What’s the Difference Between a Warehouse and a Fulfillment Center?

What’s the difference between a warehouse and a fulfillment center?

First of all, this is a warehouse, you know, and that’s a nice warehouse. It’s all insulated. It’s climate controlled 24/7, but still a warehouse is just basically a place to store your products. Usually, they’re stored in pallets. Now, again, when would you use a warehouse? Anytime you want to store things for any extended period of time.

A warehouse basically does three things.

They store your products, they receive your products, and they ship your products back out to somewhere. and they charge you for all three of those processes. But again, let’s suppose you’re an Amazon seller and you move your products on Amazon and you have, you know, 15 pallets of products. You would not want to store 15 pallets at Amazon warehouses because they may charge two, three, $400 per pallet based on the season and the sales rate where uh someone like us could store it for a tenth of that price. So again, warehouses simply store your products.

Now, a fulfillment center is different.

JAG is a fulfillment center and what we do, of course, we have to have warehouses to store products.

But what a fulfillment center is we do the entire fulfillment process. And what that means is we we ship products to your customers. We label your products. We package products. We do special packaging. We build kits. We do all types of anything involved in getting the package from the time it your order is placed and it comes into our system.

Then we pick and pack the order. We check the order. We photograph the order. We ship the order. we make sure it gets to your customers. And so that’s the difference between a pick and pack fulfillment center and a warehouse.

So if you’re looking to use a fulfillment center and you’re a small business and you’ve been doing it yourself, you may want to find out what it’s going to cost. It may cost you much less than you think. For example, if you’re shipping 10 packages a week or less, it will probably cost you around $100 per month for us to handle all of your shipping for you.

And again, that’s time you can be used for building your own business. A warehouse simply stores products and a fulfillment center stores products but also does everything else in the fulfillment process.