FULFILMENT CENTRE VS. DISTRIBUTION CENTRE

What is a Fulfilment Centre?
A fulfilment centre is a type of warehouse, storing inventory from various sellers and distributing the products through an order fulfilment process. Fulfilment centres are different than warehouses, though, as they're usually operated by third-party logistics providers. These third-party logistics providers offer a variety of services to clients like e-commerce companies and retail stores, by handling e-commerce orders and offering fulfilment solutions. Fulfilment centre are more focused on business-to-consumer operations.
Amazon is a good example of what fulfilment centres look like. A small business might choose to work with a fulflment centre rather than operate their own warehouses, performing their own order fulfilment services and handling of customer orders. Fulfilment centre often negotiates discounted shipping rates, so shipping costs could be lower than the e-commerce business would get on its own. They may not have a choice, however, in shipping carriers. A fulfilment centre might also handle reverse logistics, as suggested by one of the best Shipping freight forwarding companies in India.
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Factors To Consider When Looking To Use A Fulfillment Center
While using fulfillment centers seems like a no-brainer in certain circumstances, there are a few factors that should be considered before signing any contracts.
• Importance of value-added services: Are services like packaging, labeling customer orders, and faster shipping to customers necessary for your company's current goals.
• Cost of service: Can your business afford to use a fulfillment center at your particular stage?
• Expected Sales: Is your business expecting a high volume of orders, or will your products need to sit for a while?
• Location of fulfillment centers: Are there fulfillment centers near where your target customers live?
Knowing who your customers are and where they are will allow you to get the most out of your experience with a fulfillment cente