Someone who has something new to sell can often struggle to bring it to market. Even when the production of the product and the marketing is sorted out, distributing it can prove to be difficult.
Warehousing is not cheap and neither is transport. Both require a significant initial investment and potentially high ongoing costs. Fortunately, there is an instant, out of the box solution and that is to use a third party fulfilment company.
How it Works?
The process is simple. A firm which has goods it wants to distribute has them delivered to the warehouse of its chosen fulfillment company. When an order comes in, staff at that warehouse pick the order, package it and send it to the customer.
There are several advantages to this approach. Firstly, there are no upfront costs. Firms pay to have their goods received and held at the fulfillment warehouse, but the cost is minimal. It is far less than the cost of a business renting and staffing its own warehouse.
When goods are ordered and sent out there is also a charge. Again, the charge is usually far less than what it would cost for a firm to do its own distribution. Economies of scale allow fulfilment companies to negotiate low postal and courier rates.
Most fulfillment centers operate around the clock. This means that customers’ orders can be processed and sent out quickly. Goods are secure, and provided firms use well-established fulfillment services, are insured. Orders are fulfilled automatically and reliably, allowing firms to use the time they save to concentrate on growing their core business.