The Founders Guide to eCommerce Order Fulfillment Terminology
FAQs
What is the difference between fulfillment and warehousing?
Fulfillment refers specifically to storage, picking, packing and shipping of customer orders. Warehousing encompasses broader supply chain functions like receiving, inspecting, storing, managing and transporting goods.
What are the most common fulfillment fees?
Typical fees charged by 3PL fulfillment centers include storage fees, pick/pack fees per order, and shipping fees if they handle delivery. There may also be receiving, handling and monthly software fees.
What is slotting in fulfillment?
Slotting refers to the organization and shelf location planning of inventory inside a warehouse. Optimal slotting improves picking accuracy and order processing speed.
What is shrinkage in relation to inventory?
Shrinkage means unexpected inventory losses from factors like theft, damages, spoilage and administrative errors. Fulfillment centers use security and climate control to minimize shrinkage.
What is a bill of lading (BOL)?
A BOL is a shipment receipt listing contents and proving the carrier received them in good condition from the shipper. Always validate orders against BOLs before formally accepting.
Why are SKUs important in fulfillment?
SKUs (stock keeping units) uniquely identify each product variant on-hand. Accurate SKU assignment and inventory tracking enables efficient order picking and shipping.
What are common reasons to outsource fulfillment?
Outsourcing can save ecommerce businesses money on labor, warehouse space and inventory management systems. It also provides flexibility to scale up storage and staff as needed.
How can outsourced fulfillment improve my customer experience?
Fulfillment experts provide reliable fast shipping, top-tier customer service, effective inventory and order management and other benefits merchants often struggle with in-house.
