What fulfillment is and who needs it

Fulfillment in simple terms

Fulfillment is everything that happens to a product after the customer clicks “Place order”: find it in the warehouse, check it, pack it, label it and hand it over for delivery. A fulfillment operator takes on these operations, and the seller focuses on the product range, prices and marketing.

For a marketplace seller, fulfillment means outsourcing the warehouse. Instead of renting premises, hiring storekeepers and buying packaging, you pay for specific operations: a picked order, a prepared unit, storage space.

Which operations fulfillment includes

1. Receiving. Goods are counted, reconciled with the invoice and checked for defects.
2. Storage. Each unit gets a bin address in the WMS so it can be found quickly.
3. Order processing. The order comes from the marketplace automatically and the picker assembles it by scanner.
4. Packing and labeling. The product is packed to the marketplace requirements and labeled.
5. Dispatch. The order is handed to the marketplace, a courier or a pickup point.
6. Returns. Returned goods are inspected and, if in good condition, put back into stock.

Who needs fulfillment

Fulfillment pays off when the warehouse starts taking more time than sales. Typical signs:

• you or your staff spend several hours a day picking orders;
• mix-ups, delays and cancellations start hurting your store rating;
• on peak days — sales and holidays — orders don’t leave on time;
• you want to sell on several marketplaces but can’t split your stock;
• you are launching and don’t want to invest in a warehouse before testing demand.

FBS, FBO and FBW

With FBS, goods are stored by the fulfillment operator, who picks each order. With FBO (called FBW at Wildberries), goods are delivered to the marketplace warehouse in advance, and fulfillment prepares and ships these batches. A detailed comparison is in the article FBS or FBO: which to choose.

How much fulfillment costs in Kazakhstan

The price depends on the model, weight and volume. At Gistics, FBS order picking costs from 200 ₸ for items up to 0.5 kg, from 300 ₸ up to 1 kg and from 590 ₸ up to 5 kg. FBO shipment preparation costs from 150 to 300 ₸ per unit depending on batch size. Storage and non-standard packaging are charged separately. You can estimate your case in the calculator.

When comparing with your own warehouse, count not only rent but also salaries, payroll taxes, packaging, equipment, an inventory system and the cost of mistakes.

How to choose a fulfillment operator

• Is there an integration with your marketplaces, or will orders be transferred manually?
• Does the warehouse run on a WMS with bin-location storage and scanner picking?
• Is there a client dashboard with live stock?
• Is liability for your goods written into the contract?
• How many runs a day go to the marketplaces and how are returns handled?

Gistics answers “yes” to all of them: warehouses in Astana, Almaty and Shymkent, our own lo.gistics WMS and a contract with full liability.