With over 80% of eCommerce businesses relying on third-party logistics (3PL) providers, outsourcing fulfilment is becoming a strategic necessity rather than a choice. Whether you’re struggling with limited storage, increasing order volumes, or narrow shipping margins, a reliable fulfilment partner can streamline operations and enhance customer satisfaction.
This guide explores everything you need to know about fulfilment services to help you make the right decision for your business.
Introduction to Fulfilment Services
Fulfilment services encompass the entire process of storing, managing, packing, and shipping products on behalf of a business. These services are commonly handled by the businesses themselves or provided by third-party logistics (3PL) companies, which handle everything from warehousing to last-mile delivery, ensuring that orders reach customers efficiently.
As a global trading hub, the UK plays a crucial role in cross-border eCommerce, offering seamless access to European and international markets. UK fulfilment services provide businesses with strategic warehousing, automated processing, and optimised shipping solutions, making it easier to expand without logistical bottlenecks.
The Role of Fulfilment Services in E-Commerce
Fulfilment services are the driving force behind eCommerce growth, ensuring businesses can meet consumer demands without logistical roadblocks. Imagine a UK-based skincare brand selling internationally—handling thousands of orders daily, managing inventory, and ensuring timely delivery can be overwhelming. A fulfilment partner takes over these tasks, storing stock in strategically located warehouses, automatically processing orders, and shipping them efficiently.
A real-time example is ASOS, one of the UK’s largest online fashion retailers. ASOS operates multiple fulfilment centres worldwide to guarantee rapid order dispatch. Without a streamlined fulfilment network, the brand would struggle with delayed shipments and dissatisfied customers. Similarly, smaller eCommerce brands leverage third-party fulfilment services to scale operations without investing in warehouses, staffing, or complex logistics infrastructure.
Core Components of Fulfilment Services
Fulfilment services provide countless core components. The detailed fulfilment process is as follows
1. Inventory Management
A well-managed inventory is the foundation of any fulfilment service. Warehouse fulfilment services play a crucial role in maintaining accurate stock levels, preventing overstocking or stockouts. By integrating real-time tracking systems, businesses can ensure that their inventory is always updated, reducing errors and optimising storage efficiency.
2. Storage & Fulfilment
Beyond just storing goods, storage and fulfilment services streamline inventory tracking. Smart fulfilment centres utilise barcode scanning, RFID technology, and cloud-based inventory management tools to maintain a transparent supply chain. This integration allows businesses to monitor stock movement, restock in time, and manage demand fluctuations effectively.
3. Order Processing
Once an order is placed, fulfilment service centres spring into action. Whether handling bulk orders or single-item dispatches, the process involves
- Order verification to ensure correctness.
- Product allocation from the nearest warehouse to minimise shipping time.
- Automated sorting for swift processing and error-free order fulfilment.
- Quality checks to ensure products meet customer expectations.
4. Role of Automation
Technology-driven automation is transforming the e-commerce fulfilment landscape. AI-powered smart sorting, conveyor belt systems, and robotic pickers accelerate processing speed while automated inventory updates eliminate manual errors. For businesses operating in the USA, automation helps meet high order volumes efficiently, ensuring quicker deliveries and reduced operational costs.
5. Pick and Pack
Different pick and pack fulfilment techniques cater to varying business needs
- Piece Picking – Suitable for small orders, selecting items individually.
- Batch Picking – Efficient for multiple orders containing similar products.
- Zone Picking – Assigning specific areas to fulfilment staff for faster order processing.
- Wave Picking – Coordinating multiple pickers to streamline bulk orders.
For businesses dealing with fragile or unique products, customised fulfilment solutions ensure safe packaging, reducing damage risks and maintaining product integrity.
6. Shipping & Delivery
Once packed, orders move towards global fulfilment services, where international shipping logistics come into play. Fulfilment centres coordinate with multiple carriers to optimise shipping routes, ensuring cost-effective and timely cross-border deliveries.
The last-mile delivery phase is crucial—distribution and fulfilment services ensure accurate address verification, optimised route planning, and real-time tracking, significantly enhancing customer satisfaction.
7. Returns Management (Reverse Logistics)
Efficient returns handling is an integral part of fulfilment services, particularly for small businesses in the UK that rely on seamless logistics. The process involves
- Inspection of returned goods for restocking or disposal.
- Automated refunds/exchanges to maintain customer trust.
- Data analysis on returns to identify patterns and reduce return rates.
By implementing custom fulfilment strategies, businesses can minimise product returns, address common customer concerns, and improve overall service quality.
