In addition, e-commerce fulfillment services can be managed in-house by the online merchant too. Several consumers prefer ordering products online over in-store shopping due to several benefits offered in terms of convenience, cost, variety of choices, and lead time. E-commerce businesses significantly depend upon the warehousing and shipping capabilities to get products transported from manufacturing units/retailers to end-users in a shorter lead time. Traditionally warehousing was highly labor-intensive, however, in recent years, merchants have begun automating operations within the aisles of modern warehouses to minimize human intervention and thereby improve fulfillment productivity and reduce order delivery time.
For instance, Amazon.com, Inc. uses robots in its fulfillment centers to assist associates in performing operations and drive faster shipping times. With the majority of online purchasing sales coming from the urban area, and consumers increasingly demanding product delivery in the shortest possible turnaround time, the location of a fulfillment center is of strategic importance to e-commerce companies. Having centers near major cities that not only house products, but also perform other fulfillment services like sorting, bundling, labeling, and shipping helps players deliver products in a shorter turnaround time and win customers’ confidence.