Brands can’t keep up because for them, fast shipping means expensive shipping.
The only way a merchant can affordably power fast shipping for their products is to adopt a distributed fulfillment model, like that of Amazon. Their famed distribution network now has close to 100 locations across the United States, and they strategically place inventory in multiple locations across the country. No matter where a customer is, Amazon has the product nearby.
Historically, merchants simply haven’t been able to adopt Amazon-like distributed fulfillment short of using Fulfilled by Amazon. If a merchant wants to do it themselves, then they need 4-5 locations to cover the whole country with 2-day shipping, and 10+ for 1-day shipping. That’s out of reach for all but the largest enterprises – and even large merchants are struggling to find warehouse space and labor to power their delivery networks today.
On the other hand, most 3PLs weren’t designed with eCommerce in mind, and so they struggle to provide affordable fast shipping for their clients. 66% of 3PLs in the United States have fewer than 3 warehouses, which isn’t enough even for 2-day shipping. So if a merchant signs up with one 3PL, they’ll have to expedite orders to cover the country with fast shipping. Alternatively, they might sign up with multiple 3PLs and try to stitch them together with complex OMS integrations. This overhead-intensive solution puts a band-aid on the issue, and it comes with high complexity, high failure rates, and high costs.
To level the playing field with Amazon, merchants need a modern fulfillment network that was designed for the rigors of fast & free eCommerce. The best modern networks will have 10 or more locations across the country, user-friendly software, native integrations with major eCommerce platforms and marketplaces, and more. They’ve been designed purposefully to power merchants’ growth with affordable fast shipping across all channels.
If you’d like to learn more about what to look for in a fulfillment provider, here’s a primer on how to choose the right 3PL for your Shopify store. And when you’re ready to evaluate competitors, here’s a 3PL RFP template that will help you make the right choice.
Cahoot’s fulfillment network is built for eCommerce. We’ll level the playing field with Amazon with affordable 1- and 2-day shipping – right on your DTC store.
Our innovative peer-to-peer model offers low-cost, fast fulfillment by design. We’re changing the industry by empowering merchants with excess warehouse space and resources to provide high-quality order fulfillment to other merchants. As a result, our pricing is typically lower than that of other top providers listed above, but we can beat them on fulfillment speed and reliability.
If you’d like to find out how Cahoot can help your business, please get in touch with us. We can’t wait for you to join our community and fight back against the big marketplaces.