Online Business - Shipping strategy. Need advice and view

Discussion in 'Growing and Managing a Business' started by workingmind, May 7, 2012.

  1. workingmind

    workingmind
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    I am creating a website which will sell some online products. I have not any warehouse where i am keeping things. It will be like i am selling some products on behalf of others and will take some convenience charge.E.G one small manufacturer making a chair (in a different city than mine) and i am selling it online on his behalf. if someone place order for chair then i will call the shipping service company that is in the same city of the manufacturer and ask them to take the chair and deliver it to some customer location. Here That shipping company charges are too much for "pick up" service. so overall shipping cost goes high. As a work around i can ask manufacturer to go and give the chair to shipping company office in their city , but i feel i am adding unnecessary trouble for manufacturer.My basic idea is to keep manufacturer involvement so less and make their life easy so it will be easy for me to convince them to sell their products on my website and hopefully give me some discount. but i do want to make shipping cost high else no would be ready to buy them online.

    What would be your suggestions on it . thanks in advance :)
     
  2. gogreenbusiness

    gogreenbusiness
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    Why don't you just some reasonable mark up with your cost of goods? Getting more people envolved in your delivery process will definitely adds more trouble. It is very risky and will prolong the process.
     
  3. cheochi

    cheochi
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    Shipping companies need to work with logistics, carrier companies and customs brokers to make sure that the right shipments arrive when scheduled so that they can pass through customs in a timely manner- but that is just the tip of the iceberg when it comes to what goes on behind the scenes for freight forwarders. Planning is the most important thing that one should take into account when starting a business. It may what determines whether the business will sustain its course or whether it will collapse before it even perks up.
     
  4. sigma

    sigma
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    When you deal online, you need to really concern about the shipping fee. it will be better for you to find a cheap shipping company at your city or let the buyer bare the shipping cost
     
  5. workingmind

    workingmind
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    Here buyer will bare the shipping charge but my aim is to keep shipping as low as possible and make manufacturer involvement as less as possible. But yes adding more people will add more trouble and unnecessary managing issues. Anyways i need to ask manufacturer to deliver the product to shipping company's near by location so they can increase their sell.
     
  6. Mark T

    Mark T
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    It will mostly depend on the agreement between you and the dealer. If you are going to be a reseller, you should take note of cheap shipping lines but are credible one that will ship the goods/ products that you will be tending to. One thing you can do is to ask or make a survey on your own on what are the best shipping companies that you can make use of. Also, you have to calrify whether the dealer will pay for the fees for shipping or you will carry it on your own.
     

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