Most companies ask “What are my costs to have e-commerce and fulfillment in the United States?” The answer is very simple, it is very inexpensive if you look in the right place!

Location of your fulfillment is key

Most foreign firms look to markets like New York, Chicago, and Los Angeles to handle their fulfillment but there are great places outside of these areas that can provide great fulfillment options and inexpensive labor and warehousing costs. Three markets are a great example; Central Florida, Austin, Texas, and Phoenix, Arizona.  Let us focus on Central Florida for three very important reasons; cost, efficiency, and location.

Cost of Fulfillment in Florida

Florida has one of the lowest tax environments in the country. There is no personal income tax and the corporate tax is very low, as a foreign company importing to Florida you would not have to worry about extreme labor costs per hour for fulfillment and you will not have to worry about large overhead costs for your fulfillment center.

Efficiency and Consumption

Florida is a natural service industry and consumption state.  There are over 100 million visitors to the State of Florida each year, this influx of visitors means those visitors need products and services on their visit, they do not usually come with provisions enough for a 10 day stay, they need food, consumables, products, and gifts to take back to relatives.

Location 

The supply chain in Florida is very well routed with 4 major highways crossing the state goods can be shipped to anywhere within the state in an 8 hour period. Also the access to other Latin American markets through the major ports of Jacksonville, Miami and Tampa make it an ideal gateway hub for your products waiting to enter those markets.

Lastly we want to mention pricing. Pricing for e commerce is typically on a per sku basis. Most companies that will handle your products will charge between $2-5 per product and between $2-8 per order depending on the number of SKU’s in the order package.  This price (handling) is almost always separate from the (shipping) price. Talk to our specialists about pricing per sku or pricing per package this could save you money.

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