Shipping And Order Fulfillment
Any ecommerce business operating online to sell items to customers is forced to pay a fee for shipping through FEDEX, UPS or another carrier with each and every order that is placed. This is a fixed fee that is going to be applied to every order so that the transport of the items can happen. In addition to the costs associated with retailing the item and purchasing the wholesale goods themselves, these costs cannot be reduced very easily, except perhaps by positioning the inventory closer to the customers themselves. This an be accomplished using multiple warehouses on different coasts, and option which may or may not be affordable to most businesses. The reduction of operating costs is a scientific process of elimination, comparing the costs of processing orders yourself against the costs of having someone else do it for you. Fulfillment companies are the best way to accomplish this goal, allowing you to pay only for warehouse space that you use, and then charging a fee per order processed. While it may be more expensive to operate from two different warehouses and pay for space in two instead of one, you will also be receiving the benefits of reduced shipping prices for every order placed, as well as having those orders be received by customers in minimal time. This builds customer loyalty as they are impressed that they receive the orders faster than expected, and saves your company money on every order shipped.
What is the best way for ecommerce businesses to utilize the services of fulfillment companies? The single best setup would be to use a company like ours which operates from two strategically positioned warehouses on the east coast and west coast, and to position 1/2 or the typical amounts of stored inventory in each location. This will bring the charges down as far as areas used in each warehouse, and allow us to process customer orders from the nearest warehouse to them. The way the system works is relatively simple, you ship your inventory to our warehouses where it is held. Our software processes your orders which are placed on your website and routes them to the appropriate warehouse. Our employees in that warehouse process the order and prepare it for transport to the customer using UPS or FEDEX, and you pay a fee per order as well as a fee for the amount of warehouse space you use in each location. The ongoing savings of minimizing shipping charges by reducing the amount of distance traveled on every order provides you with savings that can be applied to your bottom line or passed off to your customer as lowered shipping charges. Any way you approach it, it is a win win for both you and the customer.
When you would like to take the next step in growing your business, contact our representatives in order to find out about our service, and how we might be able to save you money on your shipping, as well as your ongoing operations.