Thursday, March 19, 2020

Word of the Day: fulfillment center

 
Word of the Day WhatIs.com
Daily updates on the latest technology terms | March 19, 2020

fulfillment center

A fulfillment center is a third-party logistics (3PL) warehouse where incoming orders are received, processed and filled. When an e-commerce seller uses a 3PL strategy for fulfillment, it relieves the seller from the responsibilities and costs associated with warehouse management and allows the seller to focus on marketing and sales efforts.

The seller can either receive and review goods prior to shipping them to the fulfillment center or have them sent to the warehouse directly from the manufacturer. If mistakes are made in fulfillment, the fulfillment center absorbs the costs. If the seller ships product from the fulfillment center and the customer returns the product, the fulfillment center typically absorbs restocking fees as well.

Using a fulfillment center to distribute a product can also reduce the cost of shipping it. This is because popular package delivery companies like United Parcel Service (UPS) are able to negotiate pricing with fulfillment centers because they are a reliable source of high-volume business. Quite often, the seller will use that savings to create a value-add by offering the customer 'free' shipping or a coupon code for the equivalent amount.

Amazon has a network of fulfillment centers to handle warehousing, order processing, picking, packing and shipping for partners through its Fulfillment by Amazon (FBA) program. Other popular fulfillment centers include ShipBob, RedStag and FulfillmentCompanies.net. Continue reading...

Today's Takeaway

 

"In an email sent Monday to U.S. customers, computer maker Dell said it was having difficulty meeting delivery dates. The company said its suppliers were experiencing extended delays in shipping processors, memory and other components. Also, Dell's and partners' fulfillment centers were still recovering from the tornadoes that swept through Tennessee March 3..." - Antone Gonsalves

Buzzword Alert

 

Coronavirus

Even as orders increase, disruption from the new coronavirus outbreak could have big consequences for smaller, third-party sellers on Amazon

 

supply chain pivot

Amazon has affected the entire supply chain and logistics industry in the same way they've had a huge impact on retail sales.

 

green shipping

The massive volume of packaging materials and shipping waste created by online shopping takes a toll on our environment. Amazon sits at the center of the controversy.

 

Amazon effect

Amazon doesn't just dominate as an e-commerce leader and cloud service provider -- it dominates a host of other industries as well, with no signs of slowing its expansion.

Writing for Business

 
Facebook announced that ________ prioritizing what friends and family share in newsfeeds.
a. it is
b. they are

Answer

Stay in Touch

 

Thank you for reading! For feedback about any of our definitions or to suggest a new definition (or learning resource) please contact us at: editor@whatIs.com

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