Shipping from where? Italy?

Posted by PLM on

Yes, several products ship from Europe including Italy. I'm a money man, always calculating, planning and researching.

For example a pair of shoes I buy from Versace for $100, I order 50 of them and have them shipped to MN, stored, packaged and shipped:

  • International freight: $1,500 or $30 per pair of shoes
  • Warehousing - classic one in my area $50 per sq ft as I need 5 sq ft for my shoes -  that's $5 per pair of shoes if they all sell within one month
  • Packing - about $3 per order
  • Shipping an average of $7 per order
  • Pay and employee to store, manage the stock, pack and ship - about $5 per order

For a grand total of $50 per pair of shoes, on top of the $100 purchase price - that a CoG (Cost of Goods) of $150.

Now if I negotiate with the manufacturer or the foreign wholesaler to keep my shoes in their warehouse and ship them with DLH (about $15 per pair of shoes) to my customer my CoG is $115.

That's $35 cheaper than trying to do everything myself! Meaning cheaper products for my customers.

I understand your worries about shipping time from Italy. The Versace orders placed on Monday arrive on Thursday at worse. One of the last one placed on My Small Store was placed on a Thursday after 4pm, the tracking was issued on Friday morning and the bag arrived on Monday afternoon. 

Shipping from extended smart warehouses saves you money, lots of it.

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