Fulfillment services offer not just top-flight logistics services and customer service possibilities, but thanks to their business model fulfillment service providers can give their clients state of the art warehousing, pallet storage, cold storage, and warehouse logistics services as part of their partnership agreement. Fulfillment service providers can give their clients the best warehousing imaginable, letting the client focus their attention at building their business’ “front end” storefront and catalog diversities.
The process of third-party fulfillment provider warehousing
The warehouse employed by the third-party fulfillment service provider doesn’t need to be close to the ecommerce business client’s own offices. In fact, the two can be any distance apart and conduct business remotely. The ecommerce client, once the fulfillment service agreement has been finalized, relinquishes all warehousing and storage fulfillment responsibilities to the third party fulfillment provider. The fulfillment provider then oversees all warehouse and inventory management needs for the ecommerce company, becoming in effect the sub-contracted warehouse department for its client.
Deliveries to the fulfillment service provider
The fulfillment service provider and its ecommerce client arrange for all deliveries to be made directly from the manufacturer to the fulfillment service provider’s warehouse facilities once their business partnership has gone into effect. This means the ecommerce client need never have to deal with their own inventory. Such a proposition can seem daunting at first – fraught with a kind of business-style separation anxiety – but the benefits far outweigh the disadvantages, which are actually quite negligible for a variety of reasons.
A fulfillment provider’s success mirrors the client’s own.
Third party fulfillment providers have a powerful and vested interest in their ecommerce partners’ ongoing growth and development. Because most fulfillment service provider organizations take their profit per unit of merchandise sold, the fulfillment service provider needs to see their ecommerce client move more inventory to realize greater profits. The more a business grows, the more the fulfillment service provider will be able to realize via the percentages recovered from each sale.
Fulfillment providers assume the cost, problems associated with logistics
Logistics is a term that most people don’t understand, let alone grasp it complexities and nuances. But fulfillment service providers specialize in logistics management, meaning businesses that partner with them have the freedom to not worry about all the many unfortunate circumstances that logistics management routinely avoids or contains. The ecommerce business can concentrate on customer service and product line development instead.