Fulfilment

What is Fulfilment?

Fulfilment is the physical process of getting products from your warehouse to your customers. It includes receiving and storing inventory, picking products when orders come in, packing them securely, and shipping via carriers.

For e-commerce businesses, fulfilment is a critical operation that directly affects customer satisfaction and costs.

Fulfilment Options

In-House Fulfilment

You store products and handle picking, packing, and shipping yourself.

Pros: Full control, lower costs at small scale, can customise packaging Cons: Takes time, needs space, hard to scale

Third-Party Logistics (3PL)

Outsource to a fulfilment company that stores your inventory and ships orders for you.

Pros: Professional operations, easy to scale, often faster shipping Cons: Less control, costs add up, minimum volumes often required

Amazon FBA

Amazon stores and ships your products, including Amazon orders and optionally your website orders.

Pros: Prime eligibility, Amazon handles returns, huge network Cons: Fees can be high, Amazon controls the customer experience

Dropshipping

Products ship directly from supplier to customer. You never handle inventory.

Pros: No inventory investment, no warehouse needed Cons: Low margins, less control over quality and timing

Fulfilment Costs

Fulfilment costs include:

• Storage fees (per cubic metre or pallet)
• Pick and pack fees (per order)
• Packaging materials
• Shipping costs
• Return handling

These costs affect your margins significantly. Factor them into pricing.

Choosing a Fulfilment Strategy

Consider	Questions
Order volume	Enough orders to justify outsourcing?
Product type	Special handling needed (fragile, temperature-controlled)?
Customer expectations	Same-day or next-day shipping required?
Geographic reach	Need multiple warehouse locations?
Control	How important is the unboxing experience?

Many businesses start with in-house fulfilment and transition to 3PL as they grow and complexity outweighs the benefits of direct control.