Ecommerce Ecommerce Logistics and Fulfillment

Question 1

What does 'fulfillment' mean in ecommerce operations?

Accepted Answer

The complete process of receiving, processing, picking, packing, and shipping customer orders

Answer

Writing product descriptions

Answer

Managing customer service tickets

Answer

Processing payment refunds

Question 2

What is a third-party logistics provider (3PL)?

Accepted Answer

An outsourced company that handles warehousing, picking, packing, and shipping for ecommerce merchants

Answer

A company that manufactures products on behalf of a retailer

Answer

A freight broker that negotiates carrier rates

Answer

A returns management platform

Question 3

What is dropshipping in ecommerce?

Accepted Answer

Selling products you don't stock — the supplier ships directly to the customer when an order is placed

Answer

Offering free shipping on orders that meet a minimum threshold

Answer

Shipping oversized freight via specialized carriers

Answer

Automatically discounting slow-moving inventory

Question 4

What does SKU stand for in inventory management?

Accepted Answer

Stock Keeping Unit

Answer

Sales Keeping Utility

Answer

Shipment Keyed Update

Answer

Store Katalog Unit

Question 5

What is the primary benefit of having multiple fulfillment centers distributed across the US?

Accepted Answer

Reduced shipping times and costs by placing inventory closer to customers

Answer

Lower product manufacturing costs

Answer

Easier returns processing in one central location

Answer

Simplified customs documentation

Question 6

What is a return merchandise authorization (RMA)?

Accepted Answer

A pre-approved process and tracking number that allows a customer to return a product

Answer

A discount code issued to a returning customer

Answer

An automated email confirming a refund was processed

Answer

A re-stocking fee charged to the customer