Fulfillment Center vs. Warehouse: Which is Best for Your Business?

Fulfillment centers and warehouses find themselves used interchangeably, yet they play very different roles. Learn about these key differences on the blog.
Fulfillment Center vs. Warehouse: Which is Best for Your Business?
3 Min Read
December 25, 2019
Jules
3 min read
Dec 25, 2019

Key Points:

  • A warehouse is simply defined as a building that is specifically used for storing goods
  • Fulfillment centers are physical spaces where customer orders are processed and fulfilled
  • Warehouses only handle storage of customer products; fulfillment centers handle all stages of order fulfillment, including negotiating rates with courier services

Without a doubt, one of the best ways to achieve a positive customer experience is to make sure that they receive their orders in good time. And, the best way to do this is to make sure that your chosen fulfillment center can keep up with customer demands. After all, one of the benefits of online shopping is having access to a wide range of products. However, this is only the case if these products can be packaged and shipped efficiently.

To do this, it’s important to understand the nuances of the fulfillment center vs warehouse debate. This guide will explain the differences and similarities between the two and how to choose between them.

What is a Warehouse?

A warehouse is simply defined as a building that is specifically used for storing goods. Warehouses are not used only by manufacturers, but by anyone involved in moving products around the world. This includes importers and exporters, transport businesses, wholesalers, and customers. Warehouses are usually large and plain in design. Often, they’re also situated in industrial parks on the outskirts of a city or town.

FUFILLMENT CENTER VS WAREHOUSE

Most warehouses also have loading docks attached to them. This is to facilitate the loading and unloading of trucks. Some warehouses are even designed to allow goods to be loaded into them directly from the seaport, airport, or railway. Any space can function as a supply chain warehouse for small businesses, from a spare room or garage to a basement. However, your warehouse will have to have some unique basic elements. Though these may differ depending on the type of products you deal in, you may need to consider having on hand:

  • A climate control system, especially for frozen or pharmaceutical products
  • Adequate shelving to store goods
  • Inventory management software that allows you to accurately track your items and take inventory quickly
  • Equipment for lifting heavier objects and moving them from one place to another (i.e. a forklift, pallet jack, etc.)
  • Pickers and loaders to help fulfill orders
  • Adequate security, especially if you deal in high-value items
  • Affordable transportation for moving products

What is a Fulfillment Center?

Fulfillment centers are physical spaces where customer orders are processed and fulfilled. These are usually designed to offer cost-efficient, fast eCommerce business order fulfillment. Depending on whether your orders are business-to-business (B2B) or business-to-consumer (B2C), they will go from the FC directly to retailers or your customers’ doorsteps.

Many eCommerce retailers choose to sell through eCommerce channels because it eliminates the need for a physical space. Fulfillment centers enable eCommerce companies to outsource fulfillment, including shipping orders and storage space needs. It also saves them time, energy, and money, which can instead go directly to manage inventory.

Related Post: The Challenges of In-House Fulfillment

Fulfillment Center vs. Warehouse: The Similarities and Differences

Now that you know exactly what fulfillment centers and warehouses are, we can weigh in on their differences. Here are a few things you should know:

  • Both are usually large buildings that are capable of storing products for many businesses
  • Warehouse spaces are used as a long-term storage solution, while fulfillment centers offer temporary storage for products that will soon go out for delivery to customers
  • Warehouses only handle the storing of inventory; fulfillment companies handle all stages of order fulfillment, including negotiating rates with courier services.
  • Warehouse operations are mostly static, while at fulfillment centers, operations are more complex and in constant motion
  • A warehouse is often used by an individual company or business; a fulfillment center can offer its services to multiple merchants who need to fulfill customer orders

In addition, fulfillment centers offer a number of services that warehouses don’t, including:

  • Pickup of products for individual customer orders
  • Gathering of inventory
  • Order packing
  • Shipment labeling
  • Managing customer exchanges and returns
  • Ability to guarantee next-day or same-day delivery in various locations.

