If you conduct all your business through a physical store, you are missing out on valuable sales and possible profit from ecommerce, both in terms of a website and mobile app. Most retailers are moving towards some type of ecommerce but not all are aware of the pitfalls to profitability that accompany the real gains in global trade.
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Your ecommerce store can list goods that you hold in your local store or warehouse or even goods that you do not hold a physical inventory for. Offering multiple choices makes your business likely to attract more customers. The unseen costs arise after the customer has made their purchase.
You can pick, pack and deliver the purchase from your store, warehouse or direct from the supplier. You must consider the costs and benefits of each option, when maximizing your profitability:
Delivering from store stock means that you don’t need to maintain a separate warehouse but it reduces the stock available for customers in your physical store.
Delivering from a warehouse stock means you have to maintain a larger inventory and employees and technology to pick, pack and deliver your goods.
Delivering directly from your supplier removes the need to hold a large inventory, reducing capital outlay but you will lose control of the fulfillment and delivery parts of the process, as your supplier controls these.
Employing a bespoke fulfillment company to handle the fulfillment process in its entirety makes sense if profitability is your goal. A fulfillment company will on receipt of the purchase order from your ecommerce site, pick, pack and arrange delivery of the goods to your customer, according to your previously agreed requirements.
This service gives you the advantages of a warehouse without having to employ your own staff and invest in technology, yet still retain control of how your customers receive their purchases.
This service improves your profitability, when you are selling globally. Setting up warehousing in a foreign market, can be expensive and time consuming and the costs remain, even if the sales don’t. Using a fulfillment company such as DK Fulfilment that has expertise in the UK and European markets can maximize your choice, control and profitability. Your use of the services can increase with your sales.
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