What are Ecommerce Fulfilment Centres and Why Are They Important?

Go back 15 Feb 2020

What is a fulfilment centre?

Fulfilment centres lie at the core of mail distribution services, they are the physical areas where staff fulfil and carryout orders for ecommerce retailers. These centres are responsible for managing ecommerce business’ items in a fast, cost-effective and efficient way.

Why are they important?

Without ecommerce fulfilment centres, retailers would struggle to independently manage, store and deliver their goods to their customers. Doing this without a mail distribution company (or a third-party logistics (3PL) service) would be a very time-consuming and labour-intensive process, especially if they are sending heavy or multiple items. Fulfilment centres offer a streamlined and cost-effective mailing solution that takes the stress away from ecommerce businesses.

All the ecommerce businesses have to do is send their items to the fulfilment centre and the mailing distribution manages their inventory and ships the products to their customers.

Biggest benefits of ecommerce fulfilment centres:

  • Bespoke management information and reporting
  • Inventory management made easy
  • High speed seamless tracking throughout our network
  • You receive your own dedicated account manager
  • Very cost-effective
  • Shipping solutions

What does the process involve?

The primary aim for all ecommerce fulfilment providers is to help streamline your business through managing your items and sending them to your customers. Your chosen 3PL service will essentially become an integral branch of your business, helping you keep costs low and removing all labour-intensive tasks.

The process can be filtered into four core components:

 

  1. ECommerce store and fulfillment centre integration

Your business must work hand-in-hand with your fulfillment centre. Whenever a customer orders your product, that order should be with your staff immediately so that they are able to process, pack and ship the order. Having a solid technology and IT department to process the orders is also essential, as it minimises downtime and streamlines the ordering process.

2. Inventory management

Once your items reach the fulfilment centre, they are logged by a dedicated account manager and stored ready for orders. A good 3PL company will add your items into their inventory as soon as they receive it (this alleviates the risk of any lost products and items). If your items are not logged into your inventory – even if they are physically inside the fulfilment centre – they will not appear in your inventory, which will result in a loss of sales.

3. Order fulfillment

When a customer clicks ‘buy’, your fulfillment centre is alerted and the packing and shipping process begins. The top priority here is to pack and ship orders quickly and securely. The faster your process is, the quicker your customers receive your items. However, ensuring that items are packed securely is also essential. If your delivery system is fast but lacks security or items go missing, you will lose credibility. Combining fast and secure delivery is at the heart of a professional ecommerce fulfilment company.

4. Returns processing

Sometimes customers will return your goods, whatever the reason is. It is therefore very important that your returns policy and structure is made as simple as possible. Overcomplicated returns procedures will result in a negative customer experience. Ensuring this part of your business is critical to maintaining strong customer relationships.

Looking for an ecommerce fulfilment centre?

ecommerce from the delivery group

At The Delivery Group, we rely on three core principles: People, Partnership and Performance.

For a streamlined, cost-effective and fast solution for your ecommerce business, please do not hesitate to get in touch with our team today.