eCommerce is a competitive and ever-expanding industry. There are more than 19000 eCommerce businesses in India, and the numbers are increasing yearly. Therefore building a sustainable online business is challenging. One of the reasons eCommerce businesses do not live up to consumer demand and survive competition is they lack fundamentals. Fundamentals like having the right raw material source, an efficient supply chain, and robust warehousing and order fulfilment solutions. Warehousing and fulfilment largely impact a customer’s satisfaction. Inefficiency in fulfilling orders will reflect late Delivery, missing items, and poor logistics.
Without the right warehousing and fulfilment service providers, businesses can struggle to satisfy customers’ instant gratification and ensure that orders are delivered on time. This article discusses the best warehousing and fulfilment service providers you can choose.
What is Warehousing?
Warehousing in eCommerce is the process of storing products that are sold online. Think of it as the “home base” for your products. It’s where they hang out until they’re ready to be shipped to a customer. There are a few different options for warehousing. You can rent out a physical warehouse, use a storage unit, or even store your products at home. The key is to make sure your products are protected from the elements, easily accessible when it’s time to ship them out, and that you have a sound inventory management system in place. Nowadays, eCommerce businesses are using third-party logistics (3PL) providers, which will take care of the warehousing, fulfilment, and shipping for you, giving you more time to focus on other aspects of your eCommerce business.
For example, let’s say you’re running an online store that sells handmade candles. You make the candles in batches and store them in a warehouse until they’re sold. Then, when a customer orders a candle from your website, it’s picked from the warehouse, packaged up, and shipped out to the customer. Without a warehouse, you’d have to make candles on-demand for every order, which would be a huge time-suck and inefficient.
What is Fulfillment?
Fulfilment in eCommerce is the process of getting products from the warehouse to the customer. It’s the final leg of the eCommerce journey, and it’s what makes it possible for customers to receive the products they ordered online. Fulfilment can be handled in a few different ways. First, you can take it in-house, using your staff and resources. This is an excellent option for small eCommerce businesses with only a few daily orders. Or, you can use a fulfilment service like Fulfilment by Amazon (FBA), which takes care of the picking, packing, and shipping for you. Again, this is an excellent option for businesses with high order volume and who want to outsource the fulfilment process to save time and money.
Let’s say you’ve got an online store that sells handmade soap. A customer orders a bar of soap from your website. The order goes through, and the soap is picked from the warehouse, packaged with care, and shipped off to the customer. Voila! Fulfilment complete.
What is the Difference Between a Warehouse and a Fulfilment Center?
Long-Term vs Short Term Storage
First, let’s talk about storage. A warehouse is a place where products are stored for long-term periods. This means that products can sit in a warehouse for months or even years before they are sold. On the other hand, a fulfilment centre is where products are stored for short-term periods. This means that products are only kept in a fulfilment centre for as long as it takes to process an order and ship it out to the customer.
Operations
Regarding operations, a warehouse is generally used to store large quantities of products and manage inventory. This includes receiving inventory, counting and organizing products, and keeping track of stock levels. A fulfilment centre, however, is focused on processing orders. This includes receiving inventory, processing customer orders, picking and packaging products, and shipping them out to customers.
Frequency of Picking Up by Shipping Carriers
Another critical difference is the frequency of picking up by shipping carriers. Warehouses usually have a lower frequency of picking up products than fulfilment centres. Since warehouses store products for long-term periods, shipping carriers may only pick up products once or twice a week. In contrast, fulfilment centres must ship out products as soon as they are ordered so that shipping carriers may pick up products multiple times a day.
Purposes
The main purpose of a warehouse is to store products, keep them safe and secure and manage inventory. As for fulfilment centres, it’s to process orders, pick, pack, and ship products to customers.
Best Warehousing and Fulfilment Service Providers In India Offer 24-Hour Delivery
NimbusPost
NimbusPost is one of the best warehousing and fulfilment service providers in India. Through their next-gen smart warehouses & fulfilment centres, you could enable same-day delivery with reduced costs by up to 30%. This helps eCommerce businesses give customers an excellent delivery experience by leveraging high-end infrastructure and tech-enabled fulfilment solutions.
