Success during economy crisis?
Have you ever thought about Amazon, its great success even during the economy crisis? If you already have tried doing your own eCommerce business with products that amazon offers, you certainly asked yourself “How in a world can they have so low prices?” Sometimes, when you contact directly the Chinese suppliers, they will offer you a higher price that Amazon has. How is that possible? And more! Amazon has free shipping for many of their products. If you start a fresh new company, you can never beat their shipping prices.
Why is all this happening?
The answer is volume! In fact very high volume of the products they sell. You can try to check by yourself. Find any supplier and them about the price for any product if you order 10 pieces or 10,000 pieces a month. The same try with packaging materials, cartons, labels, etc.
Consider packaging materials and shipping. If you order high volumes, you can save 50% of the costs what would a small customer has. This is why fulfillment services are so successful. For your small company it is not a good solution to rent a warehouse, than hire a person who will do the packing and order the packing materials yourself.
If you own a fulfillment service, you have much better position to negotiate the price with USPS or UPS. And this is your advantage over the competition - and the price is also the cause why small e-shop business will search for your services.
Similar rules work for SEO and SEO services. There are tens of similar services on the market. Some of them allows you to use them with no restrictions, but you have to pay $100-$500 per month. Otherwise you will not get the full functionality. If you run a small eCommerce business, you can never afford such services. And your SEO and marketing will suffer just because of lack of the valuable information. “Volume” is again the reason why would always advice to hire professionals instead of doing everything by yourself - 1st you have no time to learn it all, 2nd you cannot even afford everything necessary.
Our company offers the solution! We can share the analysis tools among several customers, so the corresponding price for each of the customers is significantly lower. Also, we can hire and educate workers - we can afford to invest money into the training. Sometimes it takes several weeks to find the right person, but for urgent jobs it can be too much. Moreover, a bad worker can do more damage than profit.
Our advice for your business is to definitelly hire the professionals and require complete explanation about what they do, so you will know what you pay for. And then, you can simply do the math for you and you will clearly see that you will not be able to accomplish these task with the same price.