DiFFreight Blog Fulfillment for marketplaces: how it works and why sellers need it

Fulfillment for marketplaces: how it works and why sellers need it

Fulfillment for marketplaces: how it works and why sellers need it

Article content: 

  1. Fulfillment for an online store — what role does it play in business.
  2. Advantages of outsourcing warehouse processes and logistics.
  3. How to choose a reliable fulfillment provider for a marketplace or online store.
  4. How fulfillment helps businesses save money.

By clicking the "Place Order" button, your customer initiates the fulfillment process. Now your product must be packed, labeled, handed over to the delivery service, and soon reach the buyer’s hands. This is a separate area of logistics that trade giants have perfected. Take advantage of their experience and use fulfillment services.

Fulfillment for an online store — what role does it play in business

Fulfillment is a full cycle of operations with goods (storage, picking, packaging, shipping, and returns handling). If you have an online store, you are definitely familiar with the process. Most often, small businesses fulfill orders themselves from their physical store, office, or warehouse.

But the more purchases, the harder it becomes:

  • Keeping up with receiving, sorting, packing, and shipping orders.
  • Allocating space for storage, picking, and returns processing.
  • Serving customers quickly without confusion and errors.

Therefore, when scaling, businesses turn to fulfillment partners. What is included in turnkey warehouse logistics:

  1. Order acceptance and processing: checking availability, completeness.
  2. Picking of ordered goods in the warehouse.
  3. Packaging and labeling of the parcel according to business and courier service standards.
  4. Delivery — handover to the courier or postal service.
  5. Receiving and processing goods that the customer wanted to return or exchange.
  6. Storage of products in proper conditions: temperature, humidity, neighborhood.

Are you considering fulfillment for online stores or planning to enter a marketplace? Study the pros and cons of outsourcing delivery and warehouse logistics.

Advantages of outsourcing warehouse processes and logistics

Fulfillment warehouse services are useful for different types of businesses. For example, you have expanded, and now you have many customers across Ukraine. To reduce waiting time, you can use warehouses in several regions.

Or you decided to start selling on Amazon Marketplace or eBay. Standard delivery from Ukraine to the USA or Europe takes weeks. By using Amazon’s fulfillment, you will reduce the waiting time to a few days. And to prepare the goods for acceptance by the platform, DiFFreight provides prep center services for you.

Advantages of Fulfillment Outsourcing Disadvantages
Cost Optimization
Savings on warehouse rent, maintenance, staff hiring and training, and purchase of packaging materials.
Loss of Direct Control over Order Assembly
All delays, errors, and technical failures are beyond your control, but your business reputation suffers.
Scalability and Flexibility
A third-party provider adapts to increased workloads during peak seasons.
Storage and Service Fees
While you save on rent and staff salaries, you still pay for fulfillment services.
Increased Speed
Outsourced companies actively use automation, with well-established processes ensuring fast order assembly and shipping.
Dependence on the Operator
By outsourcing, your business becomes dependent on the warehouse’s quality and efficiency.
Geographic Expansion
A warehouse network allows faster delivery to remote regions, increasing customer loyalty.
Challenges with Non-Standard Goods
Fulfillment for fragile, bulky, or perishable goods will be more expensive, and not all providers will handle it.

How to choose a reliable fulfillment provider for a marketplace or online store

Outsourcing is a strategic decision that should benefit your enterprise. We have prepared a checklist with criteria for reliable providers:

✓ Experience

The longer the company has been in business, the more experience it has with standard and non-standard goods. Take time to read reviews, case studies, and request recommendations.

✓ Technology and integration

Find out which system the partner uses to manage the warehouse. Integration is also important — synchronization with your online store’s CMS or marketplace account for automatic data transfer. High-quality integration allows you to:

  • quickly transfer information about new orders;
  • track stock levels and synchronize availability;
  • promptly receive order status and tracking numbers.

Some outsourcers offer a functional Personal Account where you can view reports on order picking and even receive photo and video evidence.


✓ Geography

It is most reasonable to choose a location close to your main customers or to the marketplace warehouses. This will speed up logistics between points, reducing costs. For large shipments, consider cross-docking services:

  • fast turnover of goods with quick sorting;
  • reduction of warehouse storage costs by 20-30%;
  • fast dispatch to different delivery points, for example, to fulfillment for different operators.

Cross-docking is relevant for large importers and exporters.

✓ Terms of cooperation

As a rule, providers charge several fees:

  • for storage of goods (per m³);
  • for picking one order;
  • for additional services: labeling, packaging, inventory.

Calculate the profitability of fulfillment for your sales volume and speed. Communication with management also plays an important role: make sure there is customer support in case urgent issues arise.

How fulfillment helps businesses save money

We have described the main advantages of outsourcing the process. Now it’s time to look at statistics and figures. About 74% of consumers consider free or low-cost delivery to be one of the key factors when making a purchase. Fulfillment helps speed up and reduce the cost of logistics:

  1. The cost of sending a parcel through an operator can be 15-20% cheaper.
  2. Fulfillment warehouses purchase packaging materials in bulk, which reduces packaging costs.
  3. Savings on staff and rent. In the low season, you don’t have to “keep” empty square meters and pay employees. With a provider, you pay only for the occupied space and order picking.
  4. No costs for warehouse automation. The business does not invest in WMS systems, scanners, forklifts, etc.

The overall savings for small and medium-sized businesses range between 10%-30% (of total logistics costs). This is a strong reason to use fulfillment! DiFFreight will help you choose the best model and also provide prep center and cross-docking services for international shipments.

FAQ - popular questions 

1. What is fulfillment and how does it work for marketplaces?

Fulfillment is a full-cycle order processing service: receiving goods, warehousing, packing, shipping, and handling returns. The seller stores products at the fulfillment center, and the provider manages all logistics tasks.

2. Why should sellers use fulfillment services?

It saves time and resources — no need to rent a warehouse or manage shipping manually. It’s especially useful for sellers working on platforms like Amazon, eBay, Rozetka, or Prom.ua.

3. How to choose the right fulfillment partner?

Check the company’s experience, speed of order processing, pricing, and marketplace integrations. A good partner offers its own warehouse, online tracking, and 24/7 support.

4. How much does fulfillment cost?

Pricing depends on storage space, order volume, and product type. On average, it ranges from ₴15 to ₴40 per processed order. You can request an exact quote from the provider.

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