West Coast And East Coast Fulfillment Companies
Do you own an ecommerce business that operates online and sells to the entire United States? Chances are that you answered yes to this question, and are not restricting your customer base at all due to the position of your warehouse. This means that you are selling to customers that are as far away from the origination point of the order as possible, adding un-necessary charges to every order that is more than half the country away. This translates to wasted money on half of all orders placed, provided your warehouse is located on either the west coast or the east coast. When it comes to saving money in order to assure survival in the hyper-competitive world of ecommerce, any way to shave charges off a bill will give you a competitive edge. This is why fulfillment companies that operate with locations on the east coast and the west coast make so much sense for businesses.
A fulfillment company is an independent organization that provides the services associated with processing and shipping for their customers. A fulfillment company will take charge of your inventory which is stored in their warehouses, and then process orders that are placed on the company website. They use their own employees to process the orders that are placed and arrange for transportation to the customer door via a shipping company like UPS or FEDEX. While the fulfillment company has a specified charge that is associated with processing the order, the shipping charges are calculated using the distance from the warehouse to the customer. The amount of time that it will take for that order to reach the customer will also be determined by this distance, generally being a minimum of three days and a maximum of five days. This is the way that a business can build customer loyalty while also saving money. By promising an order to be delivered within five days and actually delivering the order in three, the customer feels a sense of satisfaction that you have over-performed. This type of customer is far more likely to re-order from you again.
Another aspect of using a shipping fulfillment company with dual locations on the east coast and west coast is that you can charge a flat fee for shipping which will cover the worst case scenario, and then ship from a location that has a lower charge. This is accomplished by positioning inventory on the east coast and the west coast, then delivering to the customer from the location which is closest at all times. On roughly half of all orders, you will be paying less for transport than the full price that is covered by the flat fee, literally adding profit to every order placed. Through the use of a fulfillment company in this capacity, you will generally see the added costs of the dual warehouse storage be easily compensated for, and profits to be seen by the overages. Through securing these overages as profits, you have the ability to lower your prices or potentially apply 100% to your bottom line, increasing profitability.