Fulfillment Companies Position You Anywhere
Your positioning of your warehouse on transport routes is important to the cutting of costs on nearly every order that is placed on your website. In traditional retail setups, your physical location creates a situation where you only will sell to the local population for the most part, and the costs associated with that process are covered by the pricing model in place. In the online space, the lack of need of a physical location and sales team brings costs down, however the need to apply a shipping charge to each and every order brings the total costs back up. The need to compete within a space that functions almost entirely on low prices compared to competitors means that you need to figure out ways to cut costs all the time, as competitors are always doing the same.
The advent of online search engine price comparison features has completely changed shopping. Once the online space itself created a situation where people would accept the fact that they could not touch and hold an item before purchasing it in exchange for a lower price, those in the online space selling the same products as traditional stores found their business booming. Not only could they offer the same items at lower prices while still maintaining a profit margin, they also could easily sell to a far wider audience. Once the search engines employed the comparison by pricing features, searchers online could compare each legitimate online store for the lowest prices. Because the shopping experience online is not very different from store to store, price because the primary reason sales happen. Within the competitive space of the internet, the search for new ways to shave costs drove prices to near rock bottom, and only innovation would enable them to go lower.
Fulfillment companies like Ship My Orders allow this to happen while still maintaining your profit margins. The way it works is that we take care of all of the aspects of processing the order for delivery from the point of the order being placed. In the past, the orders placed on your website then get transferred to your warehouse and processed by your staff, with you covering all of these costs. We lower your processing costs by working with multiple businesses within the same space and using the same employees. This allows us to charge you fees that are ultimately lower than if you did it yourself, and you do not have to bear the burden of employee management or warehouse rentals as a bonus. These lowered costs alone are many times enough to put you ahead of competition, but if you really want to shave costs the positioning of the warehouse is the ultimate.
By strategically positioning inventory in warehouses located on transport lines feeding the east coast or west coast, you can have your customer orders processed from a position that is close to each customer, thus reducing the transport charges on every order. This gives you the edge by allowing you to charge less for shipping and show each customer a lower price, or apply those savings toward your bottom line.