When starting or growing an e-commerce business there are so many questions! Am I getting the best deal on my merchandise? How much inventory do I need? Am I spending enough on marketing? Should I outsource order fulfillment?
While keeping fulfillment in-house might seem like a way to save money that isn’t always the case. And when you outsource fulfillment, you can focus your attention on all the other questions on your list without having to get bogged down with fulfillment issues.
Q: What are fulfillment centers?
Answer: The first question on our list is the most basic. What is a fulfillment center? The definition is also the name. A fulfillment center is a center that takes care of fulfillment. Simply put, A fulfillment center is the physical location that a 3PL (3rd party logistics company) operates to store, pick, package, and ship your product. It’s a place where you can send all of your inventory and the fulfillment company will process all of your orders for you.
Instead of storing all your product in your own warehouse and hiring employees to pick, pack, etc. the fulfillment center takes care of all of that for you. You should even be able to sync up all your e-commerce platforms to a good fulfillment center so that the orders can be processed automatically as they come in.
How we can help…
Ship Central is a third party logistics company with a fulfillment center just outside of Salt Lake City. As a state-of-the-art, software-based fulfillment solution, Ship Central is perfectly positioned to help large and small businesses alike. We integrate with the biggest e-commerce platforms out there to make your life even easier.
Q: What is the difference between drop shipping centers and fulfillment centers?
Answer: People often get drop shipping centers and fulfillment centers confused and it’s easy to see why. They both perform a lot of the same tasks but there are some major differences. This is one of those “a square is a rectangle but a rectangle isn’t a square” situations.
A drop shipping center does everything a fulfillment center does in terms of storing product and shipping it out when your customer orders. The major difference between the two though is that a fulfillment center stores, picks, packs, and ships your product that you own. A drop ship center, on the other hand, owns the inventory, not you.
Here’s how the drop ship center works:
- The customer purchases the product from you, the store owner.
- You then buy the product from the drop ship company.
- The drop ship company then picks, packs, and ships the order straight to your customer.
So the main difference between a fulfillment center and a drop ship center is who owns the product while it’s sitting in the warehouse. If you own the product you need a fulfillment center if you sell someone else’s product as your own then it’s a drop ship center.
How we can help…
Ship Central is a fulfillment center that can securely store your inventory as well as quickly and reliably fulfill orders within 24 hours. We’re partnered with our sister companies Vox Nutrition and On Demand Fulfillment to provide you high-quality supplements, skin care, and hair products. On Demand Fulfillment provides drop shipping services to help you meet all your needs.
Q: Is there a good fulfillment service outside of Amazon FBA?
Answer: There are many good fulfillment companies out there besides Fulfillment by Amazon, Ship Central being one of them! While there are pros to FBA there are also many cons. If you’re trying to build a brand identity and a community of loyal customers, FBA isn’t a great place to do that. By using a good fulfillment service outside of FBA you can have more direct contact and influence over your customers and be in more control over your inventory too.
Ship Central provides many advantages that match FBA and plus more above and beyond that. With Ship Central you can integrate all of your e-commerce platforms into one and be completely confident that it’s your product (and not a competitors poor quality look alike) getting shipped to your customer. You have complete control over the buying process from start to finish.
How we can help…
Ship Central offers API integrations with many top e-commerce platforms like Amazon, Ebay, and Shopify. We offer same day and next day shipping to help you stay competitive on the e-commerce market while still allowing you to retain relationships with customers in order to establish a brand of your own.
Q: How do I choose an order fulfillment company?
Answer: Deciding who you use for your third party fulfillment is a big deal and not a decision you want to take lightly. Order fulfillment is a HUGE part of the customer experience and you don’t often get a second chance if a new customer has a bad interaction with your brand. So doing your homework is really important. Here are 3 essential steps to do just that.
1. Familiarize yourself with their services.
Do they do everything you need them to? Are there other services that you don’t use now but might in the future? You want a 3PL that fits your needs but also gives you room to grow. If you pick a 3PL that can only handle small businesses, you’ll be in trouble when you start to outgrow them.
2. Review their reviews.
What do their other customers have to say about them? Are they easy to work with? Do they follow through on their promises? If you’re selling on Amazon dependability is key; If customers get their orders late there are consequences.
3. Investigate their compatibility.
Do they easily integrate into the e-commerce platforms you use? This one is a pretty big deal. You want a 3PL that works with the platforms you’ve already built out.
How we can help…
Ship Central works with every company, big, small, doesn’t matter. We’ve built our reputation on putting our customers first and helping them take their business to the next level. But don’t just take our word for it. Feel free to review our reviews!
The Takeaway
As you start or grow your business there are a lot of questions running through your mind. Deciding whether to do in-house fulfillment or use a fulfillment center is one of them. It’s an extremely important decision to make because it can have a huge impact on your business.
At Ship Central we work with companies of all sizes to help them take their business to new heights. Our state-of-the-art software will give you the information you need to succeed while we take care of the rest. You’ll even get real-time data and inventory management at your fingertips for complete control.
We’ll help you through the entire process of getting set up. With Ship Central we take care of the fulfillment so you can worry about more important things.