By Raymond Santopietro Submitted On May 16, 2016
Online order fulfillment services are 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. Due to the fact that 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 in order for en 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.
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 it's own to process those orders and arrange for shipping to the customer. This 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.
Online fulfillment services are the wave of the future, allowing for more strategic positioning of inventory nearer to customers, allowing for cheaper prices to be charged for the same goods, and keeping businesses running in a streamlined way that can expand and contract as necessary.
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