Fulfillment Center vs. Warehouse: Know the Differences

As an eCommerce merchant, the success of your online store can depends on customer satisfaction. Understanding the difference between warehouses and fulfillment centers will go a long way in helping you work towards fulfilling customer orders efficiently and ensuring their satisfaction. Easyship partners with over 20 warehouses around the world and offers assistance with fulfillment.

Sign up for a free account today and let us help you streamline your order fulfillment process while you focus on growing your business.

TABLE OF CONTENTS

Key Points:

  • A warehouse is simply defined as a building that is specifically used for storing goods
  • Fulfillment centers are physical spaces where customer orders are processed and fulfilled
  • Warehouses only handle storage of customer products; fulfillment centers handle all stages of order fulfillment, including negotiating rates with courier services
Get Your Ship Together.

By submitting the form, you agree to receive marketing emails from Easyship.

Save up to 91% on Shipping. Try for free.

Effortlessly compare 550+ courier services with one global account. Instant discounts. Start in minutes.

Shipping Internationally? Unsure What Tariffs or Duties Apply?
Try our FREE Tax & Duty Calculator

Trying to stay up to date on the latest cross-border shipping and import requirements? Get an instant estimate of all applicable taxes and duties for every country across 220+ global destinations or sign up and take advantage of our in-built HS Code lookup tool.

Calculate Tax & Duties Instantly (Free Tool)
Ready to Stop Overpaying for Shipping?
Try our FREE Shipping Rate Calculator

Looking for the cheapest way to ship a package? Get an instant shipping quote and compare rates from 550+ courier services across the United States, Canada, UK, Australia, and more. Simply add your package size and delivery location, and you'll find the best deal in seconds.

Calculate Rates Instantly (Free Tool)
Planning Your Campaign?

Get in touch with us now and our shipping consultants can give you a detailed quote and additional info to help with your campaign.

Get in touch
The Cheapest Shipping from USPS, UPS & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 250+ couriers at a glance.

GET RATE QUOTES FREE
The Cheapest Shipping from USPS, UPS & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 250+ couriers at a glance.

GET RATE QUOTES FREE
Get in touch with our fulfillment experts!

We believe simple pricing is the best pricing. Get a quote with a simplified pricing structure and no hidden fees.

Contact us
Need help fulfilling your crowdfunding campaign?

We provide the necessary tools needed to keep you on budget for shipping and to safely deliver your product to backers around the world.

Learn more
Try our duty & tax calculator!

Need to estimate your shipping duties & taxes? Our calculator can give you an idea of what to expect.

TRY IT NOW
Save up to 91% on Shipping. Try for free.

Compare 550+ courier services with one global account. Start in minutes.

GET STARTED FOR FREE
Get a Free Quote for Your Campaign

Receive a personal cost estimate for your crowdfunding campaign from our trusted global fulfillment partners. Easyship is a certified Indiegogo partner.

GET FREE QUOTE
Looking for great rates from a top courier?

Save up to 74% on UPS shipping rates by shipping with Easyship. You can run a quote and generate your first shipments in literally minutes!

SHIP WITH UPS TODAY
The cheapest way to ship for eCommerce

Get instant access with volume-discounted shipping rates. Save up to 89% off on USPS, UPS, FedEx, and more. Easyship is free for 50 shipments each month.

SIGN UP FREE TO SAVE
Find your perfect fulfillment partner with expert help

Let Easyship connect you to the largest shipping and fulfillment network on Earth. You’ll find trusted partners for all things logistics. Guidance is free from our global shipping experts.

ASK AN EXPERT
Don’t miss our money and time-saving features!

Explore the powerful features that 100K+ merchants use to ship smarter, not harder. Shipping automation, live rates at checkout, live duty and tax – all free to try with Easyship.

EXPLORE ALL FEATURES
Start saving on shipping in seconds

Create your free Easyship account to streamline shipping and save with discounted rates. No hidden fees. No minimums. Just savings.

