If you are running an online fulfilment centre will help you to get your products into the hands of customers as quickly and efficiently as possible. Fulfillment centers are warehouses that handle warehousing, packing and shipping for ecommerce vendors. They help reduce the burden of logistics processes on ecommerce businesses and allow them to focus on their marketing and strategic plans.
How do fulfilment Centres make money?
While small eCommerce startups may be able to manage their ecommerce order fulfillment in-house, as they grow, it becomes increasingly difficult and expensive. Managing a warehouse, hiring employees to pack orders and buy the necessary supplies for shipping can quickly eat into profits, especially when sales increase unexpectedly or during peak seasons.
By outsourcing to a 3PL provider, a merchant can eliminate the costly overhead of warehouse space and equipment, employee wages, worker’s compensation and insurance premiums, and packaging costs. Pricing for fulfillment services will vary from provider to provider, with some charging a flat fee and others adding fees per service used.
When choosing an online fulfillment centre, look for a partner with consistent communication and full integration with your ecommerce system. It’s important that you trust the company handling your goods and shipping to the customers you have worked hard to build relationships with, so it is important that they are transparent in all their activities. The best 3PL providers will update you constantly on the progress of your orders and provide real-time inventory updates.