lgn1 - 4:51 pm on May 5, 2012 (gmt 0)

Yes, third party fullfillment is catching on. You move all your stock to a third party warehouse, that may be dealing with hundred of clients. These fullfillment companies are getting huge shipping discounts due the volume, and the fact that FedEx comes by to pickup a preloaded trailer.

This reduces your fullfillments costs to below what you can do inhouse. The only problem is that you lose control over quality. One bad picker, can result in a lot of screwed up orders. However, the better companies keep an eye on quality control, and if a picker keeps screwing up, they are terminated.