Tips For Operating a Non-inventory eCommerce Business


One of the biggest challenges for business owners is handling inventory. With e-commerce, the challenge remains. What to do with inventory, and how to manage all the transactional details of selling online? This is where the advantages of a U.S.-based distribution and fulfillment warehouse come into play.

Tips For Operating a Non-inventory e-Commerce Business

Operating a non-inventory e-commerce business can be very lucrative. When you outsource the distribution and fulfillment of products, along with other services, the time and cost savings for the owner are significant. Essentially, utilizing a U.S.-based distribution and fulfillment warehouse makes it possible for a business owner to manage a very large operation single-handedly if desired. That means that the barrier-to-entry is removed, and anyone has the potential to be highly successful in e-commerce. Still, certain strategies can increase the likelihood of success. They are:

Examine Merchandise Before Adding to Product Line

The number one mistake that e-commerce business owners make is not ensuring the quality of the products they sell. Even though you don’t need to stock inventory, you should still have at least one sample sent to your own location so that you can confirm the item’s description, functionality, and quality. If the product meets your standards, then you can safely have large quantities shipped to your U.S.- based warehouse.

Get White Label Shipping

You never want your customers to second guess their choice to buy from you or to have the information to directly connect with your suppliers. Protect your e-commerce branding by making sure you get white label shipping from your distributor. You want your business name on all the shipping and packaging materials, not the name of the warehouse or your wholesaler.

Offer a Generous Return Policy

These days, consumers are far more comfortable ordering merchandise that they haven’t seen or touched in person. While that’s good for e-commerce business owners, it also adds a challenge. Because of this “buyer handicap,” buyers feel much more entitled to complain about products online if they feel that they’ve been “tricked” out of their money. To make matters worse, if your business receives a higher than a normal number of bad online reviews on selling platforms like Amazon, your seller account could be banned. Even your payment processor could take notice and suspend your account pending investigation into your business practices. To ensure a high level of customer satisfaction, you should offer a generous return policy. Let customers have plenty of time to inspect their purchase and, if they want to return, consider offering free returns. When you work with a U.S.-based distribution and fulfillment warehouse that handles returns, it’s convenient for you. And the extra cost is well worth the protection of your business reputation.

It is precisely because of these costly and complex details that many online retailers have sought to run e-commerce businesses in a manner where they don’t have to handle inventory. American Warehouse, Inc. makes e-commerce much easier for the business owner. Get started today by contacting us.