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A distribution center is a third-party service provider that processes and sends products purchased by your customers. Warehouses handle the mechanics of getting an order to a customer’s door, so you don’t have to package, address, or ship each order yourself.
The way it works is simple: you first sign a contract with a shipping center to process orders placed on your website. Storage space prices should be relatively the same as if you chose to put all your inventory in one bin because half the inventory takes up half the floor space. You can browse https://shiphype.com/fulfillment-center/ to get more information about the top fulfillment center in Toronto.
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This is how this system can help you. First, you provide a flat fee and fixed delivery time for your website which will cover the cost of coastal shipping, as well as the maximum delivery time for the distance. That means your customers pay for maximum shipping and expect orders in maximum time.
Orders are then processed from warehouses located in the nearest half of the customer’s country, literally cutting shipping distance and time in half for nearly all orders. In the worst case, the customer will be the furthest away from your only warehouse and you will pay the maximum amount.
Remember, you no longer have to worry about processing your orders or managing staff and almost anyone can see the benefits. Contracting with a utility that operates multiple warehouses is good business.