Some of the features NimbusPost warehouse and fulfilment service offers:
- Centralised data and information
- Absolute visibility into the supply chain
- Automated status updates
- 9% SLA-compliant service
Fulfilment by Amazon
Fulfilment by Amazon (FBA) is one of India’s leading warehousing and fulfilment service providers. It offers a range of services, including storage, packaging, and Delivery of products to customers on behalf of the seller. In addition, Amazon allows sellers to leverage Amazon’s vast network of warehouses and distribution centres across the country, which can help increase the reach and visibility of its products. FBA also offers various value-added services, such as customer service, returns management, and automatic tracking and reporting.
Flipkart Fulfilment
Flipkart Fulfilment is a service offered by the Indian e-commerce giant Flipkart, which allows businesses to store and ship their products through Flipkart’s logistics network. The service is designed to help e-commerce businesses manage their inventory and fulfil orders more efficiently.
Flipkart Facilitates eCommerce businesses with their warehousing and fulfilment services in the following ways:
- Access to Flipkart’s extensive logistics network and warehouses across India allows businesses to store their products closer to customers and reduce delivery times.
- Automated inventory management and order fulfilment services streamline the process and reduce the need for manual labour.
- Integrated shipping and tracking allow businesses to easily monitor their orders’ status and ensure they reach customers on time.
- Flexible pricing options and customized solutions allow businesses to choose a package that best suits their needs and budget.
DHL eCommerce Fulfillment
DHL eCommerce Fulfilment allows sellers to store their products in DHL’s warehouses and has them fulfilled through DHL’s logistics network on a “pay per usage” basis. One of the most significant advantages of using DHL eCommerce Fulfilment is that it allows sellers to leverage DHL’s global network and expertise, which can help increase their reach and visibility in the worldwide market.
Some of the features of the DHL IFN fulfilment company for eCommerce are:
- One-view tech platform for processing orders, inventory management, order fulfilment & Delivery to the end consumers
- Next-day Delivery in over 80 cities
- Range of B2B & B2C warehousing services
- Seamless logistics management
- Vendor-managed inventory
- Inbound handling, consolidation, and global distribution to outstations
This can help sellers better meet their customers’ needs and improve their overall customer experience.
Conclusion
Choosing the right warehousing and fulfilment service provider in India is crucial for any e-commerce business’s success. Many eCommerce sellers realize this in the middle of sales. However, each provider has its unique set of features, services, and pricing models, making it difficult to determine the best option. Therefore, eCommerce businesses should carefully weigh the costs and the level of services and features before signing up for any service provider. NimbusPost’s leading warehouse and fulfilment service are also recognized by Clutch.co as one of the best in the country. With NimbusPost, you can manage multiple marketplaces, channels, and courier services on a single platform.
FAQs
Is Amazon considered a 3PL?
Amazon is considered a 3PL (Third-Party Logistics) and fulfilment company. Amazon’s 3PL services include their Fulfilment by Amazon (FBA) program, which allows third-party sellers to store their products in Amazon’s warehouses and use Amazon’s logistics network to ship their products to customers. In addition, Amazon also offers other logistics services, such as transportation and Delivery through Amazon Logistics and Amazon Transportation Services.
Amazon also operates as a retailer, and as such, it fulfils its orders for products it sells directly to customers. So, Amazon is a 3PL provider that uses its logistics and fulfilment services to support its e-commerce operations.
What is 4PL vs 3PL?
4PL, or fourth-party logistics, is a higher level of outsourcing than 3PL. A 4PL provider acts as a single point of contact and manages all logistics functions on behalf of the client, including coordination with multiple 3PL providers. They also often provide technology and IT services to support the logistics process. 3PL, or third-party logistics, uses an external company to handle a business’s logistics and supply chain management functions. This includes tasks such as warehousing, transportation, and distribution of goods. The 3PL provider generally works as a subcontractor to the client, who retains overall responsibility for the logistics process.
What is outsourcing in a warehouse?
Outsourcing in a warehouse refers to using a third-party logistics (3PL) provider to handle warehouse-related functions for a business. This can include receiving and storing inventory, picking and packing orders, and shipping products to customers.
When a company outsources warehouse operations to a 3PL provider, the provider is responsible for managing the warehouse facility, equipment, and staff. The provider also handles inventory management, including receiving and storing products, tracking inventory levels, and ensuring the accuracy of inventory records. They also take order fulfilment, including picking and packing orders and shipping products to customers.