E-Commerce Fulfillment: Fork in the Road

Between giants and startups, what’s left in the middle?

Benjamin Gordon
Supply Chains

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Fork in the road for e-commerce fulfillment

In the world of e-commerce fulfillment, we have experienced a golden age for logistics providers. For two decades, the market has grown at a rate of better than 20 percent, fueled by the explosion of e-commerce providers like Amazon. A rising tide lifted all boats, and thousands of e-commerce fulfillment companies benefited from the broad range of successful e-tailers.

However, 2019 was a turning point. This golden age is about to change. On the one hand, new disruptors like ShipBob are using technology to provide lower-cost e-commerce fulfillment solutions. On the other hand, large consolidators like Radial Commerce are deploying capital to acquire competitors and pursue global scale.

When e-commerce back-end solution provider ShipBob raised $63m (including $40m in September 2018), it marked a new challenge. And when Belgian national post powerhouse bpost acquired the 24-fulfillment center Radial for $820m in late 2017, it reflected a massive infusion of global capital into the sector.

Meanwhile, customers continue to expect faster response times. First, Amazon disrupted the status quo with Amazon Prime’s two-day shipping. Target countered with acquisitions of Grand Junction and Shipt, seeking to beat…

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Benjamin Gordon
Supply Chains

Ben Gordon, CEO of Cambridge Capital and BGSA. Investor in logistics and supply chain technology. Published at Fortune and CNBC. http://bengordonpalmbeach.com/