Shipping 2.0 – Using a Virtual Warehouse Service
With a virtual warehouse service, all you have to lose are rent and delivery costs. Doggypads.com founder Mark Stern was thrilled about outgrowing his 3,000-square-foot leased warehouse–until he discovered that moving to a larger one would eat up his 4-year-old company’s margin advantage over competitors. But instead of opting for an old-world warehouse fulfillment service, the million-dollar pet supply company linked up with a Web 2.0 service provider called Shipwire, simulatenously avoiding a capital expenditure and reducing shipping costs overall. “As it stands now, Doggypads saved 66 percent a month on rent by [using] Shipwire over our own warehouse,” says Stern, 34, whose company is based in Los Angeles. “Those savings continue to increase as our volume grows–not to mention the costs we’ve offset or eliminated by using a third-party fulfillment company.” Those costs include insurance premiums and expenses related to employee management. Read more. | PDF Version.