Outsourcing to a Fulfillment Company, the Advantages

Outsourcing to a Fulfillment Company, the Advantages

ONE OF THE MANY ADVANTAGES OF OUTSOURCING TO A PRODUCT FULFILLMENT COMPANY HOUSE, IS THE FACILITIES MOST OF THESE COMPANIES HAVE.

For younger products in infantile stages of development, the producer may not have adequate storage facilities or the funds to build them. Fulfillment companies will typically have thousands of available square footage for storage. If you warehouse your own inventory, you have additional expenses such as utilities. A fulfillment company is able to distribute this expense through storage fees they charge to multiple clients, resulting in a typically reasonable storage fee that is commonly less than an individual company would pay themselves. Storage fees vary by fulfillment company, however they normally consist of per item fees, per pallet fees, or dimensional storage fees based on the volume of space your inventory would occupy.  Another advantage is the shipping costs.  Unless a producer is shipping thousands of items per month, the producer will not get the beneficial “bulk” shipping rates available to many fulfillment company.

The price these companies pay can often deviate from standard shipping prices by 30% or more. In some companies, the savings associated with shipping bulk rates provided by fulfillment companies can outweigh the charges of the fulfillment company itself.  You may also be able to negotiate a flat-rate for shipping, meaning you pay a single fee based on weight and service, as opposed to weight, service and destination. This results in predictable shipping expenses, allowing you to budget for your shipping expense.  So find the Best Fulfillment Service for your needs.  It may save your company quite a bit of money in the long run.

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