About fulfillment houses and fulfillment services.
This information is important to dropshippers who are interested in maximizing their profits.
An order fulfillment service is a service that stores products in a warehouse and ships them on order.
You can use an order fulfillment house to stock inventory that you own, or you can use an order fulfillment house that stocks products that someone else owns.
Why You Should Use A Fulfillment Service
Owning your own warehouse, staffing it, and administrating it can cost hundreds of thousands of dollars.
It also requires you to put a substantial amount of startup capital at risk. And your company will have to pay full operating costs whether or not the space is fully occupied.
Outsourcing your order fulfillment is much more cost effective. And it will allow you to grow.
Outsourcing your warehousing to a fulfillment house allows you to switch fixed costs into variable costs. You only pay for what you use.