E-commerce sales initially spurred by the pandemic show no signs of slowing down, projected to continue to grow by double digits, up 17.9% in 2021 to $933.30 billion.
All that money isn’t just flowing into major retailers, though. Sales on marketplace sites, like those operated by Alibaba, Amazon, eBay and others, accounted for 62% of global web sales in 2020, with $773 billion sold through U.S. marketplaces alone.
It’s no surprise then, that a crop of companies has emerged to acquire and scale the most successful e-commerce marketplace brands. In fact, since April of 2020 more than 60 of these aggregators have raised almost $6 billion in funding, with the aim of applying economies of scale to functions like logistics and advertising.
Many of these marketplace-based brands rely on Fulfillment by Amazon (FBA), and are subject to the limitations of the service, including capacity limits, expensive inventory and long term storage fees, and a refusal of meltable inventory for more than half the year.
Marketplace aggregators are in need of alternative fulfillment and on-demand storage solutions – like Flowspace – that operate alongside FBA, providing additional flexibility and optionality for seasonal spikes or contingency planning.
Here’s how Flowspace does it:
FBA Prep and Replenishment
With nationwide network capacity and infinite scale, Flowspace can provide FBA prep and replenishment in any US geography. With fulfillment centers across the country, replenishments can be made quickly and strategically to avoid additional Amazon storage fees.
Flexible, On-Demand Storage
Flowspace’s distributed network means that storage is available where and when you need it. With no space minimums, e-commerce businesses can avoid overpaying for unneeded space, contributing to an efficient, scalable supply chain.
Native Integrations for Omnichannel and DTC Fulfillment
Flowspace’s native integrations with Amazon Seller Central, Shopify, and other e-commerce marketplaces enable direct to consumer fulfillment, providing FBA contingencies and diversification for omnichannel strategies.
One Partner, One Platform
Flowspace is the single partner that manages all relationships with fulfillment center operators, streamlining communication and reducing complications. The Flowspace platform offers a unified dashboard to manage warehousing and fulfillment for all portfolio brands.
Flowspace is the reliable e-commerce fulfillment platform partner that provides stability and control for aggregator companies. Those that plan now for the inevitable disruptions and further innovations in e-commerce will be outselling their short-sighted competitors when the time comes.
For more on Flowspace’s alternatives to FBA, check out this blog. To learn more about how Flowspace can help your company scale its supply chain strategies, click here.
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Written By:
Allison Champion
Allison Champion leads marketing communication at Flowspace, where she works to develop content that addresses the unique challenges facing modern brands in omnichannel eCommerce. She has more than a decade of experience in content development and marketing.
