| When you sell something for your business you then | | | | how much you store with them and how much you |
| need to fulfill the order with the customer which | | | | ship. If you store a good number of items with them |
| usually means that you must pack and ship them the | | | | then it stands to reason that you will pay more for |
| item they purchased. However, many people choose | | | | their services. You will also have to pay all the |
| to outsource this to a fulfillment service so that they | | | | shipping fees and are likely to be charged a handling |
| do not have to deal with inventory and shipping. | | | | fee as well. If you ship a lot of items on a regular |
| Fulfillment services will involve all aspects of the | | | | basis you can usually get a shipping discount with one |
| products that you decide to sell including receiving, | | | | of the major carriers. |
| warehousing, inventorying, shipping, record keeping of | | | | While it is indeed wonderful to have all of your |
| all incoming and outgoing items, and customer | | | | shipping needs met by a fulfillment house, such a |
| inquiries. This all takes place with what is known as a | | | | luxury does come with disadvantages. Most fulfillment |
| fulfillment house. | | | | services will not claim responsibility for items lost or |
| The fulfillment house will store all of the items that | | | | damaged when en route to the customer. This can |
| you have shipped to them that you wish to sell and | | | | leave your business with a bad reputation and not |
| then pack and ship those items for you as they sell. | | | | that of the fulfillment service. |
| This saves you from having to pay for warehouse | | | | Additionally many services are not responsible for |
| space yourself and all the extras that come along | | | | what is known as shrinkage or loss of products by |
| with it such as electricity. This also allows you to | | | | theft or otherwise unless it can be proven that they |
| operate from a much smaller workplace which in turn | | | | were responsible. In this way it is always best to |
| will reduce you overhead costs. | | | | maintain a good inventory record with your fulfillment |
| Once an item sells you will usually use e-commerce to | | | | service and if a fulfillment service doesn't have a |
| let the fulfillment service know that they need to | | | | good inventory system in place, then don't use them. |
| ship something. Once they get the order they will | | | | When you find the right service to suit your |
| then take the item from inventory, package the item | | | | fulfillment needs it can save you a ton of time and in |
| and then ship the item to the customer. After the | | | | the end it can even save you money. Because you |
| item ships the fulfillment service will update the | | | | will not have to worry about fulfilling all of the orders |
| inventory and you will usually be notified as to what | | | | that come in you can then focus on growing your |
| has shipped and what is left in inventory on a regular | | | | business and hopefully increasing the number of items |
| basis. | | | | that will ship and thus expand your bottom line. |
| The cost of using a fulfillment service will depend on | | | | |