CREATE YOUR FREE ACCOUNT
Create Your Shipping Policy Free

Use our guided walk-through to build the perfect shipping policy for your eCommerce business.

CREATE YOUR POLICY FREE
Looking to intergrate your Shopify store?

With 550+ pre-negotiated shipping services available with discounts of up to 91%, you can save time & money today when you integrate your Shopify store with Easyship

REGISTER FOR FREE
Use Easyship Free Every Month

Easyship is free to use for 50 shipments every month. You’ll save big on our discounted shipping rates up to 91% off, and save time with smart automation. Signup is fast and free.

CREATE YOUR FREE ACCOUNT
Don’t miss the key steps to fulfillment success

Follow the easy path to fulfillment success. Easyship’s free fulfillment checklist provides a proven step-by-step so you can ship at scale without the guesswork.

VIEW THE CHECKLIST
Ship for less with any courier, guaranteed

Save up to 89% off all shipping rates. Easyship offers the guaranteed cheapest volume-discounted rates on the market from USPS, UPS, FedEx, and 250+ global couriers.

SIGN UP TO SAVE
Don’t miss all our money and time-saving features!

Explore the innovative features that 100K+ merchants use to ship smarter, not harder. Shipping automation, live rates at checkout, live duty and tax – all free to try with Easyship.

EXPLORE FEATURES
Want the cheapest rates?

Register for an Easyship account today and you will gain access to the cheapest rates, instantly.

REGISTER FOR FREE
Watch out for international duty and tax!

What exactly does it cost to ship cross-border? Use the free duty and tax calculator from Easyship to view accurate import costs for any shipment to anywhere.

USE FREE
Protect Your Crowdfunding Budget from Cost Creep

Prices are rising, deliveries are slowing. Get up to speed on the state of crowdfunding shipping with expert Easyship analysis and keep your campaign on budget.

LEARN MORE
Discover the Cheapest Shipping from USPS, UPS & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 550+ courier services at a glance.

GET A FREE QUOTE
Discover Your Cheapest Way to Ship

Find the guaranteed cheapest shipping in seconds with Easyship’s free shipping rate calculator. Compare discounted rates from USPS, UPS, FedEx, and 250+ global couriers at a glance.

COMPARE RATES FREE
Compare the best rates in seconds

Get an instant estimate of the cheapest shipping rates with our free calculator tool.

GET FREE RATE QUOTES
Save money on every shipment

Save up to 91% off shipping with Easyship’s discount courier rates. Create your free account to save instantly on 550+ courier services, including USPS.

CREATE YOUR FREE ACCOUNT
Ready to ship internationally?

Get help from our global shipping experts on warehousing, global shipping and to connect with our network of trusted 3PLs.

GET FREE SHIPPING TIPS
How’s Your Covid Shipping Policy?

Use our free shipping policy generator to formulate your safest, most customer-friendly shipping policy in seconds.

GET YOUR SHIPPING POLICY
Try Pre-generated Return Labels For Free

Register for an Easyship account today and get 30-days access to a Premier plan with access to Pre-generated Return Labels.

Generate Return Labels Today
Discover the Cheapest Shipping from USPS, UPS® & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 250+ couriers at a glance.

GET RATE QUOTES FREE
Get Up to Speed On Covid Shipping

Explore our Covid shipping resources to make sure your shipment arrives on time and in good condition.

LEARN MORE
Free Shipping for the Holidays 101

Learn how the leading brands offer free shipping, calculate costs, and ship on a budget for the holidays in our free shipping guidebook.

LEARN MORE
Your Perfect Shipping Policy, Ready in Minutes

Use Easyship’s free shipping policy generator to formulate your perfect holiday shipping policy for returns, tracking, and more. Just follow the prompts and you’re done!

GET YOUR SHIPPING POLICY
Scale Your Growth Internationally With Pro Tips

Learn how to ship internationally without missing a step. Our case studies show you proven tactics for shipping worldwide from Easyship users who did it right.

READ CASE STUDIES
No items found.
Share on:

Related Articles

No items found.