fulfillment center

What Is The Fulfillment Center And Why Is It Important?

While some businesses utilize eCommerce to supplement their brick-and-mortar sales, others sell exclusively online. And they have one thing in common: they both benefit from the fulfillment center. 

What is a fulfillment center?

Fulfillment house or fulfillment center is a current word for a packing warehouse. The words were coined in the mid-1990s, and “fulfillment center” refers to an in-house packaging warehouse, whilst “fulfillment house” refers to businesses that specialize in warehousing and packing for others.

To be more specific, a fulfillment center is where a seller or a company hired by the seller to outsource their fulfillment, such as a third-party logistics (3PL) provider, fulfills customer orders placed through an eCommerce store (also known as direct-to-consumer fulfillment) and/or business-to-retail fulfillment, where the seller fulfills wholesale orders to big-box retailers. It is frequently larger in size and scope than a normal warehouse owned or rented by a single company. 

A fulfillment center’s major job is to handle a seller’s inventory, store it, ship orders directly to customers and/or merchants, and aid sellers in managing the crucial, but often difficult fulfillment process. To be able to handle these jobs, fortunately, we have ConnectPOS, a software with perfect fulfillment support.

Why is the fulfillment center helpful?

A fulfillment center allows you to expand your company in the future. If you’re planning on launching more product lines in the future, fulfillment won’t be as time-consuming. Let’s look over some typical advantages of using it.

Create more room

Many new eCommerce businesses are operating out of basements, attics, garages, and other locations where merchandise and supplies may be stored. These “work rooms” frequently devolve into a jumble of bubble wrap, boxes, and other packaging materials. You may delegate all of these responsibilities to your fulfillment center, allowing you to focus on other vital elements of your business, such as keeping your clients pleased.

Better customer service

It’s true what they say: keeping a client is simpler than finding a new one. According to a research, businesses might lose as much as $62 billion every year owing to bad customer service. With so many competing items on the market today, customer service is frequently one method for small businesses to stand out.

Many fulfillment facilities provide email or phone service 24 hours a day, seven days a week, making returns, exchanges, and refunds simple. Not only that, fulfillment centers are better equipped to offer same-day delivery or delivery dates that are assured. All of this contributes to a better client experience.

Reduce Your Shipping Fees

Many fulfillment centers have a network of national and international facilities, allowing them to offer bulk shipping discounts to your company. Furthermore, UPS and FedEx generally base their delivery charges on zones. As a result, if you store items in many fulfillment centers, there are fewer zones to cross to deliver your products to your clients, which saves you money. This allows you to pass on savings to customers or even provide free delivery, which more than half of American consumers believe impacts their online purchasing decisions.

Conclusion

Fulfillment centers can make it easier to keep track of orders and let managers know about the tracking information. To know more about this aspect, call us immediately to find out the best solution for your business.

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About the Author

Ariel Dg

Ariel Dg

A Content Contributor at ConnectPOS - the POS system that interfaces directly with leading eCommerce platforms!

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