A warehouse refers to the place where a company stores products for sellers for an open-ended period of time. It is a large facility or industrial space that houses an inventory to be sold. It can contain large containers, shelves, storage bins, and pallets filled with products each identified by their own unique SKU (or stock keeping unit), as well as equipment like forklifts that are used to move the inventory around.
The main businesses that work with warehouse providers primarily do wholesale or B2B (business-to-business) orders in large volume. Some e-commerce companies own and operate their own warehouse to store their excess inventory until it is ready to be shipped, while others rent out the warehouse space depending on their storage needs. If you also own an eCommerce business, then you must hire warehouse services via eliteops.com/utah-service-area/.
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Depending on location, renting warehouse space is usually a more cost-effective solution for small to mid-sized sellers for e-commerce fulfillment although that can depend on the available space and rent terms.
The main function of a fulfillment center is to manage the seller’s inventory, store the inventory, ship orders directly to customers and/or retailers, and assist sellers in managing the entire vital, yet often difficult fulfillment operation.
When a seller outsources their fulfillment to a 3PL, the 3PL handles the processes on the seller’s behalf. This can include storage, receiving, packing, and shipping, negotiating lower shipping rates, handle high-volume needs and often lower fulfillment costs other order fulfillment services.