What is a fulfillment center?

What is a fulfillment center?

What is a fulfillment center?
Noya Zwebner
May 22
10 min

A fulfillment center serves as a local hub for eCommerce businesses to manage and operate their business logistics. A fulfillment center oversees the logistical operations involved in delivering a product from the seller to the customer. From receiving the order to picking and packing the item, then arranging shipment and dispatching it, a fulfillment center takes care of all of this for you. 

ECommerce businesses looking for ways to simplify their operations can partner up with a third-party logistic provider (3PL). 3PL providers, such as ehouse, handle customer orders by receiving, process, and fulfilling them. When working with a fulfillment center, your inventory is stored inside the logistical center’s warehouse to be readily available once an order is made and then picked, packed, and labeled for shipment. By leaving this part of running your online store up to eCommerce logistics experts, you can put your free time and effort into other aspects of running a business, such as developing an eCommerce strategy, customer service and developing business development.  

Fulfillment centers handle both B2B and B2C orders, from high-volume products sent to big-box retailers to individual orders shipped directly to customers' homes, and have many essential functions that contribute to your business’s supply chain. One of the most crucial roles is ensuring your customer’s order is delivered on time.  This isn’t only important when it comes to a positive customer experience. Timely delivery has a significant impact on your business’s reputation and the growth of your eCommerce store. That said, knowing how to handle orders and ensuring they are sent out on time can take time and experience to master. Therefore, eliminating the burden of managing this process by outsourcing it to a fulfillment center can greatly benefit your business.

Another benefit of working with a fulfillment center is your ability to improve your inventory management. By outsourcing your inventory management, you can avoid situations where you are over-stocking and have excess inventory lying around and collecting dust or understocked and not meeting customer demands. When outsourcing your warehousing and shipping to fulfillment centers, you will also relieve yourself of needing to rent and manage a physical space to store all products. By freeing yourself of these responsibilities, you will solve common inventory management issues such as overselling, mispicks, mishaps, and damaged items.

If and when you decide to go forward with a fulfillment center, it's important to confirm that they can integrate their software with yours. Software integration allows both sides to have visibility into inventory management and supply chain processes. In addition, it is vital for more accurate financial reporting, optimized stock levels, and data management and forecasting automation.

Common types of fulfillment centers

In-House Fulfillment Centers: These are fulfillment centers that are operated by the retailer that sells the products and manages all aspects of order fulfillment, including inventory management, order picking, packaging, and shipping.

  • Third-Party Fulfillment Centers: These are fulfillment centers that are run by third-party logistics (3PL) providers, such as ehouse. The 3PL provider manages all aspects of order fulfillment on behalf of the retailer that sells the products. The eCommerce store sends its inventory to the 3PL's warehouse, and the 3PL takes care of everything from order processing, picking, packing to shipping.
  • Crowdfunding Fulfillment Centers: These are fulfillment centers that specialize in fulfilling orders for crowdfunding campaigns. These campaigns typically involve raising funds to bring a new product to market, and the fulfillment center takes care of all aspects of order fulfillment once the product is ready to ship.
  • Multi-Channel Fulfillment Centers: These are fulfillment centers that integrate with multiple sales channels, such as Amazon, eBay, and Shopify. They allow companies to sell products across multiple platforms while managing all aspects of order fulfillment from a single location.
  • Direct-to-Consumer Fulfillment Centers: These are fulfillment centers that specialize in shipping products directly to consumers. They often offer services such as same-day shipping, customized packaging, and advanced tracking and delivery options.

Each type of fulfillment center has its own unique features and benefits, and choosing the right one for your business depends on your specific needs and goals.

Ehouse fulfillment solutions 

If you're an eCommerce business owner looking for a reliable third-party logistics provider, then ehouse may be the solution your business needs. We are an international fulfillment center that offers a range of services to help you manage your inventory and streamline your order processing. From picking and packing your products to labeling and shipping them off, ehouse has got you covered. With our expertise and state-of-the-art technology, you can rest assured that your customers will receive their orders on time and in perfect condition. So don't hesitate to contact us today and take your eCommerce business to the next level.

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