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Comparison Between Warehousing & Fulfillment Centers

Comparison Between Warehousing & Fulfillment Centers

Warehouses are large buildings and containment areas where a business can store its inventory of finished goods until they are redistributed to retailers, distribution centers, etcetera.

Here is a list of both the advantages and disadvantages of using a fulfillment company for e-commerce retail business. To get more details about warehousing and fulfillment centers you may see it here https://shiphype.com/fulfillment-center.

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Advantages

1.Free up storage space and operations

For modern e-commerce retailers, managing a physical, privately-owned space may be difficult and demanding with high costs and the hassle of managing inventory themselves.

Using privately-owned space with no clear storage or management systems can lead to messy results and delays in product deliveries, leading to an unwanted fall in ratings.

This is a major reason businesses consider these centers to be great alternatives to running inventory, processing, packaging, and personally shipping the products.

2.Improve your business focus

While processing, packaging, and shipping products to customers is the main aim of any e-commerce retailer, these are services and processes that can be outsourced for maximum efficiency and easy returns.

If order fulfillment is outsourced through distribution centers, companies can stay focused on the other essential parts of their jobs and grow their business. 

Disadvantages

1.Loss of control

A few business owners might feel a loss of control and be unwilling to relinquish power over their fulfillment operation. As it is outsourced and unrelated labor, fulfillment companies do have the disadvantage of being unknown.

2.Potential lack of customization

Vendors and e-commerce companies often personalize packaging to appeal more to their consumer base.

Unfortunately, once you outsource, the packaging management and control are delegated to the distribution center, and you may have to sacrifice some of the details on the packaging.