fulfillment services providers
Definition
Fulfillment services providers are third-party companies that store your products, pack orders, and ship them directly to your customers on your behalf. You send your inventory to their warehouse, and they handle the physical work of getting products from that warehouse to your buyers. Many small online businesses use these companies so they can focus on sales and marketing instead of managing shipping and storage.
Example
If you sell handmade candles online and hire a fulfillment company to store 500 units in their warehouse and ship each order as it comes in, that company is your fulfillment services provider.
Watch Out
Your contract with a fulfillment provider should clearly spell out who is responsible if products are damaged, lost, or shipped incorrectly, because you will still be the one answering to your angry customers.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.