As e-commerce becomes the pillar in our retail landscape, fulfillment businesses are becoming more important.
Fulfillment companies enable e-Commerce by processing order receipts, packing, delivering, and handling returns from clients. These businesses act as a third-party warehouse and their core responsibilities include preparing and shipping orders. Thus, they store goods until they are ready to send to stores and customers. If you are planning to start a fulfillment service, some of the services will include:
- Same day-delivery
- Customer support through chat, text, and phone call
- Complete order tracking from arrival at the fulfillment center to delivery to customer's door
- Custom API integration
- Climate-controlled storage space
To start a fulfillment center you need to find space, streamline with software, and set up and understand business KPIs with the target e-Commerce companies.
Here are some real life success stories of starting a fulfillment business:
1. ShipMonk ($300M/year)
Jan Bednar (from Fort Lauderdale, Florida, USA) started ShipMonk almost 10 years ago.
Hi! My name is Jan Bednar and I’m the CEO and founder of ShipMonk, a technology-driven fulfillment center based in South Florida.
Last year, we were named America’s Fastest Growing Fulfillment Center and scored a spot at #29 on Inc. 5000’s list of fastest growing companies. We made the list again this year at #154. With projected revenue of $60M for 2019, we absolutely can’t wait to see what else is in store for us!
2. Honest FulPhilment ($24M/year)
Philip Karageorgis (from Xinxiang, Henan, China) started Honest FulPhilment over 4 years ago.
Helloooooooooooooo!!! I’m Philip Karageorgis and I’m the founder of Honest FulPhilment - a sourcing, branding, and fulfillment company based in China, managed in the UK!
We’re lucky to see our revenue increase each quarter and look forward to when we can start actually running marketing campaigns on multiple platforms!
Learn more about starting a fulfillment business:
Where to start?
-> Fulfillment business plan
-> How to finance a fulfillment business?
-> How much does it cost to start a fulfillment business?
-> Pros and cons of a fulfillment business
-> How to get clients for a fulfillment business?
4. OTW Shipping ($3.6M/year)
Nick Malinowski (from Salt Lake City, UT, USA) started OTW Shipping over 3 years ago.
Hey there, Nick and Parker here! We co-founded OTW Shipping, an eCommerce fulfillment center, not too long ago in 2020. For those who don’t know what a fulfillment center is, we store inventory for online sellers and when they get orders we pack and ship them to their customers (similar to an Amazon warehouse). Our mission is to provide eCommerce brands with best-in-class fulfillment with a level of service and support that feels like your own personal warehouse team.
We officially launched in November of 2020 as a couple of broke college students and hit $1M in revenue in our first 12 months, shipping out over 120,000 packages. We are moving into 20,000 square feet this week and are on track to triple that number in the next 12 months!
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6. KO-Pack ($1.8M/year)
Payton LaCivita (from Chandler, AZ, USA) started KO-Pack over 3 years ago.
Hi Everyone! My name is Payton LaCivita and I am one of the co-owners at KO-Pack along with co-owners Loren Scott, Ken LaCivita, JP Patchett, and Rachel Kubel we operate our contract manufacturing, private label men’s grooming, and fulfillment services business.
We started our business in May of 2020 (yes… everyone shut down and we opened our doors) and have been steadily growing since then by 40-60% YoY growth. Each new month has been our best month since opening and we average $150k per month and growing.
Hey! 👋 I'm Pat Walls, the founder of Starter Story.
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