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Warehousing and Fulfillment Center Services
Fulfillment home and fulfillment center are now modern terms for a shipping warehouse. The terms have been coined at the end of the mid 1990s, and "fullfillment home" is most often used about an in-store packing operation. Most commonly seen in the food industry, these centers pack all products for delivery to the customer once they are paid for. This saves a company thousands of man hours and dollars each year. The term fulfillment center was first used in an attempt to capitalize on the already established freight forwarders.

While a warehouse is simply a location where products are packed and shipped to their final destination, it also includes all of the machinery and supplies used to pack and ship the packages. Typically the warehouse will hold millions of packages, and contain packaging equipment ranging from multiple types of boxes, full color printers and packing machines, and even sophisticated electronics designed to ensure that all packages arrive safely and on time. Depending on the type of business a fulfillment center services, the warehouse can hold one or thousands of products.

If a customer places an order online, and the order is for thousands of dollars worth of goods, the fulfillment center will sort through the huge stack of inventory to find the ones customers want and place them in different warehouses around the country or world. Once the merchandise is stored in the warehouse, it is sent to stores for the final stage of shipping. If the order is for less than $10, the warehouse will do the packaging and shipping for the store.

Fulfillment centers aren't just for large e-commerce companies. They are also used by many small companies and home businesses. Smaller warehouses will allow merchants to provide fast delivery to their customers, and keep track of inventory without having to hire a large amount of employees. Because these businesses don't have as much overhead, they can afford to provide faster delivery times and reduce the number of employees needed to handle their shipments.

Some e-commerce stores rely on fulfillment services to help them maintain accurate inventories of their products. Other stores use fulfillment centers simply to keep track of their shipments. For example, toy stores may order toys from a wholesaler and then have them directly packed and shipped to the store. The retailer sends an email or a text message to the fulfillment center on their behalf with a photo attachment of the item being shipped. The company then sorts out the orders and deals with them depending on whether or not the customer wants the product immediately or has until the next day to place an order.

Online stores sometimes use fulfillment centers to separate and manage their own store inventory. For example, if an e-commerce website sells products by name and doesn't carry any inventory, the website owner might set up a virtual terminal at a fulfillment center to collect sales tax and shipping information. From there, the terminal will process the orders as they come in and will notify the e-store owner about any returns and how much the store needs to order next.

In addition to handling online orders, a fulfillment center can also be used to distribute goods to customers. For example, if a business sells printed T-shirts, the business owner could arrange to have a distribution center deliver the T-shirts to customers when they purchase them. Likewise, if the business sells apparels, the business could arrange to have its own fulfillment center deliver the items to the customer's door. In either case, a third party will handle the return of the items, which is often used interchangeably with the distribution center. Both services are used to increase profits because each service helps the business increase its profit margin.

A fulfillment center might also be used to keep track of the inventory of an e-commerce website. This would allow the owner of the website to order the extra products it needs with confidence, knowing that the warehouse might be fully stocked. In this case, the fulfillment center would act as a link between the website and the customer. The owner of the website can simply look at the inventory of the warehousing company and make sure the extra products ordered are available before the website orders them. Alternatively, the website owner might simply look for products to order from the fulfillment center directly. Either way, the e-commerce website owner need only pay a small fee to the fulfillment center and gain a safe, reliable place to store and handle all of its extra products.
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