The selection of a fulfillment center is important to the success of any e-commerce business venture, regarding profitability and long-term survival. It is common to see more and more businesses starting an ecommerce channel for the businesses. This is in an effort to use up the opportunities that come with selling online, where clients do not have to visit their physical locations to get access to these products. There is also the question of distance, where their clients cannot get to their physical shops. The internet brings all of them closer, where purchasing from them is now a reality. This is also a way to limit any human interference in the selling process, and to streamline it as much as possible. This makes for a more affordable way of doing business.
The tricky bit with these systems is the fulfilment section of the selling process. There is still a need to have the step of taking an order and sending the product to the client done. The products to be sent have also to be properly looked after and sent out as needed. This is not an easy thing to manage. Which is why fulfilment centers have come up, to solve this dilemma for the online businesses. It has presented them with the advantage of having their orders delivered, while remaining virtual, and not incurring the costs of hiring personnel and renting out space for the actual physical work. Their stock is kept at the fulfillment center warehouses, and they just cover the costs for the space used. A client placing an order for a certain items leads to the order being sent to the fulfilment center, where it shall be packaged and sent to the client’s location. The center is capable of handling many orders from different merchant websites, and so knows efficient space and personnel management. This also makes the costs incurred by each merchant relatively reasonable.
Fulfillment centers have the ability to place the products as close to the customers as possible. This greatly cuts down the shipping distance the products will go through. They will therefore save a lot on transportation costs. They manage this by having their warehouses situated in different regions stocking up on similar inventory, so that whatever is needed at any area is easily and quickly retrievable. The orders that go out are then from a warehouse nearest to the client.
This makes it important for a business person operation on an e-commerce platform to go for a fulfillment center that has its warehouses distributed strategically across the states, and located near main highways, for ease of reach to their customers. The online businesses will need these services of they are to remain trustworthy to their clients.