Don't Do What I Did: A Short Story on a Big Mistake.
Leena Chitnis
2 replies
Learn from my mistake, makers of physical product! I thought having a 3PL (fulfillment center) to fulfill my orders would create efficiencies that I would not be able to achieve on my own. I went with Shipbob, and encountered nothing but problems. Customers got the wrong pet bed size and color, some of them multiple times. Some of my inventory went missing. Returned items that were supposed to be quarantined weren't. Those that were quarantined were disposed of without my permission, even though I specified I did not want disposal in my onboarding paperwork. On top of this, I was being charged $1600/month for warehousing, with attendant pick/pack fees and more.
My solution: move out of California and rent a large house in Arizona. Right now I'm paying $3k for a somewhat decent apartment in Silicon Valley, for around 978 sq feet. In Arizona, I can rent a whole beautiful house for $2k, and get 400 more square feet, garage, and yard! This is where I plan to move my pet beds as well, and fulfill them myself. I'd be saving at least $2600/month. And there would be NO errors since I know what I'd be doing.
Moral of the story: if you can, have your inventory moved into your house. - maybe into the garage and/or a spare bedroom. Go with UPS or USPS to fulfill your orders. You'll save thousands and will also ensure that far fewer mistakes occur. Fulfilling your own orders will, ironically, save you time and money.
Replies
Nic Neon@glenfish
FreezeKeys
Hi Leena,
this is a great outcome and I think one of the biggest benefits is now you're not living in California, land of the lawless and overtaxed.
I can say without a doubt, at a certain level of fulfillment, this is the way to go.
I have run two businesses that shipped physical products and your experience in many ways mirrored mine. I did at one point have a very professional shipper out of Ohio that specialized in books (our product at that time) and they did a wonderful job but very very expensive and not something that we could sustain unfortunately.
My other situation was dropshipping perfumes and colognes and it was a complete mess.
Always start by shipping it yourself, i would agree :) Thanks for the post Leena and best of success to you and your business.
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