The importance of having a solid e-commerce presence to fall back on for small and mid-size retailers selling oversized items
The industry of large items has long been known to gross impressive profits – whether you’re selling furniture, exercise equipment, refrigerators and more, there’s no debate on the high returns that business owners can experience when selling big, bulky items.
In an aim to increase profit margins however, small and mid-size businesses tend to focus their efforts on local deliveries within neighboring areas in order to cut down on cross country transportation costs, warehousing fees and to reduce the overall risks that come with shipping large items on a national scale. When business owners take these factors into consideration, more often than not the desire to avoid risk outweighs the opportunity costs of foregoing the pursuit of selling to Americans on a national scale.
As great as the temporary effects of risk reduction are through maintaining a limited service area, this business model can prove detrimental to retail stores in the long term during times of economic uncertainty or turmoil, with these small and mid-size retail stores having severely limited streams of income that are putting them in a vulnerable position with 1 out of 10 stores being at risk of having 20% annual revenue reduction if their brick and mortar store were to close for 2 months.
This staggering figure raises the question of if small to mid-size businesses want to tackle the associated risks in order to better position themselves to handle a volatile economic environment, how do they manage such a cost heavy business model upgrade? To satisfy the demands of the modern ecommerce industry would mean amassing expensive resources to meet mounting customer expectations which include but are not limited to: fast shipping, expansive warehouse storage and tracking system, heightened transportation costs, a responsive customer service system and much, much more.
The overwhelming nature of these questions are often the reason why these retail stores put expanding their ecommerce business on the backburner, which although understandable, could lead to an untimely and sudden downfall in the event of unexpected economic downturn.
The Giga Cloud B2B Marketplace was created as a solution to this predicament faced by thousands of retail stores that sell oversized items. With a web design built to address common challenges often faced, the burden of uncertainty is lifted and these businesses are given the tools to successfully permeate the ecommerce marketplace with cutting edge and reliable backing from the Giga Cloud Marketplace that offers the following resources to resellers and suppliers:
Warehouse Network – Suppliers compile their inventories on the Marketplace while Giga Cloud logistics strategically places these same inventories within the Giga Cloud Warehouse Network to avoid high warehouse purchase or rental costs
Integrated Logistics Infrastructure – Track sales, manage purchases, negotiate product pricing and more all on one platform