Notes

Ecommerce Financing Options - Is Outsourcing Your Ecommerce Fulfillment Services a Good Idea?

Fact: Ecommerce fulfillment companies are often expensive. Fact: The best ecommerce fulfillment companies are usually near you. Instead of choosing an ecommerce fulfillment service location or ecommerce fulfillment firm just because of the closeness to you, consider the cost data and use the analysis to guide your choice. The analysis will show that shipping time increases with distance, but if your product is high value, it may not matter much. Ecommerce fulfillment firms offer low-cost services close to your business and this makes them appealing. However, it may be better to find lower cost providers close to you for fast delivery and ease of purchase.


Fact: Most ecommerce fulfillment centers offer overnight shipping on most orders placed through their web portal. Fact: Many customers prefer to have their orders shipped directly to their homes. With many products being shipped in large quantities, and small amounts of money involved in the overall cost of the product, this expedited service can save your bottom line. Order sizes can range from one to thousands of pieces. Some orders consist of several products and many other orders are simply one item. If you want all of these items shipped quickly, you may want to consider having all of your inventory ordered at once.


Fact: An ecommerce fulfillment service is likely to offer you a discount on storing inventories. Fact: If you are not shipping product, but merely storing it until you need it, you may not realize the full storage cost. Many online storage facilities are not affiliated with any vendor, and thus must pass on storage costs to the end customer. This extra cost can turn into a large profit savings. Keep in mind that storage prices vary from one company to the next. You will also need to include the cost of packaging and shipping your products to your customers in this additional fee.


Fact: Using ecommerce fulfillment services allows you to take advantage of a full complement of employees. You do not have to have warehouse employees and you do not have to hire additional sales personnel. Simply put, if you have an inventory that needs to be stored or that needs to be stocked but is not being used today, there are many benefits to using a third party fulfillment center.


Fact: Fulfillment centers offer you exceptional shipping rates, which can save you money over purchasing products on eBay or other auction sites. Shipment times can range from a few days to a few weeks. If your product is simply not being shipped, you are not losing anything because you did not invest in an extended warranty program.


Fact: When you outsource your ecommerce fulfillment , you are making a good investment. When you own a store, you are paying for property, labor and equipment, as well as a brick-and-mortar building that houses your inventory. If you outsource your warehousing, you are simply replacing that investment with an online storage warehouse that you will own. This eliminates the need for additional expensive storage buildings. As a result, your overall cost of operations goes down, which translates into more profits.


Fact: Outsourcing your Ecommerce fulfillment services also means that you do not have to pick through the mountains of packing materials. Packaging experts can pack your items for you using any type of packaging material you prefer, whether it be cardboard, bubble wrap, or real cloth. In addition, you never have to worry about running out of stuffing or the boxes to keep your merchandise from getting damaged while it sits in your storage facility. Ecommerce fulfillment services will load boxes just like you would have if you had picked them yourself.


Fact: Using a third-party fulfillment company also means that you don't have to deal with a customer service department. Fulfillment companies will take care of this aspect of your online business for you. They'll handle returns, return requests, refund requests, and follow up on customer orders. By using an outside company, you won't have to hire employees to deal with these issues. Instead, all you'll have to do is specify in your shipping terms with the ecommerce fulfillment services that your package is deliveryable to the specified locations.

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