In the past, a fulfillment center was typically associated with filling larger commercial orders to a retailer or distributor.
Today, with the growth of ecommerce, there are fulfillment centers that strictly focus on shipping small parcels direct-to-consumers (DTC).
[citation needed] A subset of ecommerce known as drop shipping, a type of product fulfillment that occurs directly from manufacturers to consumers via 3rd party retail websites, utilizes the manufacturer's or a wholesaler's fulfillment centers to deliver goods to the customer.
This is followed by the onward sale of the goods to customers in the UK taking place without the correct amounts of UK VAT being paid" and believes that registering fulfillment houses and requiring due diligence and record-keeping is "part of the solution".
[5] Provision for this "Fulfillment House Due Diligence Scheme" (FHDDS) was included in sections 48 to 59 of the Finance Bill 2017, introduced into the UK Parliament in September 2017.