Fulfillment In The USA
Foreign businesses are always desiring the ability to sell to the wide range of customers in the United States, usually due to the economic prosperity of the US providing disposable income as well as American’s love of products. Companies located in other countries can manufacture products far more inexpensively than they can in the US, which gives foreign businesses an edge if they can figure out a way to get the products delivered to US consumers without adding so much to the price for shipping that it is no longer a value to them. In previous years, there was no way for a foreign business to sell directly to US customers, and instead they had to maintain a physical presence there, either in the form of a store or space on the shelves of an American store. With the advent of ecommerce, a website can be representing a business anywhere in the world, and as long as that business can ship their products to the customer for a price that does not make it more valuable for the customer to simply drive to the nearest store and purchase there, then a business no longer needs to keep an office in the states. The problem is in the shipping charges, which add up when they are not discounted due to bulk. Basically, shipping large amounts of goods to the United States using commercial shippers will add only a small amount to the price that is needed to be paid to maintain a profit margin, but when you use the services of FEDEX or UPS to individually ship orders from one country to another, the charges are so high that an American consumer can simply buy the same product here for cheaper. Smart retailers are using the combination of commercial shipping and third-party US fulfillment companies to process the orders directly.
The way the system works is simple, a fulfillment company like Ship My Orders that has warehouse locations in the United States is contracted by the ecommerce merchant located overseas. The fulfillment company connects to the shopping cart of the website using a software that transmits orders placed on the site directly to them. These individual customer orders are then processed by the fulfillment company using inventory which is stored in the US warehouses by the employees of the fulfillment company. The inventory is transported to the warehouses using commercial shipping services, so the additional fees that are charged by the fulfillment company and the commercial shipper are far less than the price that would be incurred shipping directly from overseas. In addition, the orders being processed directly from a US warehouse will arrive at the customer’s door within days, instead of the weeks it takes to transport from foreign countries. The strategy saves money for both businesses and consumers, allowing customers to benefit from the lower manufacturing costs and still receiving products in timeframes typically reserved for businesses located inside the US. If you are a foreign business who would like to effectively sell to US consumers, contact us today.