November 28, 2021

What is a Fulfillment Center: Pros, Cons and Difference with a Warehouse

So, you want to open an ecommerce store. You're thinking about what products to sell and where will they be stored until it's time for them to go into the mail? If this sounds like you, then read on because I'm going to tell you all about fulfillment centers! A warehouse is a great place if your business sells large items or high-volume products (like office supplies), but not so much for smaller items like clothing or shoes. If that sounds like your game plan, then a fulfillment center may be the better option. Read on and find out more!

What Is A Fulfillment Center?

A fulfillment center is a third part logic (3pl) warehouse. A fulfillment center is a physical area that fulfills customer orders from eCommerce stores where incoming orders are obtained, processed, and filled. To manage inventory with an outsourced fulfillment house, the seller can receive and review goods previously to deliver them to the success center or have them sent to the warehouse directly from the manufacturer.

When a client places an order, you accumulate the purchased items from your stock, package them up, and give them over to a delivery provider for shipping to the customer. Depending on how successful your business is, you can spend most of the while packing up shipments and handing them over to the precise delivery carrier. The more orders you get, the better the risk for mistakes in choosing and transporting merchandise. If you are trying to manage your inventory yourself, you might make mistakes, and you can unhappy your customers.  

If you have chosen 3pl or fulfillment centers, when a customer places an order, the information is forwarded to a 3pl company or fulfillment center. The center already has your inventory in storage, so they take the order, accumulate the purchased objects, and bundle them. The order is then handed over to a shipping provider for delivery to the purchaser. It is identical, but it takes the burden off your shoulders, and, in many cases, the work is done quickly.

Benefits Of Fulfillment Center

Outsourcing order fulfillment has many benefits: lower shipping prices, reduced working expenses, and broader attainment to help you develop into new markets. And working with third-party logistics allows you to recognize other elements of your business and keep growing.

Lower Transport Cost

Transport costs are a massive fee for online shops. Because shipping rates are driven by using order quantity, working with a 3rd party logistic eCommerce, achievement partner can give you access to much lower rates. Maximum providers will assist you in piggybacking on their fees; because of this, you will benefit from the collective transport extent of the complete warehouse. Outsourcing success additionally offers you extra energy about packing and shipping materials.

Quick Delivery

If you manage your fulfillment yourself, the possibilities are it is done from an area that is handy for you. But, probabilities are also proper that your facility is not in an area that offers the most acceptable cost and transit times to your clients. By using fulfillment centers, you can quickly deliver your products.

Less Cost

When you run your very own warehouse operation, each rate is yours. While you operate a third party, many fees turn out to be shared among all of the customers using the power – including exertions, hire, gadget, utilities, and different overhead. Plus, you save yourself from the duty of hiring and other warehouse problems.

Better Inventory Management

A well-known order fulfillment center may have the industry leadership, experience, and technology to make your commercial enterprise run better. This consists of seamless integration with your income channels and different control tools that optimize responsibilities like provider choice and inventory optimization.

Excellent Customer Support

Customer support and returns take up a large amount of your energy and time. But while operating with a 3rd-party, they provide customer support and an easy returns method. Meaning you get stepped forward customer service and a higher opposite logistics operation.

Modern Technology To Grow Business

Many fulfillment agencies use modern technology to process and deliver your products to the customers. If you choose a 3pl or fulfillment center, you can use modern technology to improve and grow your business.

Warehouse And Fulfillment: What Is The Difference?

The term fulfillment center is frequently used interchangeably with the warehouse. However, the fact of the problem is that they are both different. Both are large buildings used to keep inventory for companies. However, the actual offerings supplied may be very different.

A warehouse is virtually described as a building that is mainly used for storing items. Warehouses are not used best with the aid of manufacturers but by anyone concerned in transferring products around the sector. This consists of importers and exporters, shipping corporations, wholesalers, and customers. Warehouses are commonly big and plain in design.

  • Warehouse operations are commonly static, while fulfillment centers operations are more complex and in constant movement.
  • An individual enterprise or business regularly uses a warehouse; a fulfillment center can offer multiple merchants who need to fulfill customer orders.
  • Warehouses are used mainly for the long term, while fulfillment facilities offer brief storage for merchandise intending to go out for shipping to customers quickly.

As an eCommerce merchant, the fulfillment of your online keep relies upon the satisfaction of your clients. Understanding the distinction between warehouses and success centers will pass a protracted manner in assisting you in fulfilling client orders correctly and ensuring their satisfaction.


The fulfillment of your online enterprise hinges on customer satisfaction. Suppose customers are satisfied with your merchandise, order fulfillment system, and customer service. In that case, they are more likely to tell about your services to other people and to become repeat clients themselves. 

As a commercial enterprise owner, it is your task to ensure that your products are of the very best and that you are aware of the changing wishes of your customer base. So that it will raise awareness on the one's matter, you need to don't forget to outsource your order success system to a 3rd party logistics provider. The right 3pl company can streamline your order achievement technique for advanced customer delight, leaving you with extra time to do the footwork to develop your enterprise.

Our newsletter

Get great curated articles every week.

Combine sections from Ollie's vast component library and create beautiful, detailed pages.