Start A Business Without A Warehouse: Use A Fulfillment Center
If you have ever seriously considered starting up a new business then you will know
there are quite a few obstacles which must be overcome before you can get your new enterprise up and running. Warehousing and shipping is one of the main problems facing new businesses. In the past, businesses needed sufficient warehousing space to store enough stock of whatever merchandise they produced or sold. They also needed to hire personnel to pack, ship, store and inventory this merchandise. Building, buying or renting a warehouse, as well as hiring the required number of staff to run the operation would often be too costly for most small businesses. At one time, launching a business without a warehouse was unthinkable.Remove the Need to Operate a Warehouse
Fortunately, there is now a solution to this problem. You no longer need your own warehousing facilities, and shipping and order pickers in order to start up your own business any longer. Instead, you could contract a fulfillment warehouse or drop shipping service. A fulfillment center will take care of most of the aspects of warehousing and shipping products, saving you not only expensive labour costs, but also the expense and hassle of running your own storage facilities.
Focus on Your Business, Not on Shipping
Launching a business without your own warehouse actually has its advantages, some of which are more apparent than others. New businesses enjoy immediate benefits by being able to focus their attention on the things they do best, producing and marketing quality products that ensure a reliable customer base. The warehousing, packing, shipping and inventory concerns are left up to people who are deeply professional and proficient in these aspects of running a business. You save time in removing the need to hire and train a shipping and receiving department. You also save money in labor costs.
A Fulfillment Center Offers Versatility
However there are additional advantages to contracting a fulfillment center which you might not have considered. For starters, with a fulfillment warehouse pay storage only for the space that you need, as opposed to having a warehouse that is empty half the time. Utilizing a fulfillment center allows for greater flexibility concerning how much space you need and enables you to balance it with the growing needs of your business. If you do require more space, you don't have to put up another warehouse; rather, you can just rent more space as needed. Additionally, you can enjoy huge savings in your shipping costs by virtue of enjoying bulk rates even before your companys shipping would normally be eligible for such savings.
Fulfillment Centers Can Give You Better Rates
This can be achieved in a couple of different ways. Firstly, fulfillment centers purchase shipping materials (like tape, boxes and envelopes) in large quantities, making them eligible for discount rates. Often this saving is passed along to you, the client. Additionally, couriers offer fulfillment centers a considerably better rate than other businesses. This is because they ship more parcels than a typical new business does. Due to the fact that fulfillment centers manage the shipping for so many companies, they are able to negotiate a cheaper per package rate from couriers such as FedEx and UPS. Again, these savings are often passed along to you.
With all the money you can save by starting your new business without a warehouse, it makes perfect sense to contract a fulfillment center. Leave the shipping and handling to the people that do it best, and you can spend your time doing what you do best: developing your company.
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