How Can Fulfillment Center Help Your Business Grow?

A fulfillment center is a physical location that fulfills orders placed by eCommerce retailers. Consider the typical order fulfillment process of a small- to medium-sized online company.

An ideal fulfillment center for small businesses gives them the opportunity to scale their business operations without investing in overhead like warehouse space and employees. The logistics provider will store, pick, package, and ship the products from the fulfillment center, and most manage returns as well.

Image Source: Google

You gather the items purchased from your inventory and package them. Then you hand them over to the shipping company for delivery. You could spend most of the time packaging shipments and delivering them, depending on how successful your business is.

There is a greater chance of errors in shipping and picking products if you have more orders. You might make costly errors if you try to manage your inventory by yourself. This could lead to multiple back-orders, which can make your customers unhappy.

Let's now look at what this might look like if you decide to use a fulfillment center.

The information of a customer who places an order is sent to a 3PL provider. Your inventory is already stored at the fulfillment center so they can take your order, collect the items and pack them.

The order is then transferred to a shipping company for delivery to the customer. The process is the same, but it relieves you of the responsibility and often allows for faster and more efficient delivery.