Fourth, third-party fulfillment
Third-party fulfillment occurs when a logistics firm, such as Paylessprepcenter, selects, packs, and delivers orders on behalf of an Amazon merchant.
Because of the excellent pricing, many retailers opted for third-party fulfillment services.
Paylessprepcenter, for example, has hundreds of thousands of square feet of warehouse space spread around the country in multiple warehouses. Because fulfillment logistics companies process hundreds of thousands of orders every month, they may negotiate significant savings with carriers for the best shipping rates, as well as packaging and overall logistics expenses.
Without sacrificing control of the process, a third-party logistics provider can cut fulfillment and shipping expenses.