A fulfilment centre is a modern name for a packing warehouse. The term which was devised in the 1990’s is now becoming widely used amongst online retailers who look to new business models to manage the export and shipping of their products.
Companies such as Amazon use their own fulfilment centres to pick, pack and post products, alternatively businesses can use other commercial third party fulfilment centres as a way of managing the dispatch part of their supply chain to release products.
The bonus for using a fulfilment centre is that the business owners only really need to manage the front end of the buying procedure such as liaising closely with the manufacturer, shipping the goods to the fulfilment centre, monitoring and servicing the website and processing the transaction and communicating with buyers through customer service. The products are then stored at a fulfilment centre and the rest of the process is managed independently of the business. This allows the business owner to have very little input over the process and passes over the responsibility of storage & dispatch to the fulfilment centre for an agreed fee.
Are you an online retailer who uses a fulfilment centre?
If you are an online retailer who is using a fulfilment centre as a method to dispatch your goods, then you’ll need to have online retail insurance in place which will include fulfilment insurance. These policies cover liability for the process of dispatching your goods. To find out more about our online retail and fulfilment centre packages available, please contact our team today.
Find out how we can offer a total e-commerce solution and support service for your online business
References and Further Reading
- What Does Drop Shipping mean?
- Amazon Merchant FBA Retail
- Are you looking to import goods into the UK