Many retailers are making changes in the way they do business, especially with the emergence of e-commerce and mobile retail. Order fulfillment initiatives are being sought after to meet the high online demand, not only from customers, but also between retailers. Sears is one example of a retailer rolling out a program that will meet the retailer order fulfillment demands and it just might work.
Internet Retailer reported that Sears Holdings will be launching Fulfilled By Sears Program. The program is designed to offer online and offline fulfillment services to other retailers in the US. It is going to be available to retailers who sell via Sears.com. “We have the ability to ship orders much faster and more cost-effectively than other sellers do based on our national footprint of stores and warehouses,” said Corporate Executive Vice President Imran Jooma. The Fulfilled By Sears is going to be a great move for Sears to increase their sales, as they take on expanding into warehousing services.
The new program will offer a pay-as-you-go service for all their retailers. This type of service will allow retailers to incur no fees unless they are storing product in the warehouse facilities. There will also be fees that will slightly differ for merchants that sell on Sears.com, from those that process orders outside of Sears.com. Both will have fees ranging from 45 cents to 60 cents per cubic foot. Merchants will enjoy a $1 per item pick and pack fee. However, outside client retailers will pay a $3 pick and pack fee. Merchants will pay a $39.99 monthly Sell on Sears plus sales commission to Fulfilled By Sears.
Fulfilled By Sears will provide shipping for their retailers as well. There will be an order-handling fee of $1.50 for ground, $7.50 for two-day shipments, and from 45 cents to $1.90 for next-day shipments. The higher fee for two-day shipments will be due for any air shipments retailers require for their order fulfillment. Their client retailers will have to handle having their product shipped to the Sears' fulfillment center.
Most notably about Fulfilled By Sears is it will be in competition against online giant, Amazon, which provides the same type of fulfillment services for their client retailers. Amazon has built distribution centers throughout the US and is set to roll out more this year. Many experts believe Amazon is gearing up to one day provide same-day delivery to its' customers in areas where it makes sense to do so nationwide.
Same-day couriers like A-1 Express can assist Fulfilled By Sears and its' retailers create a courier logistics solution. Whether is same-day shipping locally or long distances, the Miami Courier is able to pick up anything from small packages to palletized freight and deliver any distance from any fulfillment center throughout the US. A-1 Express is a viable partner for just-in-time inventory in local brick-and-mortar stores and can offer superior product return order fulfillment programs as well.
Reference: 3.22.13, Internet Retailer, Paul Demery, Sears rolls out the Fulfilled by Sears program for other retailers