Ecommerce Fulfillment Services
The concept of ecommerce is that a person can shop securely for products that they wish to purchase from the computer or mobile device that is in front of them, as long as it is able to be connected to the internet. Ecommerce itself is the process of putting together a safe and convenient method by which a potential customer can find the products they are seeking, purchase them using an electronic method of transferring money, and then receive those products at their door within a short time frame. Originally, ecommerce struggled with the issues of security, and a mistrust of providing your credit card information online. Through security measures that encrypted the transactions and did not hold credit card information within unsecure databases, these trust issues were resolved. Over time, ecommerce became more popular for the convenience issues, where you no longer had to make it to the store during business hours, and could shop for things right from the comfort of your home. While it was slightly less able to provide information like sizings and fit as compared to in-store shopping, the convenience factor and ability to return items that are not correct has made most shoppers comfortable that they will get what they are seeking, and will be satisfied with it.
Aside from the convenience aspect of ecommerce is the price that can be posted which will cover the expenses of the process and provide a profit. For many years, the added charges that needed to be absorbed either by the customer of the business to cover shipping charges generally made the total price paid for the product to be greater than the price that would be paid if the product was purchased in a store. This is because the bulk transfer of inventory costs less per unit than the transfer of units individually, so the costs to stock a store were less than if you tried to ship that unit to a customer directly from a warehouse and absorb the cost. Over time, the ability to reduce prices through the elimination of unnecessary costs like store fronts and employees balanced the total prices paid out, and eventually skewed them in favor of ecommerce. In a nutshell, the elimination of all of the costs that must be covered in traditional retail gave you a price that was far less that needed to be paid by a customer while maintaining a profit. When you factored in the additional shipping charges that must be covered by the sale, the totals still equaled less than traditional shopping. Once this state of more convenient and cheaper was reached, ecommerce because the method of choice of most people to purchase most things.
Ecommerce fulfillment services are the latest method of cost reduction in the ecommerce world, allowing merchants to completely eliminate their fulfillment departments, warehouses and employees in favor of a third-party handling these responsibilities. Because the warehouses can be cooperatively rented by different businesses within the same buildings, you only need to pay for the space you use. Because the employees of the fulfillment company are used to process the orders, you do not need to cover all of the costs of their employment and instead only pay for what you need. Through this method of cost reduction, ecommerce businesses can further reduce prices, assisting consumers and their own bottom line.