The terms warehouse and fulfillment are often used interchangeably but each of these are used in varied circumstances. At their basic level, these are designed to store inventory for businesses to sell their physical products. Despite this, these offer a diverse range of services for their clients. Understanding the difference between fulfillment centers and warehouses is important to make the right selection for your business.
Warehouses vs. fulfillment centers
Warehouses often refer to a place where the company stores its products for sellers for an extended time. This is often a large facility that can house products for online and offline sellers. These can also have special storage bins, pallets, etc. filled with products with a unique SKU.
The main businesses that work with these warehouses often have B2B or wholesale orders. Smaller sellers or those with a startup business can choose these services when they wish to maintain their inventory.
However, a fulfillment center is the ideal location where the seller or the business decides to outsource their fulfillment through a third party. This means that they fulfill the orders of an e-commerce store by direct fulfillment of the order. They can even manage the business-to-retailer fulfillment services when the seller wishes to supply to a big box retailer. The orders are often larger in size and scale.
How do fulfillment centers help small and large businesses?
The main idea of outsourcing to the fulfillment centers is to ensure that these centers manage the diverse seller inventory using advanced technology and ship these directly to the customer. These can assist small and large sellers to manage their entire inventory, especially during peak season.
Further, these help small businesses to smoothen their operations, especially with the returns. For small businesses, managing customer service and returns can be tough. Choosing the right fulfillment partner can improve their delivery speed, customer support, tracking, and returns.
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