In this model, the sellers send the stock to a Fulfillment centre (FC) & order processing is carried out by an FC partner. The FC is responsible for receiving the orders, packing and shipping the products to the customer.
Pros:
No order processing delays – Fulfillment centres have the ability to process orders & dispatch products within a few hours. Thus, the seller is not penalized for delays.
Reduced product returns – The orders are checked thoroughly before sending out for deliveries. The probability of dispatching incorrectly sized products reduces.
Improved customer experience – Quicker deliveries enhance customer satisfaction thereby increasing seller ratings & establishing trust with the consumers.