Cost Reduction · Costs

Which is more cost effective for ecommerce business?


May 31st, 2021

I'm selling home decor items sourced from Morocco to the US. Shipping is the main cost concern as sometimes it costs more than the item itself. Is it more cost effective to start manufacturing the items myself, warehousing them in the US and selling from here?

Aria Consulting Clear, Practical, Solutions in Action

May 31st, 2021

Well, the first thing that happens then is you lose the customers that are buying because it's from Morocco. And I suspect the shipping costs you're experiencing are likely due to low volume orders. You could probably get lowered rates if you order more volume. But, that obviously means you then have to warehouse that inventory. And finance it of course.

Secondly, it is unlikely that you could find enough qualified workers at low enough costs onshore to make a material difference in your total costs.

Chando saidi Chishimba Human Resources Manager /Project Management/ Africa Resources Research Manager

May 31st, 2021

With the right resources and materials manufacturing would be a good option and cost effective.

Talk to your Morocon suppliers and propose on being a franchisee ,this will allow you to keep your customers and businesse in good condition.

Vikalpa Nepal Cofounder

June 1st, 2021

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