If reading the title lands you on this page then you are operating into the e-commerce sector. Any enterprise that is operational and fulfilling their customers’ online orders, the fulfillment center and warehouse play a pivotal role to run their business seamlessly. However, before utilizing these facilities, understanding the key difference and how you can make the most of both is equally important.

Foremost it is necessary to understand,

The basic difference between Fulfillment Center and Warehouse.

Fulfillment Center: It is a space where the customers’ orders are processed that eventually makes the retail operation easy.

Warehouse: It is an infrastructure that businesses use for storing their products and fulfilling the requirements of consumers.

The above read might still be creating confusion regarding the functionality of both when it comes to fulfilling the demand of customers.

The key difference between Warehouse and Fulfillment Center is storage. The eCommerce fulfillment center handles the operations after the customer placed an order via an e-commerce platform. This majorly involves inventory management to deliver the packed item with the help of shipping service providers along with their charges. Whereas warehouses are solely responsible for keeping the volume of items to send to the designated place.

In what way can both be beneficial for you? Let’s find out by comparing key factors.

Main Points

Fulfillment Center

Warehouse
  • Purpose
 Order fulfillment includes receiving of order, inventory management, packaging, labeling, shipment, delivery.

 Storage
  • Time Duration

The products are stored for a longer duration compared to the warehouse

 Short-term storage also moved from one to another place, shelves, or another warehouse located in different regions.
  • Facilitate
 E-commerce companies, corporates, B2B and B2C B2B, wholesale, business with bulk orders.
  • Availability
 Charged on the basis of hourly, monthly, or item basis Cost-effective, available on lease.

How can fulfillment centers prove to be beneficial for you? 

There are multiple shipping carriers operational around the world, the fulfillment center utilizes it to their advantage. This in a way also helps e-commerce enterprises to make their customer experience satisfactory. Since, it is a customer-centric facility thus, once an order is placed, the team makes sure to process the same in a timely manner which leaves a good impression of the brand on consumers too.

PLEASE READ  – Fulfillment Warehousing for Your Business 

Improved Business Operations:

The packing and shipment of the packed article can be easily outsourced. This gives flexibility to entrepreneurs and brands surviving on e-commerce. The assistance will help in taking this process out from the to-do list which also cuts out the expenses making it easy for the business to scale and increase the revenue. 

Keeping the focus on marketing and customer service by handing out the shipment and order fulfillment to service providers of the same will help a business to be strategic.

Automated 

The advancement in technology is letting the fulfillment center integrate it into their infrastructure. The key feature of an automated facility is the update of the inventory. It saves time and works in real-time keeping the status informed business.

READ – All About Fulfillment by Amazon (FBA)

Improved Business Reach

It helps in managing the business by keeping the order regulated in terms of inventory. The fulfillment center facility allows an enterprise to monitor the volume, shipment & resources effortlessly. In this way, the corporate can scale up without making much hustle. 

Summing up the above said, the warehouse is a cheap & storage-centric facility. Whereas the fulfillment center allows your e-commerce operation that are inventory management, shipment, and order delivery efficiently by cutting down the expenses.