Models of Fulfilment Services
There are many methods of fulfilling orders across channels. Here are some of the most common strategies that brands use to pick, pack, and ship orders to customers.
1. Self-Fulfilment Servies
Self-fulfilment, or in-house fulfilment, involves handling all logistics internally, from warehousing and inventory management to picking, packing, and shipping. This model suits small businesses that want full control over their operations but can become unsustainable as order volumes grow. While it eliminates third-party costs, it requires investment in storage, staffing, and shipping arrangements.
2. 3PL Fulfilment Services (Third-Party Logistics)
3PL fulfilment services, also called outsourcing fulfilment, provide warehousing, order processing, and shipping solutions. They help businesses scale efficiently without the hassle of maintaining logistics infrastructure. Businesses partner with fulfilment companies so they don’t have to create their own infrastructure or warehousing space, hire their own workforce, manage a large-scale operation, invest in equipment and technology, and pay regular operational costs
3. Dropship Fulfilment Services
Dropship fulfilment services have revolutionized the industry by eliminating the need for warehousing. In this model, products are shipped directly from suppliers to customers, reducing storage costs and risks associated with overstocking. This is particularly beneficial for businesses testing new product lines or those lacking physical storage space.
4. Hybrid Fulfilment Services
Hybrid fulfilment blends self-fulfilment or 3PL fulfilment services with external logistics solutions. This model allows businesses to fulfil high-demand products from their own warehouses while outsourcing slower-moving inventory to third parties. It provides flexibility, cost savings, and the ability to optimize fulfilment based on demand patterns.
5. Industry-Specific Fulfillment Services
Different industries require specialized fulfilment services tailored to their needs. Apparel fulfilment services cater to fashion brands by handling SKU variations and returns. Book fulfilment services support publishers with careful packaging and bulk shipping. All beauty fulfilment services ensure skincare and cosmetics products are stored and shipped under ideal conditions, maintaining product integrity.
12 Industries that Need Third-Party Fulfilment Services
From beauty products to sportswear, industries with high demand for fulfilment services often require specialised handling, secure packaging, and optimised distribution networks to meet consumer expectations.
1. Beauty Fulfilment Services
The beauty industry thrives on precision, fast shipping, and high customer expectations, making beauty fulfilment a vital part of supply chain management. Businesses dealing in beauty product fulfilment require climate-controlled storage, custom packaging, and efficient order processing to ensure product integrity. Companies that provide beauty and cosmetics fulfilment solutions help brands manage bulk orders while maintaining product quality.
2. Cosmetic Fulfilment Services
Moving forward, the cosmetics industry relies on cosmetics fulfilment solutions to ensure delicate and high-value products reach customers in perfect condition. Many cosmetic fulfilment companies offer custom packaging, product bundling, and temperature-controlled storage to maintain product quality. Businesses requiring order fulfilment for cosmetics benefit from automated inventory management and real-time tracking systems.
3. Fashion Fulfilment Services
Likewise, fast-moving fashion brands require fashion fulfilment solutions to handle high order volumes, seasonal inventory changes, and returns processing. A fashion fulfilment centre ensures smooth logistics by integrating real-time inventory tracking and same-day dispatch options. Established fashion fulfilment companies also provide sustainable packaging options to align with eco-conscious consumer preferences.
4. Food and Drink Fulfilment Services
According to the Food and Drink Federation, the UK’s food logistics industry continues to expand due to the growing popularity of online grocery shopping. So, food companies require specialised food and drink fulfilment solutions, including temperature-controlled storage and express delivery options. Fulfilment providers in this sector help brands manage seasonal demand fluctuations and optimise delivery routes for fresh produce and packaged goods. However, businesses engaged in food fulfilment must adhere to strict regulatory standards to ensure product safety and compliance.
5. Book Fulfilment Services
With the rise of online book sales, primarily through platforms like Amazon, book fulfilment services have become essential for publishing and distribution. In the UK, book fulfilment service providers also assist self-publishers and bookstores in handling bulk shipments. The integration of book printing and fulfilment further enhances the supply chain, allowing for on-demand printing and immediate dispatch.
6. Pet Supplies Fulfilment Services
Just like books, pet supplies fulfilment services have gained traction among online pet stores and speciality brands with the increasing trend of pet ownership. From bulk pet food orders to custom pet accessories, fulfilment providers in this sector offer warehousing, packaging, and efficient shipping solutions.
