What does the warehouse and fulfillment services do?

The terms warehousing and fulfillment services (or distribution centre) are often used interchangeably but can have very different meanings. Both are large buildings with inventory for goods-selling industries; However, the cases of use and the services provided are often quite different. Let’s break down each option to better understand ​​the best eCommerce shipping solution for your business.

When we talk about warehouse fulfillment, we talk about a company that stores products for a long time. A warehouse is a large storage centre or industrial space designed to hold inventory in bulk. You will see devices like forklifts and containers, in which the shelves will be high and will store large quantities of products.

There are business-oriented warehousing providers that primarily place large quantities of bulk or B2B eCommerce orders. Some large retailers will have their warehouse store additional inventory, while others will rent space in a warehouse with eCommerce businesses.

Leasing warehouse space is generally more effective for small to medium-sized retailers, although prices depend on available lease terms. Due to the expansion of warehouses and high demand for construction, many logistics warehouse tenants expect to see a 10% increase starting in 2021.

Some small e-commerce sellers may choose to rent a more cost-effective space, such as a local locker or inventory storage unit if the home does not have space. This way, they keep a little inventory on hand and get more when less.

What is a fulfillment centre?

The fulfillment centre is the physical location from which third-party logistics (3PL) providers (also known as fulfillment providers) fulfil customer orders for eCommerce retailers. A fulfillment centre exists to help customers receive timely orders online and free e-commerce companies from managing this crucial-yet-cumbersome process.

How does fulfillment centres work?

The operation of the fulfillment services involves the task of helping to deliver online orders to your home – also known as the order fulfillment process. The inventory of the eCommerce business is strategically stored in the fulfillment centre of 3PL in preparation for fulfilling the customer’s order. After the buyer completes the purchase at the e-merchant store, the inventory is selected, and the packs are packed, then labelled for shipment.

Source: What does the warehouse and fulfillment services do?