The fulfillment process is a major part of eCommerce. It is the last stage of the order process before the customer receives their product. Let's explore how fulfillment strategies can be used to optimize your eCommerce business. We will also discuss how fulfillment warehouses and logistics are changing with time and what strategies can be used to overcome these changes. While a majority of companies have their own e-commerce store, a growing number of those companies are outsourcing their order fulfillment centers to third-party suppliers. Outsourcing has been around since the 1980s, but it has only been in recent years that it has been economically feasible for small to medium-sized businesses.
The Backbone of eCommerce Fulfillment
Understanding that fulfillment is the most critical part of any eCommerce strategy. The warehouse and logistics are the backbone of any eCommerce business, and are the key to its success.
The fulfillment process starts with the order being placed on the website. After that, it goes to the warehouse where it is processed and sent out for delivery.
There are two types of fulfillment strategies: drop-shipping and inventory-based fulfillment. In drop-shipping, retailers don't keep any inventory in their own warehouses, while in inventory-based fulfillment they do.
Understanding the difference between these two strategies is key for your success.
There are 3 main types of eCommerce fulfillment centers, and they differ in the way they store products.
The first type is a warehouse that stores a lot of different products and uses robots to move them around. This type of warehouse is usually used by larger companies that need to store a large number of products.
The second type is an order fulfillment center, which stores only the products that have been ordered by customers. This type of warehouse is usually used by smaller companies or businesses that sell different types of items.
The third type is a drop ship fulfillment center, which stores only the items from one specific company and ships them directly to the customer when they are ordered. This type can be used by small businesses with just one product or large companies with many different products.
Although there is no right or wrong strategy to approach the quest for your ideal fulfillment center. There are however many ways to choose the absolute wrong fulfillment center. Reach out to our team today to find out more about what we do and how we can help you find the right solution to your eCommerce fulfillment needs.