Building a business is hard work, and those who have the dream of starting their own business find out quickly that they are going to be called upon to solve problems that they may have little to no experience with. In the early days of your business, you may e performing the tasks of every department yourself, from sales to book keeping to shipping and fulfillment. For many modern entrepreneurs, the lure of being able to utilize technology in order to alleviate some of the responsibility is strong. Many business owners who in the past would have started a store by building a space in a strip mall now opt to instead take their products online and sell on the internet. Not only are you able to reach a wider audience of potential customers, you also minimize the amount of sales that you personally have to do, allowing the website that drives your store to sell your products for you. While this most definitely helps to allow business owners to concentrate on larger issues, many will still find themselves doing the work of a shipping department when orders are made. Unfortunately, a person has to be in charge of pulling that order from inventory and making sure it gets to the customer who ordered it. This process is very difficult to automate, making a virtual business still have responsibilities that many owners would rather not undertake. Small business owners are still faced with negotiating leases of warehouses, managing employees and keeping up with the legal aspects of a shipping department. Luckily, these entrepreneurs have an option in the form of fulfillment companies.
A fulfillment company takes the responsibility of processing customer orders and appropriately arranging the shipping of the ordered items to customers. Most fulfillment companies utilize software that communicates with your shopping cart on your website to notify them when an order is placed. Your inventory is housed in their warehouses and their employees are used in order to process those orders. In exchange for these services, a small fee is paid per order processed and a fee is paid for the management of the inventory. In many cases, since these services are preformed for many clients, the amount of monetary outlay that is necessary to utilize a fulfillment company is actually far less than if you tried to manage a shipping department of your own. Business owners get to save money and not shoulder the responsibilities at the same time.