Updated: Oct 20
eCommerce fulfillment encompasses the whole process of delivering online orders to the customer. This seems simple enough but there are multiple steps to this process, 5 in total. First thing in the supply chain is to receive and store the inventory (Step 1). Next, orders need to be processed (Step 2) so then the products can be picked (Step 3) and packed (Step 4). Lastly, transporting (Step 5) items to their final destination with the customer.
All five of these steps can be done by you in-house, or by an eCommerce business Whether you choose to work in-house or use an eCommerce business will depend on your order volume and space available to you for your business. If you are just getting started with your eCommerce business and have a low order volume, you'll save money if you are handling the fulfillment yourself. Though, when your order volume starts to increase moving to an eCommerce fulfillment center would make more financial sense.
With an increasing order volume, you'll need to hire more people if you are still doing in-house fulfillment. You have to compensate for the influx of work and hire people for the packing and bringing the packages to the post office. Instead of doing that, you could use an eCommerce business that can deal with all of your fulfillment needs under one umbrella.
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