Fulfillment centers allow e-commerce merchants to outsource warehousing and shipping. Online merchants are able to store all their products in fulfillment centers, which allows them to save on space and reduce the need to manage inventory.
The regional fulfillment center receives the merchandise from sellers, and the provider outsources it to ship it to their customers. Although inventory management is a common operational issue for online stores, it is essential to provide the best customer experience. Fulfillment centers simplify inventory management and give store owners more time for other aspects of their business.
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You can scale your business with a fulfillment center. Fulfillment won't be as important if you are planning to launch new products in the future. Outsourced fulfillment reduces the time it takes for a new product to reach the market.
This service also improves shipping and return processes. Fulfillment centers can often negotiate with shippers who promise large volumes of parcels. This allows them to obtain a lower rate than individual online stores. Some merchants can offer free shipping to customers by offering lower fixed shipping costs. Outsourced fulfillment centers provide tracking numbers for packages to merchants who then forward the information to customers.
An ideal fulfillment center for small businesses gives them the opportunity to scale their business operations without investing in overhead like warehouse space and employees.