Definition of Fulfillment-
Fulfillment is also known as order fulfillment or product fulfillment, it is a process whereby people or companies fulfill an obligation to send goods to those who have ordered. Fulfillment typically refers to services provided by a company that offers to stock, receive the orders, package, and ship ordered item to customers. Many fulfillment centers are in the local countries for the traditional businesses.
Function of Fulfillment Centers-
- 3PL (third-party logistic)
- Re-packing of goods
- Labelling or Re-labelling of goods
Benefit of Having An Outsourced Fulfilment Center in China-
- Zero stock to keep- with most of the goods are outsourced from China, it’s not necessary to keep stock goods;
- No financial pressure- there is no financial pressure of keeping millions of dollars of goods without knowing whether all of them will be cleared or not;
- No need to rent warehouse- the fulfillment center facilitates the storage, picking & packing, and distribution of the ordered items by the end customers; Especially for younger products in infantile stages of development, the producer may not have adequate storage facilities or funds to build them. Fulfillment centers typically have thousands of square feet of warehouse space and the warehouse rental cost in China is generally much cheaper than many other countries of the world
- No need to hire warehousing staff and get involved in all salaries, insurance, etc for employees.
- Much lower package material cost- package materials bought in bulk will have a much lower cost and as a world manufacturing factory, China has much more competitive advantages in the cost of packaging materials.
- Much lower packing/repackaging cost-
- Fulfilment is never the primary function of any business. By outsourcing this secondary function, time is better spent on value creating activities such as sales, marketing, buying, and innovation
- Great flexibility – An outsourced fulfillment center may help deal with peak seasons in the most efficient way by providing increased flexibility and scalability in order fulfillment.
With international e-commerce coming up such as Amazon, eBay, there are more and more international packages delivered from China which is the manufacturing center of the world to many different destinations of the whole world. China fulfillment center is more often needed than ever before. We also serve customers from Kickstarter, Indiegogo, etc. to ship their packages to various corners of the world.