Kelsey Huber is Director of Account Management at Fulfyld, leading the team that supports growing DTC and CPG brands from onboarding through ongoing fulfillment performance.
What are the different types of eCommerce fulfillment?
In-house, third-party, and dropshipping are the three main forms of eCommerce fulfillment.
When creating your online store, you must consider how you want your order process to look. Do you have the capacity to fulfill orders on your own or are you looking to hire help? Defined below are the three main forms of eCommerce fulfillment.
In-House Fulfillment/Self-Fulfillment
This is a common method for merchants in the early stages and post-launch. In-house fulfillment happens when inventory management and packing orders is handled internally. House doesn’t always mean a literal home either (although it can). Self-fulfillment can include purchasing a warehouse, hiring employees and acquiring equipment. This just means all fulfillment operations are handled internally/without the help of a third-party.
Dropshipping
Dropshipping is often referred to as the least involved method. This fulfillment process is when the manufacturer oversees all inventory and shipping while the seller acts as a middleman. The seller never sees the product or takes part in the order process.
Outsourcing Fulfillment
Once a business has reached a point of being overwhelmed with orders, many look to a third-party to manage their logistics. eCommerce fulfillment by aThird-party logistics (3PL) is a service offered by fulfillment companies, and their intention is to handle every movement your product makes after manufacturing. More specifically, they usually offer warehousing, picking, packing and shipping.
Here at Fulfyld, we offer services designed to let our customers focus on building their brand instead of shipping orders. Reach out to us if you are interested to hear more about what we can offer your brand!
Frequently Asked Questions
What are the three main types of eCommerce fulfillment?
The three main types of eCommerce fulfillment are in-house fulfillment, third-party fulfillment, and dropshipping.
What is in-house fulfillment?
In-house fulfillment, also called self-fulfillment, is when a merchant handles all inventory management and order packing operations internally. This can include purchasing a warehouse, hiring employees, and acquiring equipment, but all fulfillment operations are managed without third-party help.
Is in-house fulfillment only done from a home?
No, in-house fulfillment doesn't necessarily mean operating from a literal home. While it can include home-based operations, it can also involve purchasing a warehouse and hiring employees to handle fulfillment operations internally.
Which eCommerce fulfillment method is common for early-stage merchants?
In-house fulfillment is a common method for merchants in the early stages and post-launch, as they manage their own inventory and order fulfillment operations.
Kelsey Huber is Director of Account Management at Fulfyld, leading the team that supports growing DTC and CPG brands from onboarding through ongoing fulfillment performance.
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