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Fulfilment Centers 101
24 Nov, 2022

Let’s keep this short and sweet.

 

If you are selling your product and packing up boxes from your house or garage and driving everything to the post office, that’s fulfillment.

 

If you have a small shop and are using every corner to store inventory and paying someone to pack orders and ship them, that’s fulfillment.

 

Immediately with a fulfillment center:

  • • You don’t have to pick/pack boxes, load your car and rush to the post office
  • • You don’t use your house as a storage facility
  • • You free up time to work on your business, makes sales and improve customer service
  • • No need to rent space or hire warehouse staff

 

And passively:

  • • You benefit from their fulfillment experience
  • • Expand your reach
  • • Lower shipping costs
  • • Improve delivery times
  • • Lower overhead costs
  • • Improve scalability and focus

 

What can you expect from a fulfillment center:

  • • Receiving inventory
  • • Generating pick lists and picking products
  • • Kitting and assembling items
  • • Packing boxes
  • • Labeling shipments
  • • Shipping orders
  • • Managing returns

 

And what would you expect to pay for these services?

To keep this simple, the rate depends on the volume, number of SKUs, dimensions, and complexity of your orders. A standard operation would be 1000+ orders per month of a parcel the size of a shoe box with 2-3 items per box.

 

What you’d expect to pay is the receiving/handling of your inventory, the storage/management, pick/pick and kitting, and shipping.

 

That’s the short and sweet on fulfillment, and is by no means an exhaustive list, but a great introduction to help you understand if you’re ready for an upgrade!