Benefits And Challenges of Coastal Fulfillment

Coastal Fulfillment
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Location is a vital factor in determining the success of a business. Aside from reaching key markets, you need a pivotal location to maximize profits. Sellers and buyers prefer to send and receive their products fast and effectively. That’s why many oft for a coastal fulfillment. Of course, you can choose it too. So you have to understand its benefits and challenges. 

Benefits of Coastal Fulfillment

A costal fulfillment is advantageous if a majority of your products originate from the port.

Decreased supply chain delays

There is a faster transit period for products going to the warehouse near the port. Therefore, it lessens the supply chain delays. Therefore, your online shop is always ready with stocks. 

Manage orders faster

Many of your buyers may ask “What time does UPS deliver?” Oe When are they gong to receive their package? A coastal fulfillment minimizes your total lead time. Before, it took several days before stocks from the factory reached the warehouse. Today, you can receive inventory in time and accommodate clients’ orders immediately. 

Reduced freight costs

Freight cost is what most business owners fears. Mishandling leads to increased expense and delayed returns of investment. But if you have a coastal fulfillment, spending for the transport of containers is lower. A warehouse located near the center of the country makes it possible. Also, a manufacturer within the coastal fulfillment helps reduce overland freight costs. 

More accessible

Convenience and accessibility are vital factors when choosing a fulfillment. For example, you can easily run your business and drop by the warehouse to check the inventory status. Also, you can see in person what problem needs to be prioritized. 

Real-time inventory

Sometimes, tracking an inventory in a warehouse can be a nightmare. Fortunately, coastal fulfillment provides assistance. For every supply received, it gets recorded in their system. As a result, you can check the inventory levels in real-time. Also, you can calculate your safety stock. But, most importantly, it allows you to budget for your supplies. Also, it notifies you when stock replenishment is necessary. 

Being with coastal fulfillment is indeed beneficial. It affects a seller’s perspective when transferring product stocks to the warehouse. Also, it has an indirect effect on buyers. Maintaining a consistent number of supplies allows them to purchase anytime. 

Challenges of Coastal Fulfillment

Like any kind of service, coastal fulfillment has its downside. 

Extended delivery period

Often, a coastal fulfillment fulfills orders within its local area. So delivery across the border is possible. However, it adds more time for the delivery. As a result, your customer must wait for a week or more to receive their package. Therefore, your buyer needs to pay for expedited shipping for a faster delivery. 

The additional delivery period makes your online store less competitive. If a customer can quickly avail of the same product from a different merchant, you lose sales. 

An increased price of order delivery

Shipping an order from a coastal fulfillment adds to your shipping expenses. For every shipping zone that your package crosses, it reflects an extra charge. Therefore, the farther the destination, the higher the shipping fee is. 

As a result, you might find it hard to promote free shipping in your store. Also, higher shipping costs decrease sales. 

Expensive warehousing

Land areas on the coast are quite expensive. The same thing comes with coastal fulfillment. As a result, the warehouse space means a higher rate. So you have to allocate enough budget to accommodate the expenses for your warehouse. If you can save for freight costs, you might as well use the funds for the warehouse costs. 

Lack of Compatibility

Every fulfillment company is unique. For example, some providers specialize in handly fragile items. Meanwhile, others don’t handle such products. Other fulfillment providers can handly bulky and heavy stock, but some don’t. That’s why it matters to choose an eCommerce fulfillment that manages your product type. 

Unfortunately, not all coastal fulfillment can accept your supplies. Some might refuse to entertain your store. They probably lack protocol when a particular product gets lost or damaged. As a result, you need to widen your research and not depend on coastal fulfillment alone. Fortunately, there are plenty of 3PL that might be near you. 

Why 3PL services is a Better Option

3PL is a better alternative for coastal fulfillment. As a third-party logistics, it can accommodate various eCommerce fast and efficiently. 

Convenient inventory

With 3PL services, you can access warehouses in the country’s center. It provides convenience when monitoring and spreading the inventory. You can set up better inventory planning if one location seems to need more supplies. 

With proper management of the inventory, you reduce the carrying costs. For example, there’s no need for you to maintain a safety stock in various warehouses. Also, you can easily identify which location sells most of the products. 

Faster delivery time

Unlike coastal fulfillment, 3PL warehouses are placed in strategic locations. Therefore, it can serve both the seller and the buyers quickly wherever they are. There’s no need to wait for the products to be prepared and shipped from the coast. Now, you have at least two warehouses as an option. The different locations of fulfillment centers pick, pack, and ship customers on time. 

Offer promos and discounts.

A fulfillment center is available in various locations. You can pick a warehouse nearest to your customer. If it is close by, it results in a more affordable delivery fee. Also, you can provide promotions like free shipping capped at a specific order price. Or you may even offer discount vouchers or incentives for being a repeated buyer. However, you need to be mindful of your profit margin. Gaining more loyal customers is crucial. But you don’t want to lose on your end. 

A 3PL fulfillment center is truly different from coastal fulfillment. Coastal service has its limitations and challenges too. As a result, it hinders business owners achieve their maximum potential. But with 3PL like Red Stag Fulfillment Center, you can reach beyond your imagination. Also, it reduces your unnecessary stress since they handle most of your workload. As a result, you can focus more on your business growth. Visit the Red Stag website today!

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