Created a product. Already working with manufacturing. Need advice on best option for e-commerce site creation, payment processing, and order fulfillment. Should I shop them all individually, find a 3PL, or payment provider that offers free site hosting (but then still need order fulfillment)

by Philconnors221993. Posted on Sep 17, 2020    2    5

I've researched quite a bit. It's all very overwhelming. Any help or advice would be greatly appreciated!


bobsponge68 1

Hey, the last thing I want to do is be self-promotional, but my company made a solution for this exact situation! It provides you 1) your own profile/shop like Shopify 2) puts your products on our marketplace for free exposure like amazon. You keep 99% of sales (our platform has a 1% fee) and get paid instantly via Stripe payment processor. No subscription fee like Shopify, no expensive fees like amazon or others. Please DM if interested. Is it OK to post links in this sub???

budbusines 1

Do not shop them as a combined unit - avoid giving leverage of your business to any one individual.

E-commerce: Square Space or Shopify if reasonable 1-3 year revenue will be less than $1 million. You can do yourself. WooCommerce for larger scale and likely hire it out.

Payment processor: Shopify definitely offers merchant processing, I think Square Space does as well. The rates are a ripoff but it is easy. Once half a point starts to matter to you negotiate with payment processors directly. Only use Cost + pricing, never tiered.

3PL: Avoid at all costs. Absolutely do not use for complicated products that are not perfect. If possible try and ship yourself. The low-volume carrier retail rates suck but 3PL providers will eat that margin anyway. Look into renting a storage unit that allows for working in it.

kippypapa 1

Is the 3PL really that bad? The retail carrier rates are really bad, but how about rates through shipstation or similar? How about Amazon? If FBA is that worth it since it makes it easier for Prime shipping?

budbusines 1

Haha, yes 3PL really is that bad. The only person I know who's ever made money with 3PL services is someone who owns a 3PL warehouse. Unless you have a high margin product or two only, with mass appeal, anticipate immediate high volume orders, and speed to market is critical it is much better to scale slowly with your own fulfillment.

For Amazon sales, yes to FBO. I haven't done it myself but from what I've heard provided the product moves and you can account for inventory carrying costs FBA is worth it. But you still need to manage your inventory and get it to amazon.

  Philconnors221993 1

Thank you for taking the time to type all of that. Makes a lot of sense shopping individually. Time to get to work.