View Full Version : Explanation of Fulfillment House

05 Mar 2011, 08:40 AM
Can anyone give me an explanation of a fulfillment house?

05 Mar 2011, 09:02 AM
A fulfillment house is basically a warehouse/storage company that can not only store your products for you, but provide additional services around order fulfillment. These services could include:

- Inventory counts on a regular basis
- Picking and packing of orders
- Shipment via most common carriers (UPS, FedEx, DHL, USPS, and so on)
- Specialized climate controlled storage for perishables
- Special security for valuable items or electronics
- Receiving of shipments and replenishment of inventory
- Returns processing
- Customer service management
- Claims processing for damaged/defective goods

All of these services can have fees associated with them, so you can customize your agreement based on what types of services you need.

05 Mar 2011, 09:32 AM
To add to Gamerfan’s notes, here are a few things to consider if you are looking to work with a fulfillment house:

1. There are a variety of order processing fees depending on the type of product and the volume. You will need to clearly understand those fees.
2. Many fulfillment houses charge an initial set up fee. Be sure to ask about that.
3. Some fulfillment houses have a minimum requirement for inventory and orders. If you do not meet those minimums, your contract could be voided or you could be charged additional fees.
4. Returns fees could be different from regular order processing or receiving fees. Review this carefully.
5. If you need product assembly, some fulfillment houses offer this service – for a cost.
6. You might be asked to sign an agreement for a minimum contract period of 2, 3, or more years. Be sure to check on this and negotiate if it is not what you need.

05 Mar 2011, 09:38 AM
Wow thanks guys for the information! I can use it!