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Logistics-Increase Revenue and Reduce Overhead

Logistics-Increase Revenue and Reduce Overhead 1Having a business, which relies heavily upon product distribution across the nation, has many challenges. Besides the elements of selling your products and acquiring enough business to sustain it, there is the added challenge of shipping. Logistics for small and large businesses can be a profit driver for some, or a loss for others, especially if it is not managed well.

Depending upon your shipping needs choosing the right man for the job is essential to your success. For example if your shipping needs require shipping to local cities within your area only, a solid courier company is ideal. But if your customer base is national and local it becomes necessary to find a logistics company to ship nationally. Major shippers like Fedex or UPS have a core business of national shipments. While they will ship from/to any location, the shipment is still billed as a national shipment and the costs remain as such. What if you could find a company that does both. For their local shipments they have local couriers and for the shipments across the nation they provide air service. Finding a local company that does both is ideal and could possibly save a business a substantial amount of money and hassle.

Besides potentially saving money, think about the added service you could provide for your local customers; such as “same day shipments.” Let’s say you decided to offer same day shipping for local customers at the same average cost they would normally pay to get it in 2-3 days. The need to have something immediately is a strong motivation for buyers and consequently one of the many shipping related challenges of ecommerce. If your customers are able to buy whatever you’re selling in a local store, chances are they will choose the local store since their need to have it now is almost always a deal breaker. But if your product is one that cannot be found in a local store, you have other challenges of making a sale. Virtually all of them are related to shipping. How long will I have to wait? How much does it cost for expedited shipping? Will it get here in time? Will it get here at all? These are the questions that go through the minds of buyers before they purchase anything online. Being able to offer same day shipping to your local customers alleviates all of these. In fact, the reality is, most people would probably pay more to have their merchandise the same day.

Overall, using two separate shippers, one for local business as in a courier, and one for national shipments, may not be easily managed. Ideally, finding a company that meets all of your shipping needs is the most efficient method regardless of cost. The ability to manage all of your shipments online, like tracking, delivery notification, and status of shipment are all added features to consider in a shipping company. Consider a company who can also store your bulk product along with shipping it. This could be another way to simplify, streamline, and cut your business’s overhead by a substantial amount. Not to mention the reduction in shipping errors, such as late shipments, incorrect product deliveries, etc. With one company to handle everything you stand to gain a much better customer retention rate.

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