As a business gets bigger, the owner, workers and enthusiastic helpers typically spend much time doing the following:
> Managing inventory
> Receiving shipments
> Repacking products to deliver to customers
Time consumed by onsite inventory is time grabbed from marketing and sales activities. It also puts the spotlight on an unmistakable business issue: having to outsource particular business tasks, including fulfillment.
Business owners who work away from home likely don't have piled of products kept in their homes. However, they have lots of reasons to need off-site inventory:
> They want to be freed from disorganized and inexact inventory.
> They want to simplify the fulfillment process by building up logistics and online ordering functions.
> They want to concentrate more on sales instead of warehouse and fulfillment.
> They want to undertake a direct marketing campaign, but have inadequate space to get it done.
> They want to save employee and overhead costs.
So what exactly is a fulfillment house?
You have choices to tackle your inventory management challenges. No, they don't include moving everything to a self-storage facility or finding unused space to rent. The smarter solution is using a fulfillment service.
The terms, fulfillment provider, fulfillment service and fulfillment company, are interchangeably used very often.
As soon as a ecommerce shipping company receives an order, the fulfillment house is accountable for taking that product to the customer.
Fulfillment can include customer credit card processing, updating website inventory, product reorders and returns and even call center support.
Let's say you got an order for ten products on your e-store. You let the fulfillment company by calling or emailing them, and that is your part of the process. The fulfillment company picks up the items from the warehouse, packs them up and calls the shipper and customer.
If a business is already working with partners - for instance, a hosting company - the fulfillment company's tasks may be different. A small business owner may handle the internal work himself or work with a hosting company that takes credit card information. If you want to read more about fulfillment services, you can go to https://www.youtube.com/watch?v=cs-iEYsAldI.
The fulfillment company will then would do product picks-and-packs, gives customer support and take care of the returned items, go here for more info!
Using an order fulfillment service lets a business take care of small orders or none at all. A business that wants to handle small orders needs to hire a package delivery service and retain some inventory on hand.
Choosing a Fulfillment House
There are plenty of other things you should consider in ensuring that you end up with a quality fulfillment company -error rate, response time, overall reputation, etc.
The long and short of it is you need to do your homework. With the huge number of fulfillment service providers these days, not to mention there are many cowboys in the industry, it would be downright foolish to choose indiscriminately.