Global Fulfillment

What is Global Fulfillment?

Global Fulfillment utilizes in-country fulfillment centers/warehouses to fulfill goods within said country or country block. For example, if you have a global fulfillment center in Canada and a Canadian customer orders from you they will receive their good from the in-country warehouse. This differs from international shipping in that a customer would not worry about duty and tax since they goods have already been imported into said country. These shipments would appear as domestic shipments to a Canadian merchant.

When does global fulfillment make sense?

Global fulfillment suits sellers with steady demand in a specific country or region. Stocking inventory locally can shorten delivery times and lower per-order shipping costs, since parcels travel domestically. You import the inventory in bulk, so duties and taxes are handled at import.

What should you plan for?

Forecast demand carefully, because inventory sitting in a foreign warehouse ties up cash and can add storage fees. Depending on the country, you may also need to register for local taxes such as value-added tax (VAT).

Related terms: Ecommerce Fulfillment and International Shipping.

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