Fulfillment Services -- Benefits, Challenges Of Fulfillment

Nothing Is Free Anymore

"The first challenge in setting up a profitable fulfillment operation is transitioning from a 'free storage' business model to a revenue-based model," she notes.

A key part of developing a revenue-based model is to implement an appropriate pricing strategy. "Understanding the full costs of fulfillment can be difficult, but you need to understand the costs in order to price at a profitable margin," adds Tolliver-Nigro. "Fulfillment is an entirely different business from printing or prepress, with different rules, requirements and cost structures."