5 Common Misconceptions About Fulfillment Companies

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5 Common Misconceptions About Fulfillment Companies

The concept of fulfillment is becoming increasingly important as businesses expand their customer reach. In the past, companies who wanted to reach a wider audience had to go to a traditional newspaper, radio station, or TV station to promote their products. Today, a company will partner with a 3PL partner to have the same impact without costing much. A 3pl system is foundational for any retailer that fills and ships customer orders, especially those that do so on a large scale. However, there are still some misconceptions about the service, and this article looks to eradicate them.

Fulfillment is Only for Online Retailing

This is a common misconception that fulfillment companies are only reserved for online business. However, most large companies sell their products through multiple channels. For example, a shoe company selling the product online can have their factory in China from where they can supply the shoes to customers worldwide.

Only for Big Brands

This is another misconception stopping startups from using their services. Big brands have undoubtedly increased their efficiency using the service, but many major e-commerce players started small and grew after hiring 3PL services.

Low-Tech Business

Many people think fulfillment is just packing and delivering products. However, it is a high-tech service that uses innovative technology to manage and store inventory. These companies typically use big data, artificial intelligence, and modern communication technology to automate the entire process.

Outsourcing Order Fulfillment Is Complicated

Many e-commerce business owners still think outsourcing is a complicated process. However, outsourcing logistics is probably the best investment if you provide accurate details and set performance indicators. You don’t have to worry about inventory health, order processing, and returns, as they will be expertly taken care of by a fulfillment company.

Fulfillment Companies Won’t Handle Inventory Carefully

This is true for every business, but especially for smaller companies that might not have the experience or the staff to handle large orders and complex inventories. If a company needs to store large volumes of products and doesn’t have the space or staff to manage them, it should consider outsourcing its order fulfillment.

Read Also: A Guide To Resolving Business Disputes

Similarly, fulfillment centers can be the perfect solution when a company wants to store its products securely and, in a temperature-controlled facility. Some fulfillment centers are exclusive for storing sensitive materials. Therefore, 3PL warehousing solutions are not only reliable but will also keep the inventory safe from environmental and other problems.

Fulfillment companies are businesses that specialize in providing retailers with products and services to improve customer experience and satisfaction. Fulfillment companies are an excellent way for businesses to expand their customer reach. They can offer products and services that don’t require the company to go through traditional channels. There are a lot of misconceptions about fulfillment companies out there. We hope this article has helped you understand what a fulfillment company is and what they do. If you’re still unsure, you should consider hiring an expert fulfillment consultant to help you make the right decision.

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