US Fulfillment Companies Are Bringing Foreign Businesses To The United States
The purpose of this article is not to debate the issue of foreign businesses conducting sales to US customers, and no matter which side of the issue you stand on you must realize that the ultimate goal of consumers is to receive the products they want at the lowest prices available. For many years, the “buy American” push that you will see in marketing materials falls upon deaf ears, or at least ears that choose not to follow the advice when nobody is looking. The fact of the matter is that United States consumers are motivated to buy by a few simple factors. Price and convenience of delivery are the main motivating factors that will influence the decision to buy for US consumers, with “support of an American company” being a consideration but generally not something that is going to cause someone to choose a more expensive product over a less expensive one. The choice of purchase of a more expensive product generally will have more to do with quality of materials and craftsmanship over country of origin, or at least the “perceived” quality of craftsmanship. Most US consumers will lean towards the general belief that inexpensive products manufactured overseas will generally be of cheaper quality, but on many purchases consumers will still choose to purchase the lesser of the tow items with regards to cost. The real quality of manufacturing as a motivating factor has been significantly diminished over the past few decades as “disposable cultural items” take more hold among youth culture. Younger people tend to care less and less about item quality each year, with their focus being placed more on fashionability and costs.
With that said, the one drawback to operating a business website that is operated from a non-US entity and sells to US consumers has been shipping. Direct to consumer sales of goods to US customers through websites offer the ability for United States customers to take advantage of costs which are far lower than for those charged for goods produced in the United States. This is due to the ability for workers in factories in non-US countries to pay their workers less than workers domestically. Using the exact same materials, an item produced in a factory in the United States will cost more than an item produced overseas, and while there may be less attention to quality of construction most consumers are willing to take that risk knowing they can return an item if it is faulty. Due to the fact that the same item will cost more to produce by a United States company and websites are not bound by international borders, US consumers are no longer bound to the prices that are offered by their local businesses. Orders of goods can be placed online eliminating the costs of operation of retail stores, and the cheaper labor costs that are in place overseas can save even more. The only thing that will generally cause a consumer to not choose a foreign website through which to purchase is the added time and expense of shipping, which in many cases will cause an item produced overseas to cost the same as one produced domestically when you also factor in delivery charges. Items shipped from overseas will also take significantly longer to deliver to the customer than one originating from a US address.
The game changer of this entire scenario is the advent of US fulfillment companies. These are companies that utilize software to connect to the ecommerce software on any website in the world. Through this software, the fulfillment company can receive order information and fulfill the order from the warehouse that is located closest to the customer. The company operating the website will need to ship their inventory to the fulfillment company for management from their warehouses, but aside from that fact the process will be exactly the same as any company operating inside the United States. Delivery times and charges will be the same as US counterparts selling the same items, and due to the lower charges for the production of the product there will generally be able to be a lower price needed to be charged in order to maintain a profit margin. US fulfillment companies are the best way for foreign businesses to sell to US consumers, and are creating a legitimately global economy.