article thumbnail

The Complete Comparison Guide Between Your 3 Ecommerce Fulfillment Options: Drop-Shipping, 3PL or Self-Fulfillment

BigCommerce

While small businesses can often manage their inventory , packing, and shipping , as the operation scales up, additional support is needed and beneficial. In this guide, we’ll walk through everything you need to know about three of the most popular strategies: Drop-shipping. Order management. Customer communication. Self-fulfillment.

Drop Ship 417
article thumbnail

When and How to Charge Sales Tax on Shipping

BigCommerce

As an online seller, chances are good that you charge your customers for shipping or delivery fees at least some of the time. In the US, this can present a challenge because some US states require that retailers charge sales tax on shipping charges, while other states do not. Sales Tax and Shipping: Laws and Regulations.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Product Substitution: How Savvy Retailers and Manufacturers can Build Supply Chain Resiliency, Reduce Costs and Improve Customer Experiences

Retail TouchPoints

Shipping delays and stockouts lead to frustration and disappointment, especially when logistical problems impact time-sensitive purchases, such as special occasion gifts, event tickets or prescription medications. When customers place ecommerce orders, the last thing they want is an unhappy surprise.

article thumbnail

How to Optimize Your Business’ Contribution Margin Ratio

Kissmetrics

Understanding the finances behind your business can help you increase your profits, cut back on expenses, and operate more smoothly. A contribution margin ratio is the difference between sales and variable costs within a company. The difference will then get used for fixed costs, like rent and insurance.

article thumbnail

How to Create, Setup and Launch a Profitable Online Store (Seriously)

BigCommerce

Reference Chapter 1 for a breakdown with examples of how other entrepreneurs found niche success. Sure, you might be able to sell your item for much less than the competition, but will shipping costs obliterate your margins? Reference chapter 2 for more information. Reference chapter 4 for more detail.

article thumbnail

How to Reduce E-Commerce Overhead

Kissmetrics

While online stores tend to have fewer expenses, e-commerce overhead can quickly add up. As a business owner, you should always be looking for ways to cut costs. Which costs can you forgo, and which do you need? Let’s look at the most effective ways to reduce your online store costs. Fixed Overhead Costs.

eCommerce 275
article thumbnail

How to Make Money by Requiring a Minimum Order Quantity (MOQ)

Kissmetrics

In this post, you’ll learn what an MOQ is, how to set one that won’t make your customers run for the hills, and how to use the strategy to increase your profits and reduce your expenses. An MOQ refers to the minimum amount someone can order from a business. On average, your phone cases take one week to produce and ship.