Managing shipping and returns continues to be a significant challenge for retailers, with online order return rates averaging 21% higher than in-store purchase returns, according to NRF’s latest study. Combined with tighter margins, retailers must find innovative and cost-efficient shipping solutions to stay ahead of the competition. Rithum’s industry-leading Delivery Solutions can help retailers solve these challenges while expanding their business profitably. Discover how our features, including Shipping Optimization and Delivery Promise can help retailers optimize costs and provide precise delivery dates for a seamless and satisfying customer experience.

Want to learn more? Visit us at NRF 2025 in New York at the Jacob Javits Convention Center, January 11-14, at booth #4139.

Rithum’s Solutions for Smarter Shipping

Shipping Optimization: Optimize costs by selecting the best shipping method

• What is Shipping Optimization? Rithum leverages supplier data to automatically select the best warehouse and shipment method for each order to ensure on-time delivery for the lowest price. According to Rithum data, Shipping Optimization saves retailers on average 10% on 3P shipping costs, or millions in savings each year.
• How it works: Through Rithum’s existing dropship integration, Shipping Optimization leverages suppliers’ warehouse inventory and locations to find the optimal origin for each shipment. Using catalog data to determine package size and weight, Shipping Optimization gets shipping cost and delivery dates directly from carriers. The best method can then be selected and sent to the supplier.

Delivery Promise: Provides precise delivery dates for an enhanced customer experience

• What is Delivery Promise? Delivery Promise helps retailers increase conversions by providing customers with accurate and timely delivery dates.
• How it works: Machine learning models predict order processing and transit times to determine estimated delivery dates based on real-time data including order backlogs, warehouse fill rates and weather conditions. This is combined with dozens of historical supplier and carrier performance predictors to further refine delivery estimates, ensuring customers know exactly when to expect their orders.

Meet us at NRF 2025

Discover how Rithum’s delivery solutions can help you stay competitive in an evolving retail landscape. Visit us at booth #4139 during NRF 2025 or schedule a meeting here.

The post How Retailers Can Optimize Shipping – Join Rithum at NRF 2025 appeared first on Rithum.

Rithum research confirms what you may have known for awhile: Marketplaces are hot right now and will continue to grow. We dare say they’ve become an essential avenue to grow profits significantly. 

But it’s not as simple as flipping a switch and reaping the rewards.

Launching new marketplace channels takes work — and includes several fees you may not have considered. Could they be eating into your profits? It’s important to know what fees you’re paying, why you’re paying them and how they’ll impact your success long term.

Types of Marketplace Fees

There are different types of marketplace fees — and each channel has its own mix. In general, fees fall under the following categories:

Membership fees

Membership or subscription fees are those required to simply join the marketplace. Marketplaces like Amazon, Walmart, eBay, Etsy and Target Plus (through invite-only) all offer free seller accounts, but they’ll only get you so far. If you want to add services like bulk listing or customization tools, you’ll need to upgrade to a paid account.

Listing fees

Listing (or insertion) fees are charges for every product you post on the marketplace’s site, regardless of whether or not it sells. These fees are pretty low per SKU but can add up to a significant amount depending on how many you list. Walmart Marketplace does not charge listing fees and Amazon is free to list up to a certain volume, but the marketplaces that do charge them often boast more selective, high quality catalogs.  

Commission Fees

Referral (or commission) fees are in addition to any listing fees and are assessed when an item sells. It is generally a percentage of the product price instead of a flat fee. Etsy charges a 6.5% “transaction fee” (assessed at checkout) across all items, while Amazon, Walmart, Target and eBay take a referral or “final value fee” that varies by product category. 

Payment processing fees

Some marketplaces charge sellers to use their payment processing services. These may vary based on the merchant’s location (domestic or international) or buyer’s credit card type, but is usually a percentage of the subtotal. Whereas sellers and payment processors (e.g., Visa, Mastercard or American Express) usually work directly with each other, some marketplaces choose to handle the processing for their vendors for a fee instead. 

Shipping fees 

Most marketplaces allow you to set your own shipping rates. You may opt to pass your exact shipping expenses on to the buyer, or encourage more sales by offering free shipping. This is different on Amazon, where standard sellers must abide by the marketplace’s category-specific shipping rates unless they upgrade to a professional account.

Fulfillment fees

Fulfillment is up to each individual seller, but there are pros and cons to each strategy. In-house fulfillment can save you from paying an outside service, but it also means spending more time (and money) in processing and employee resources. Third-party fulfillment services like Fulfillment by Amazon (FBA), Walmart Fulfillment Services or other third-party logistics providers (3PL) handle it all for you, but they charge fees — and not always as a lump sum either. This may include long-term storage fees, removal order fees or even unplanned service fees.

Rithum Helps You Balance Fees with Marketplace Success

No one likes fees, but they do serve a purpose. They allow marketplaces to offer you channel-specific perks, increase convenience and even bring more sales your way. The trick is choosing the channels with fee structures that best suit your needs.

Rithum supports more than 400 channels. Our experts know the ins and outs of every marketplace and which ones are the best fit for your brand. If you’re looking for a way to expand beyond your own website, store or sole marketplace, we can ensure your successful expansion in 2023. 

Want to explore on your own? Our Commerce Network makes channel discovery and onboarding easy by connecting sellers and marketplaces in one platform. The offering is free to Rithum customers and gives you the information you need up front to make informed decisions about a marketplace’s selling categories, fees, marketing content and more. Contact us to learn more or request a demo with our team of e-commerce experts today to get started.

The post Understanding the Most Common E-Commerce Marketplace Fees appeared first on Rithum.