7. Sportswear Fulfilment Services
Next, sports and activewear brands require sportswear fulfilment services to manage high SKU counts, rapid inventory turnover, and seasonal demand spikes. Companies offering sportswear fulfilment services ensure accurate order processing, real-time stock updates, and seamless returns management. With the athleisure market growing, efficient fulfilment strategies help brands scale without logistical bottlenecks.
8. Subscription Box Fulfilment Services
Subscription-based businesses depend on subscription box fulfilment solutions to manage recurring deliveries, product curation, and packaging. In the UK, subscription box fulfilment companies support businesses in scaling their operations efficiently. According to McKinsey, the subscription commerce market is growing rapidly, highlighting the importance of seamless fulfilment operations.
9. Toy and Game Fulfilment Services
Retailers and manufacturers in the toy industry require toy and game fulfilment solutions to ensure the timely delivery of seasonal and high-demand products. Toys and games fulfilment providers offer warehousing, inventory management, and last-mile delivery services particularly associated with fulfilment services.
10. Supplement Fulfilment Services
In the last but not least of industry particulars, supplement fulfilment companies provide batch tracking, temperature-controlled storage, and secure packaging for fragile supplements. A supplement fulfilment centre helps businesses streamline logistics, ensuring customers receive their health products without delays.
11. D2C Fulfilment Services
Direct-to-consumer – D2C is not associated with the particular genre almost all industries work as D2C brands. Thus, they need D2C fulfilment services to manage inventory, streamline logistics, and maintain a smooth customer experience. Many D2C fulfilment companies offer multi-warehouse solutions, automated stock management, and last-mile delivery tracking. The surge in e-commerce startups has amplified the demand for fast and flexible fulfilment options, ensuring brands can scale their operations without logistical hurdles.
12. Multichannel Fulfilment Services
Unlike D2C, retailers selling across multiple platforms benefit from multichannel fulfilment solutions that integrate inventory management, shipping, and order tracking. According to Retail Gazette, the ability to manage multiple sales channels efficiently is a key factor in e-commerce success The range multichannel fulfilment centre is a critical hub for businesses needing seamless stock coordination across different marketplaces. Companies offering multichannel order fulfilment ensure consistent product availability and optimised logistics.
Choosing the Right Fulfilment Services Provider
With a vast number of fulfilment providers available, selecting the right partner for your business requires careful consideration. Whether you’re exploring 3PL services for the first time or planning to transition to a new provider, evaluating the right factors is essential for making a strategic decision.
Here are key recommendations to determine if outsourcing fulfilment aligns with your business needs
- For startups, leveraging fulfilment services can help scale operations without heavy infrastructure investments, providing flexibility to grow without logistical bottlenecks.
- Inventory-heavy businesses should prioritise warehousing and fulfilment services to optimise storage, streamline stock management, and maintain smooth order processing.
- Scaling fulfilment in-house can be challenging—if demand is increasing beyond manageable levels, a 3PL can help streamline processes.
- Investing in warehouses, equipment, and labour for in-house fulfilment requires significant capital. If this isn’t feasible, outsourcing can provide a scalable and cost-effective alternative.
- If you want UK-based fulfilment services, evaluate UK fulfilment service providers based on efficiency and cost-effectiveness to ensure they align with your business needs and budget constraints.
- Comparing UK fulfilment services with international providers can reveal differences in shipping speed, cost, and regulatory compliance, allowing businesses to choose the best logistics strategy.
Costs and Pricing of Fulfillment Services
How much fulfilment services cost does not go straight forward. It involves the costs of the whole supply chain including storage, picking, packing, shipping, delivery, and return management.
1. Storage Fees
One of the primary costs in fulfilment services is storage fees, which depend on the volume of goods stored in fulfilment centres. Businesses that maintain excess inventory for long periods often face long-term storage fees, making it essential to optimise inventory management and avoid unnecessary costs.
2. Pick and Pack Fees
The process of picking items from storage and packaging them for shipment incurs a charge per order. The complexity of an order, such as multiple items requiring individual packaging or custom wrapping, can increase the cost. Fulfilment providers charge businesses based on the number of items picked and packed, which is why companies should focus on streamlining order processing to manage expenses efficiently.
3. Shipping and Delivery Costs
Coming to shipping and delivery, its cost depends on such as package weight, dimensions, delivery speed, and destination. Businesses working with fulfilment centres that have strong carrier partnerships often benefit from bulk shipping discounts, which can help reduce the overall cost of logistics.
4. Returns Management
Returns management is another hidden cost that e-commerce businesses often overlook. The process of handling returns, inspecting items, and restocking inventory can add significant operational expenses. Industries such as fashion and electronics tend to experience higher return rates, making it crucial for businesses to adopt strategies that reduce returns while maintaining a positive customer experience.
