What Is 3pl In Supply Chain Management

Many stores are also carrying greater inventory to not only support online orders but in-store pickup. Finding storage space for the extra goods and avoiding excess inventories become challenges.

According to a 2020 market analysis report by Grand View Research, the global e-commerce fulfillment services market was worth $69.68 billion in 2019. By 2027, the market is expected to reach $113.59 billion. This projected increase in value is largely contributed to the number of speedy, convenient, and reliable e-commerce shipping and fulfillment options that delight and convert consumers into regular online shoppers.

Lawrence has been covering engineering subjects – with a focus on motorsport technology – since 2007 and has edited and contributed to a variety of international titles. Currently, he is responsible for content across UKI Media & Events' portfolio of websites while also writing for the company's print titles.

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.

Subscription box fulfilment services are a great way to ensure fast shipping and delivery. Customers can schedule their orders in advance, and the products will be delivered at specific times. These services can also help to increase customer satisfaction. The subscription box industry is expected to grow to PS1.8 billion in the next few years.

Service portfolio extension remains the premier strategy adopted by the fulfillment service providers. For instance, in February 2019, United Parcel Service of America, Inc. launched a new e-fulfillment platform. This new platform connects the company’s fulfillment service centers to small- and medium-sized businesses on 21 online marketplaces, including Amazon.com, Inc. and Etsy, Inc.

Check out how the award winning sleeping bags, Morrison Outdoors scaled their business by partnering with ShipNetwork for fulfillment and shipping. Trust the experts to give your customers the shipping experience they deserve, all while saving you time and money.

It will be interesting to see if the changes and improvements in inventory turn compensate for the reduced customer experience, increased labor and inefficiencies inherent in trying to do two things with a single store location.