Online order fulfillment services or drop shipping is one of the latest developments in the evolution of eCommerce and online shopping. Traditional brick and mortar stores are finding it more and more difficult to compete with online stores for two simple reasons, price, and convenience.
eCommerce based shopping experiences are designed to allow customers to find and purchase their products without employee assistance, thus creating a situation where consumers can shop at any time of the day or night. Because there are no hours when the business is closed, consumers can shop at their leisure.
For the same reason of having no employees and physical spaces that must be paid for, prices that need to be charged for an eCommerce merchant to be profitable are far lower than traditional stores. The same amount of profit can be seen on each sale with the end-price that is paid by the consumer being significantly less.
No Need of Physical Storage Space
While this may seem like the ultimate system that will make traditional retail locations a thing of the past, it is now becoming apparent that prices can be driven down even more through the elimination of the fulfillment warehouses and employees. Although an eCommerce business exists in a virtual space, there is still the necessity of hiring and managing employees and running a warehouse space that is either owned or rented by the business.
These physical aspects of the shopping experience were seemingly unavoidable until online order fulfillment services were born. Through a software program that communicates with the onsite shopping cart software, the orders that are placed by customers are routed to a third-party facility that houses the business inventory (along with other business’ inventory) and utilizes an employee base of its own to process those orders and arrange for shipping to the customer.
This pos dropship system allows the business owner to have no physical spaces or employees aside from the ones involved in website updating, relieving the owner of the stress of managing the largest expense of most businesses, the employees, and rents. The business is allowed to function completely virtually, and in most cases, even more, money is shaved off the costs that must be passed off to the consumer.
More Strategic Positioning of Inventory
Online fulfillment services are the wave of the future, allowing for more strategic positioning of inventory nearer to customers, allowing for lower prices to be charged for the same goods, and keeping businesses running in a streamlined way that can expand and contract as necessary.
Nowadays, companies, both big and small, prefer to hire an outsourcing partner to deliver their inventories to their customers. It’s good to count on these Order Fulfillment Services providers for your business and saves you time and money.
Warehousing is a professional business and demands full-time responsibility for managing not only inventories but also added labor force that costs you a lot. So, companies move towards professional warehousing dealers rather than doing it themselves. There are some important points to choose the right order fulfillment partner for your company.
Direct Delivery to Customers
Companies providing Order Fulfillment Services have warehouses to place your inventories in them and then to dropship them to your customers. On the other hand, drop-ship allows direct delivery of the product to the customers. As you’ve to pay for the shipment of the inventories to the customers, so location does matter a lot.
A far-off location will cost you more. So, it’s an important point to always hire an order fulfillment partner keeping in mind the location factor. Hiring service in a country where your target market does not reside will be a bad decision and will cost you more. So, whatever exceptional services and outsourcing fulfillment company is offering, its location is the decisive point to close the deal.
Everyone in business tries to grow. Some succeed, and others fall flat on the earth. It happens so in the businesses. The important thing is a clear and candid business plan that guides you to do your future planning and to keep yourself on track. A good businessman keeps an eye on the changing scenario of the international market and also knows the potential of his business.
If you just started your business, a small warehouse will surely work for you; but the potential growth of your business demands you to hire an Order Fulfillment Services company that can accommodate your inventories in his warehouse shortly. So, the second point in choosing an order fulfillment partner is the capacity of the warehouse.