How To Launch A Business Without A Warehouse: Contract A Fulfillment Center

Anybody who has ever considered starting a their own business will know there are a variety of hurdles which have to be overcome before you even get started. Shipping and warehousing is one of the major hindrances to new businesses. In the past, business people had to have sufficient warehousing space to storage space to house sufficient quantities of whatever products they produced or sold. They also needed to hire staff to store, handle, pack and ship items. Building, buying or renting a warehouse, as well as hiring the required number of employees to run the operation would be too costly for most growing businesses. At one time, launching a business without a warehouse was unthinkable.

Remove the Need to Operate a Warehouse

Fortunately, however, there is now a solution to this problem. You really don't really need your own warehouse, storage facilities, and shipping and order pickers to be able to set up your own business anymore. Instead, you could use a fulfillment warehouse or drop shipping service. A fulfillment center will take care of all of the issues with warehousing and shipping products, saving you not only valuable labour costs, but also the cost and trouble of needing to have your own warehouse.

A Fulfillment Warehouse Lets you Focus on Running Your Business and Forget About Shipping

Launching a business without having a warehouse can actually have its advantages, some of which will be more obvious than others. New businesses receive immediate benefits by being able to concentrate on the things they do best, creating and marketing quality products that ensure a reliable customer base. Their inventory, packing, storage and shipping are left up to the experts. You save time in using a fulfillment center. You also save money in labour costs.

A Fulfillment Center Provides Versatility

However there are other advantages to contracting a fulfillment center which you may not have considered. Firstly, with a fulfillment warehouse pay storage only for the space you use, this is a lot more cost effective than having a size able warehouse that is empty half of the time. Utilizing a fulfillment center allows you to be flexible regarding the amount of space you need and enables you to balance it with the changing needs of your business. If you do require more space, you won’t have to build another warehouse; rather, you can just lease extra space in the fulfillment warehouse. You can also reduce your shipping costs by qualifying for bulk rates far quicker than you otherwise would.

Use a Fulfillment Center and Save Money

Fulfillment centers can help you reduce your shipping costs in a couple of ways. Firstly, fulfillment centers purchase shipping materials (like tape, envelopes and boxes) in huge quantities, making them eligible for discount rates. Often this saving is passed on to you, the client. Additionally, parcel delivery carriers offer fulfillment centers a better rate than other businesses. This is, of course, because they ship many more parcels than most other businesses. Due to the fact that fulfillment centers manage the shipping for such a large number of companies, they are able to negotiate a cheaper per package rate from couriers such as FedEx and UPS. Once again, much of these savings are passed on to you, the customer.

If you consider the many savings you can realize when launching your new business without your own warehouse, it simply makes good sense to use a fulfillment center. Leave the handling and shipping to the people that do it best, and you can spend your time focusing on what you do best: running your company.

By: Jeff Ehrlich

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Jeff Ehrlich is the head of FulfillmentPlusNY which offers fulfillment services for a litney of businesses nationwide.Contact Jeff for product storing & shipping.