A Review of the Best eCommerce Logistics Suppliers
Friday, May 23, 2014
We started SemiconductorStore.com and Innovation Marketplace with the goal of offering our customers marketing and logistics expertise and service. Many of our customers often ask us who else is in this business, and what their capabilities are.
We have found that there is an increasing number of startup companies creating exciting and innovative products at a very fast pace, and they need a logistics and marketing partner to handle that side of the business proposition. We understand the important value this service brings to our customers. They have this new and unheard-of product that they have worked hard to develop, and now they need a partner to help them get the word out to the world. This logistics and marketing process must be executed on a consistent basis at a cost that enables the customer to maintain profitability and growth.
In our experience we have found that there are some key differences in the top logistics suppliers that you should consider as you do your homework when picking a logistics partner. We have studied a few of the top companies like Shipwire, Amazon, and Shopify, and compared their services. We hope this provides a good review of what you can expect from these logistic companies and what alternative choices you have available to you.
Amazon vs Shipwire vs Shopify: A Look at What These Suppliers Do for Their Clients
Shipwire: The positives for this company are that they can ship internationally, have numerous warehouses across the globe, and can process returns. They also give you multiple e-commerce platforms to choose from. They will brand your product name on the shipment and site and accept your collateral data. All of these are very strong performance incentives. On the reverse side, they charge service, storage, and handling fees; do not offer their own order capture or payment system; and require you to pre-pay into your account to service your business transactions.
Amazon: On the plus side, they will ship anywhere in the world from their stocking locations. “Prime” customers get free 2 day shipping. Amazon handles all returns, but they deduct all expenses automatically from your bill. Obviously Amazon has loads of credibility, so you’re dealing with a major brand with lots of web traffic. They also give you the option of many different programs to choose from. On the flip side, they will not stock or list your products unless you have them barcoded. They will not brand your product or put your name on the box. Amazon also takes a 15% referral fee on all transactions and they do not ship overseas.
Shopify: Shopify offers free web hosting with any of their plans, and the system can integrate with other payment terminals. Unfortunately, they charge a monthly fee, plus a per transaction fee of between 2.15% and 2.9% + $0.30, and are really only a storefront. Shipping is taken care of either manually or through third-party carriers or fulfillment services; Shopify will neither store nor ship your products.
An Alternative Option for Your Logistics Needs
The three companies reviewed above can provide for a wide array of logistics needs in the marketplace – but they’re not the best solution for everyone. Customers come to us when they feel they need a true “one-stop” resource for all of their logistics support and the big guys may be out of their budget range. Additionally, we specialize in technology; if your product relates to electronics, we have the knowledge and experience to support you and your customers.
SemiconductorStore.com and Innovation Marketplace have a shopping cart, accept credit card sales, and handle all billing and credit issues. We offer free storage, will ship your product anywhere in the world, “brand” your product when it leaves our warehouse, and handle logistics. We agree on a pricing structure in advance and send you the money as we ship your product each month. We market and actively promote your product via the website and report all activities to you on a monthly basis for no fee.
If you are looking for eCommerce logistical support and would like an honest assessment of how we stack up against the big guys, give us a call at (310) 536-6190, or contact us online.