Are Online Fulfillment Services Worth Using for E-Commerce?
Growth of Online Spending
One of the fastest growing areas of retail business is online spending. It is by far one of the most quickly growing industry in the United States. Since 2011, the industry has grown by 15%, and shows no signs of slowing down. It has regained it’s momentum since the recession, and will continue to be a strong factor in the retail business. When U.S. consumer spending flew past $186.2 billion, your business cannot afford to miss out on the opportunity. Fulfillment companies are meant to help you with that.
Potential of Online Fulfillment
The goal of any online fulfillment services is to help businesses, especially small businesses, to adapt to the new e-commerce world. It promises to keep the small businesses competitive in the new age market. Larger businesses can easily evolve and adapt themselves to the electronic world, because they have the resources to make the change. For smaller businesses who do not have the same levels of capital, and cannot as easily make the changes necessary, companies such as Houston logistics are there to help you. But are they worth it?
Online fulfillment services are third party companies which gives you a way to outsource your customers online purchases. It is a simple process, which many have overly complicated. First, with full service logistics services, you will send the company pallets of your merchandise and goods. The company will then keep an inventory of all of the goods you send them, and ship orders out for you. They do all of the hard work, all you have to do is keep them supplied. Generally, you will not have to do anything else besides keep them supplied. They do all of the hard work for you.
The first question that almost everyone will have, is how much does this cost? Is the price of having a fulfillment service going to eat into your profits? The price of the service is going to change depending on the company that you use, as well as the level of services that you are going to need to hire them for. Typically, there is a base price that all companies will charge. Then, there is going to be another set fee for each sale and shipment that they take care of. However, shipping costs are typically cheaper than if you shipped them yourselves, which puts more money in your pocket. More explained here: http://fitsmallbusiness.com/order-fulfillment-services/
Right Choice for You?
Knowing this information, you have to know if this is the right choice for you. Many businesses believe that they can do all of this themselves. But, what they do not realize, is how much time, effort, and work it takes to ship each order individually, keeping up with all online orders quickly, while at the same time running their physical business. It can be a daunting task, that most cannot accomplish easily. The benefit of using fulfillment services, is that you are able to give someone else that responsibility, while at the same time saving yourself money and time.