Why Centralized Fulfillment Works for Ecommerce Sellers

hands of man in warehouse - centralized fulfillment houston

Centralized fulfillment is among the many service options we offer at Shipping & Handling of Texas. We help ecommerce professionals make the most of their opportunities by handling order fulfillment and shipping. We pick, pack, and send orders to customers on behalf of our ecommerce partners.

The centralized fulfillment model works for so many businesses because it meets some very specific needs. Furthermore, our company is already in the business of shipping goods. We already have the warehouse space, vehicles, and infrastructure to handle order fulfillment. Your typical ecommerce operator may not be so well equipped.

In short, here’s why centralized fulfillment works for ecommerce sellers:

Reduced Fulfillment Costs

At the top of a list for many ecommerce sellers is cost. Let’s face it, renting warehouse space is expensive. So is hiring and maintaining adequate staff. An ecommerce business owner usually doesn’t have the financial resources to address fulfillment in a meaningful way. But products still have to go out the door. It costs them less to utilize a centralized fulfillment service, like ours, than setting up their own fulfillment centers.

A Scalable Solution

Speaking of reducing costs, it is not economically feasible to invest in a large amount of warehouse space that isn’t needed. But it is also risky for a retailer to settle for a smaller warehouse in hopes of finding something bigger when the need arises. Centralized fulfillment through a third-party operator solves that problem by offering scalability.

We provide fulfillment services to ecommerce operators of various sizes. We can scale our services to need. As such, we can grow right along with our customers. If increased business means more fulfillment work for us, no worries. We have the warehouse space and staff to get it done. And should a client need to scale back down the road, that is not a problem either.

Better Inventory Control

When ecommerce operators attempt to handle fulfillment themselves, they may run into inventory problems due to limited space. Imagine a retailer ordering just enough product to make it by in a given month. They do not have enough space to order more. Everything is fine until they see a sudden surge in business. Now they don’t have enough inventory to meet demand. What’s worse, they can’t get new inventory in fast enough.

Another common scenario involves having inventory scattered across multiple locations. This can be a nightmare for ecommerce operators. Just like centralized fulfillment allows for storing more inventory, it also solves the problem of scattered inventory. Everything is stored in a single location. All orders are picked and packed by the same team. You end up with better inventory control.

Improved Security

The icing on the cake is the improved security that centralized fulfillment providers offer. Shipping & Handling of Texas exemplifies this point. All our facilities are secure facilities. We do not take any chances with our own property or the inventory our clients trust us to handle for them.

An ecommerce retailer already struggling to get orders out the door will not likely have the time or financial resources to invest in security. That’s risky. A lack of proper security is an open invitation to all sorts of problems, including theft. Ecommerce operators just don’t need those extra hassles.

Centralized fulfillment is built on the philosophy that handling all order fulfillment from a single location is better for business. We don’t disagree. We offer centralized fulfillment because we believe it’s the best option for certain types of businesses – particularly ecommerce outfits. If you would like to learn more about our fulfillment services, please don’t hesitate to reach out.