Fulfilment companies are a great idea for an offsite storage facility. They are set up to pick and pack items for wholesaler’s right through to end user customers. It is an extremely handy service if you don’t want to or can’t hold your own stock.
Using a fulfilment company is becoming more and more popular now that this service is more readily available.
Maybe you live in a rural area away from the large capital cities, or you might like to travel a lot and choose not to be around to worry about shipping products to your customers.
There are many freight forwarders who now do this fulfilment process as well. It really does free up your time to do what you do best and not worry about packing and shipping products!
WARNING: Prices for this service can vary dramatically so make sure you factor these costs into your business or you could be left with much less profit than you anticipated!
Fulfilment companies primarily charge space by a cubic metre rate but there are also a few more variables.
Advantages: This option gives you lots of flexibility to basically set up business anywhere while still living where you choose. By having your stock kept in a major city like Brisbane, Sydney or Melbourne, you could get cheaper domestic shipping fees when sending stock to your wholesalers or end user customers.
Disadvantages: These services are not free so you need to factor in your costing’s to suit. Firstly, they’ll charge you to unload the stock from the container. Then they store the stock and charge you at the cubic metre rate, so as long as you have stock sitting there you will always incur a fee, and finally they charge a picking fee for each item or order they send out to your customer.
As long as you have stock sitting in their warehouse you will incur a fee.
They may also ask you to sign a contract to use their service for a certain period of time. Something that will be difficult to get out of if you decide you don’t like their service.