Shipping Fulfillment And Logistics
Running a small business is continually challenging, and the need to keep ahead of our competition as far as both price and service becomes more and more difficult. In the past, traditional retailers needed to cover many costs that online businesses have no need to, an example being the rent and maintenance on the physical locations that were necessary in order to simply make a sale. Customers needed to go to a store that had utilities that were needed to be covered, employee salaries and benefits, as well as a myriad of other costs associated with simply getting the products into the hands of the customer. Online stores removed the necessity of many of these things, shifting the priorities over to price and delivery satisfaction as far as what customers were expecting. The reduction of the costs associated with the sales process has allowed online retailers to reduce prices significantly, creating a new level of price competition. Today, the low prices associated with online sales are forcing online merchants to compete with each other, thus forcing the further reduction of prices. At this point, the reduction of customer service will probably not do much good, so the savings are being sought in the process itself.
Shipping fulfillment and logistics is the process of utilizing an outsourced business to take care of all aspects of the process beyond the sale, essentially removing the necessity of running your own warehouse and staff. The process is relatively simple, housing the inventory sold on a website within the warehouses of the fulfillment company and using their employees to actually process orders that are placed on the website. The orders are received at the fulfillment company in the same way that they would be received in your own warehouse, with the information being transferred via a software program that communicates with the shopping cart system on the website. The information is transmitted to the fulfillment company, who then processes the order and arranges the transport of the order to the customer. The savings are seen in several places, and as a result enabling online and traditional companies to reduce prices as a result. The ability to house inventory cooperatively instead of needing to cover all warehouse costs yourself, as well as the staff. Instead, the fees are paid on each order processed and the amount of space used in the warehouse. Additionally, the company is enabled to position inventory closer to customers if there is a dual warehouse system employed by the fulfillment company. This enables the routing of orders from the warehouse closest to the customer, reducing the costs of shipping on each and every order that is placed. Through the reduction of these costs, businesses are able to charge rock bottom prices while maintaining their profit margins, and still provide better prices than their competition.
Ship My Orders is a fulfillment and logistics company that operates warehouses on the east coast and on the west coast, and can save your business money. We look forward to speaking with you about your current shipping and fulfillment issues.