5. Additional Services and Pricing Models
Many fulfilment providers offer additional services such as kitting, labelling, custom packaging, and gift wrapping, each of which comes at an extra cost. Pricing models vary across fulfilment providers, with some operating on a pay-as-you-go structure where businesses are charged per order, making it suitable for startups or seasonal sellers. Others prefer a subscription-based model where a fixed monthly fee covers a specific number of orders, while larger enterprises negotiate custom pricing agreements tailored to their business needs.
Challenges in the Fulfilment Industry
When a business undergoes the fulfilment process, it has to face countless challenges including
1. Supply Chain Disruptions
Despite technological advancements, the fulfilment industry faces numerous challenges that disrupt supply chain operations. External factors such as pandemics, geopolitical tensions, and natural disasters cause sourcing and shipping delays, resulting in order backlogs and increased costs.
2. Rising Operational Costs
The rising costs of warehousing space, labour, and fuel place significant financial pressure on businesses. E-commerce brands struggle to absorb these costs while maintaining competitive pricing for consumers. As operational costs continue to climb, fulfilment centres are exploring automation and optimisation techniques to improve efficiency and cost-effectiveness.
3. Managing Returns Efficiently
High return rates can strain warehouse operations, increase labour costs, and affect profit margins. Companies must implement effective return policies, leverage AI-driven insights to reduce return rates and streamline the reverse logistics process to handle returns efficiently.
4. Last-Mile Delivery Complexities
Moving further, consumers expect fast, often free, shipping, creating immense pressure on businesses to deliver cost-effectively. Urban congestion, unpredictable demand spikes, and delivery route inefficiencies make last-mile logistics particularly challenging for e-commerce companies.
5. Technology Integration and Automation
Many businesses still rely on outdated fulfilment methods that result in inefficiencies and errors. The adoption of AI-driven warehouse automation and predictive analytics is crucial for streamlining order processing. However, the cost of implementing these technologies can be a barrier for small and mid-sized businesses, slowing the transition to smarter fulfilment solutions.
Future Trends in Fulfilment Services
The following are some future trends the businesses and fulfilment centres are adapting with time for providing smooth fulfilment services
- Fulfilment centres are adopting AI-powered sorting systems, robotic picking technology, and predictive analytics to optimise operations.
- Many businesses are moving towards eco-friendly packaging, carbon-neutral shipping, and green warehousing solutions such as solar-powered fulfilment centres.
- Instead of committing to long-term warehouse leases, businesses are embracing on-demand warehousing, where fulfilment operations scale dynamically based on seasonal demand.
- The rise of drones, autonomous vehicles, and smart delivery lockers is revolutionising last-mile logistics. Businesses are exploring hyperlocal fulfilment strategies by placing inventory closer to urban centres to improve delivery speed and efficiency.
- Fulfilment is evolving beyond logistics, with businesses offering custom packaging, branded inserts, and AI-driven product recommendations to enhance customer experiences.
Case Studies of Successful Fulfilment Strategies
1. Amazon’s Prime Fulfilment Centre
Amazon has set the benchmark for fulfilment excellence through its Prime-focused strategy, which ensures same-day and next-day deliveries. By leveraging regional fulfilment centres and AI-driven automation, Amazon has streamlined order processing and optimised last-mile logistics.
2. Kun Fulfilment Fulfilment Services Provices
Kun Fulfilment has positioned itself as a leading fulfilment provider for businesses in Asia looking to enter the UK market. By offering bulk storage, online order processing, and last-mile shipping label applications, Kun Fulfilment helps brands scale efficiently. Its automated order management system and virtual carrier network improve communication between e-commerce businesses and their customers. Additionally, its focus on cost-effective logistics, strategic warehouse locations, and exceptional customer support makes it an ideal partner for companies seeking reliable fulfilment services in the UK.
3. Shopify’s Distributed Fulfilment Network
Shopify has invested in a decentralised fulfilment model, allowing e-commerce merchants to store inventory closer to their customers. This reduces shipping costs and improves delivery speed, making small and medium-sized businesses more competitive in the e-commerce space.
Bottomline
Fulfilment services are the backbone of modern logistics, ensuring businesses can store, manage, and ship inventory efficiently. With the rapid growth of eCommerce, companies yearn to meet increasing consumer demands for fast and affordable delivery. Going for the 3PL fulfilment services that align best with your interest is the best possible choice.
