What are Fulfillment Services?
10 Things to Know About Fulfillment Services
How Does It Work?
Fulfillment Terms & Definitions
Questions to Ask Fulfillment Companies
How to Choose a Fulfillment Provider

How does it work?

Fulfillment companies typically receive your products directly from your supplier and store them at their facility. While they are stored there, the fulfillment company can package and ship products to your customers as they are placed. Generally you will sign a contract with the fulfillment company that goes over exactly what services they will provide such as answering phone calls, expediting shipping, receiving orders, etc. Most fulfillment businesses will have costs per service. For example there will usually be a storage fee, management fee, per-unit fees, etc. Usually the management fees are fixed month to month, however the costs for storage will usually differ from month to month as your sales volume fluctuates. Storage fees are usually charged “per pallet” or per month, depending on how much warehouse space you decide to rend each month. Prices will differ on the kind of product you are storing, and shipping prices will also change depending on the kind of shipping you want, such as standard, expedited, or next-day delivery.

Fulfillment Terms & Definitions

Lift gate: A device on the back of a delivery truck that lowers and raises a platform from the ground to the cab that makes loading and unloading trucks easier.

Transaction fee: The amount that is charged for managing a transaction involving credit card processing.

Credit card dispute: If a customer feels that they have been charged a different amount than they agreed to, they can challenge the credit card charge. Anyone can challenge the charge, but paperwork must be given to the credit company who will decide which party is right.

LTL (Less-than-truckload): The title for a shipment that is too large to be carried by a conventional mail carrier, yet smaller than a whole truckload.

Termination clause: A part of a contract that allows a party, or both parties, to back out of a contract should a particular event happen or not happen.

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