eMarketplace Distribution Centers
How to Set Up Warehouse Inventory
In a marketplace, including buying groups and vendors with drop shipping, there will be warehouses, fulfillment locations, and distribution centers, where shipments and items are processed. There’s a marriage of data between the sellers, the suppliers, and the marketplace fulfillment and logistics components.
A great example of this is Amazon. Amazon has extensive warehousing and distribution centers where they can take the inventory for certain sellers, store it for them, and put it into their inventory. Then they use those warehouses as distribution centers so that the lead times to distribute and fulfill inventory for a vendor or seller is reduced dramatically.
This is a pretty common theme as scale up your marketplace, is this ability to fulfill at scale, and enabling inventory to be distributed across your infrastructure, even though it may not technically be inventory that you directly own.