Cutting Costs With Third Party Fulfillment

If you have started a small business that uses the internet to sell items, you have gone through a process of comparing different options that will give you the best service for the best prices, and the combination of all of these costs in addition to the actual cost of goods that you have purchased wholesale is responsible for creating your pricing.  You need to cover all of these costs then add a certain percentage for profit in order to maintain your business.  Chances are that you looked to the internet as a sales tool for a number of reasons including the fact that you are able to sell to a far wider group of potential customers, your scope being defined only by how much shipping charges you are willing to pay.  You can sell to anyone in the world over the internet, the only things generally defining limitations on these areas being the currency exchange rates and fees, and the prices that it costs to ship the item to the customer.  If your pricing model covers all of these costs and still provides you a profit, you can literally sell worldwide.  The other reason you probably considered the internet as opposed to a brick and mortar store is that you can eliminate many of the costs of a physical location by using a website.  You no longer need a store with employees to display items so that people can touch them, and instead now only need to appropriately display them on a website for people to purchase.  By eliminating many of the costs that were associated with traditional retail, you are able to keep your prices lower than traditional stores while still maintaining the same profit margins.  All of these things add up to a smart business plan that allows you to sell using modern technology to both save customers money and at the same time eliminate many of the risks associated with opening a traditional store.  Now, the competition is other websites that sell the same things as you, and you are going to need to make some smart choices to keep your prices as low as theirs are.

Do you use a third party fulfillment company? If you do not know what that is then you are probably losing money.  A third party fulfillment company is a service like Ship My Orders that takes your physical inventory and stores it in their warehouses.  When an order is placed on your website, that information is transmitted to them, and they use their own employees to pack the order as you have specified and arrange shipping to the customer.  By using their employees and their warehouses to process the orders that are placed on your website, they remove the responsibilities and costs associated with fulfillment from you.  This means that you do not have to rent warehouse space or maintain employees based on speculation, and you are taking no risk planning for future sales.  You pay only for the space you use, plus a fee per order processed, along with shipping.  In most cases this is going to save significant amounts of money over what you are paying now.  Contact us for more information today.