Third Party Order Fulfillment Streamlines Business
The entire point of an online business is to eliminate the costs of a physical workspace while expanding your reach to areas that are outside of a typical drive up market. What we have discovered over time is that the costs that would typically be seen in a retail location which must be covered by being worked into the price that a product is sold for is greater than the charges that need to be added for shipping. What this means is that you can purchase a product online and have it shipped to your home for a lower price than it would be if purchased in a retail location, while the profit margins can remain the same for both companies. These lowered prices have caused most consumers to utilize online shopping as a means of saving money, and to increase their own convenience factor. You can shop online at any time of day without having to drive to a store, and if you save money doing it that way as well obviously consumers are going to respond to that method. For these reasons the shift to online shopping has been dramatic over the past few years, and now costs are being reduced even further within that space as it evolves.
One of the costs that has been found to be able to be reduced is the “back of house activities.” While there is no need for a physical store when you can use a website to do the sales work, one aspect of physical labor that is not able to be automated effectively is the picking of products from inventory and shipping once an order is placed. While the physical nature of storage of inventory and the need for labor to accomplish these tasks has yet to be eliminated, the costs associated with them can be reduced through the use of outsourced fulfillment companies like this one. Instead of securing an entire warehouse space yourself and paying for space that is not necessary, and instead of paying all of the expenses that go along with employees and employee management, companies like ours do it for you. We use our warehouse space where you only pay for the portion you use, and we use our employees to process your orders, making it so that you are only paying for the time you use. Generally this is going to translate to significant savings for you as a business, who can finally operate in a true virtual fashion. Once you figure out the savings that this shift away from doing it yourself will bring, you can either apply the savings to your bottom line as profits or reduce the prices of goods purchased, thus increasing your store loyalty by customers. People seek the cheapest goods online with the best and fastest service, and through the use of an outsourced and specialized fulfillment company you can increase both. The world of ecommerce is evolving, and third party fulfillment is a big part of it.