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Introduction

In our previous blogs, we introduced SellerScape’s Order Routing feature and explored Priority based routing. Today, we’ll focus on Lowest Cost Order Routing, a strategy designed to maximize profitability by selecting the most cost-effective vendors.

What is Lowest Cost Order Routing?

Lowest Cost Order Routing aims to minimize your expenses by choosing vendors that offer the best prices. SellerScape takes into account various cost factors, including item prices, shipping costs, and discounts, to ensure that you get the best deal without compromising on quality.

Setting Up Lowest Cost Order Routing

  • Compare Prices: SellerScape compares prices from different vendors, including shipping and dropshipping charges, to identify the lowest cost option.
  • Define Rules: Set rules to determine which charges to include in the cost calculation, such as bulk order discounts or shipping costs.
  • Negative Profit Check: Ensure that the chosen vendor doesn’t lead to negative profits by setting an acceptable threshold.

Advanced Options

  • AI Logic: SellerScape’s AI can identify if fulfilling items from a single vendor would be more customer-friendly and cost-effective, even if it’s not the absolute lowest cost. You can set a margin amount to allow the AI to make this decision.
  • Order Splitting: Decide if order items should be split among vendors to achieve the lowest overall cost.

Benefits of Lowest Cost Order Routing

  • Cost Savings: By choosing the most cost-effective vendors, you can significantly reduce your expenses and increase profitability.
  • Flexibility: Customize the cost calculation rules to fit your business model and optimize your savings.
  • Customer Satisfaction: Lower costs can lead to lower prices for your customers, making your business more competitive.

Conclusion

Lowest Cost Order Routing in SellerScape helps you maximize profitability by intelligently selecting the most cost-effective vendors. By leveraging advanced options and AI logic, you can ensure that your orders are fulfilled efficiently and economically. Stay tuned for our next blog, where we’ll explore Proximity based routing and its benefits.

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