best business structure for online retail

b. The global e-commerce fulfillment services market size was estimated at USD 86,449.97 million in 2021 and is expected to reach USD 96,257.94 million in 2022.

Thus, fulfillment centers remain a preferred choice for e-commerce companies that require efficient partners for their fulfillment operations. The ongoing COVID-19 pandemic has taken a severe toll on businesses across every sector, curbing profits and drying up cash flows and financial reserves. Electronic commerce companies and fulfillment centers are no exception to this as the industry suffered a minor setback during the pandemic initially due to supply chain disruptions and labor shortages. Thereafter, with consumers shunning in-store purchases and preferring to shop online, the surge in online orders did put an unprecedented strain on the logistics and transportation services of online merchants and distributors.

Shipping costs can be a concern for ecommerce businesses, and they can also affect your conversion rates. Third-party fulfillment companies often charge by the weight, volume, or dimensions of your product. Some services also offer prepaid return labels.

So in the right situations, it’s smart to have the local stores picking and packing, yet there may be a tipping point where it makes sense to have the centralized distribution. I refer to these retailers as “savvy” for a reason. They are smart enough to figure out what their best option is.

For more information on Rakuten Super Logistics, its order fulfillment services, and Xparcel Products, please visit https://www.shipnetwork.com/ With over 20 years of experience, we really know fulfillment. Give your customers the shipping experience they deserve.

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Over the past 20 years, RSL says it has successfully evolved with the ever-changing e-commerce industry to stay ahead in the order fulfillment industry and position itself as a leader in the 3PL business.