Fulfilment continues to be an area where fights are being fought as exemplified by the recent results from The Royal Mail. Activity surrounding click and collect is at an all time high, exemplified by Amazon’s Tube Station pick up points and the Argos ebay Click and Collect service.
The financial pain of the fulfilment fight became obvious this week when Royal Mail shares slipped back on results. The reasons? Well Amazons removal of free delivery on items below £10, as well as the expansion of their own delivery services are being cited as the cause by Royal Mail.
Whether this is just a blip or a longer term challenge for the Royal Mail remains to be seen, but with so much at stake when it comes to ecommerce fulfilment it’s unlikely to be a situation that will be allowed to sort itself out.
So expect competition to increase in the fulfilment sector.