all the necessary information, quick quotes for fulfillment services often lead to inaccurate pricing.
The best fulfillment operators are the ones who ask plenty of questions. Our advice: indulge their appetite for details. They can use those details to create the most cost-efficient operation possible and provide a fulfillment price quote that you can confidently use for budget projections without the fear of undergoing a re-pricing exercise after the start-up.
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…
For expert guidance on fulfillment pricing and optimizing your order fulfillment process, reach out to Falcon Fulfillment, your dedicated partner in streamlining e-commerce operations.
Remember, controlling order fulfillment costs is pivotal in staying competitive in e-commerce. Falcon Fulfillment has the experience, technology, and expertise to guide your business toward success.
Let’s Talk!