Out Sourced Warehousing is an option you should look into when wishing to expand your business and increase your income profits. This is a technique that I have used and is very, very effective.
Obviously to get products at a cheaper price is to buy them in bulk quantities, but the main reason that most find this hard to achieve is where are you going to store the merchandise?
You use an outsourced warehouse.
Basically what happens is you order the bulk quantity and have it shipped direct to your outsourced warehouse. The warehouse will break down the bulk shipment and re-package the goods into per item packaging.
Then once you sell an item you send the shipping details for the product to the warehouse and they will ship the item for you.
The warehouses to look out for are the ones that offer eBay fulfillment services. These warehouses understand your business needs and know that each individual product is most likely going to a different customer and needs to be attended to with care.
The main outsourced warehouse that I use (and I believe is the best) is Presco Inc (www.presco-inc.com). Below I have provided the services that Presco Inc offer, these are the types of services you should look out for when searching for an outsourced warehouse:
. Mailing Services
| ·Order Fulfillment Center | |
| ·Storage of your eBay auctions and shipment to customers | |
| ·Maintenance of eBay account for your product sales, listing services, shipping, and sales records | |
| ·International Mail and Packaging Forwarding | |
| ·Point of Purchase Display Kits | |
| ·Envelope Assemblies | |
| ·Binder Collations | |
| ·Custom Cartoning | |
| ·Poster Assemblies | |
| ·Individual & Bulk Shipments | |
| ·Local Delivery & Pick-Up | |
| ·Blister Packing and Shrink Wrap |
. Light Assembly Services
| ·Hand Assemblies, Sorting, and/or Counting (Individual or Bulk) | |
| ·Assembly Line Packaging |
. Storage & Warehousing
| ·30,000 Square Feet of Storage Fully Insured |
. Computer Services
| ·Inventory Control & Management | |
| ·Mailing Lists & Labels | |
| ·Individual Invoice & Packing Slips |
. Shipping Services
| ·FedEx – UPS | |
| ·LTL / Air Freight | |
| ·Domestic & International Shipments | |
| ·Overnight Packages |
Presco also offers selling services on eBay. For a percentage of the selling price, they will take pictures and list your items under one of their eBay user ids.
It works like this:
- You purchase your items and have them sent to Presco
- You give Presco the price you need for each item, and provide them with any descriptions or pictures you might have
- Presco will list your items on eBay under one of their user ids
- Presco will send you the amount of your weekly sales, less eBay
fees, PayPal fees, and a percentage of the sales price (Presco’s fee)
- You can concentrate on purchasing items and making money
Reasons why you would want to use an outsourced warehouse:
- You can order your merchandise in bulk therefore increasing your per item profit
- You can have your own business name or logo on the packing slip and packing box
- It gives your company more credibility (we have our own warehouse)
- You start becoming the supplier yourself
In the beginning you can split your business having a portion of your stock shipped from YOUR warehouse and the rest from the drop shipper. The good thing with this is you already know what products you are selling well.
So these are the products that you want to start buying in bulk and shipping from YOUR own warehouse.
This way you can test new product lines while purchasing in bulk quantities and with much less risk of losing out. Eventually you will have all of you products ordered in bulk quantities and shipping from YOUR warehouse. This means you are no longer the middle man but the supplier.
You can also now accept returns, when you explain to a customer where they should return their goods to if there is any problems with the item, you can put the address of YOUR warehouse.
So you should be able to see the benefit and the power that outsourced warehouses have. I’m not saying that this is the definite way that every person should take, its just something that I have done and found to be a good option and good way to expand your business.
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