Delivery & Fulfillment Archives | Rithum https://www.rithum.com/blog/category/delivery-fulfillment/ Powering the future of commerce Thu, 28 May 2026 00:42:04 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 What the Hormuz Straight disruption means for your commerce operations https://www.rithum.com/blog/strait-of-hormuz-disruption-commerce-operations/ https://www.rithum.com/blog/strait-of-hormuz-disruption-commerce-operations/#respond Thu, 02 Apr 2026 14:37:53 +0000 https://www.rithum.com/?p=5091 Reading Time: 4 minutesThe Strait of Hormuz—a 21-mile-wide channel between the Persian Gulf and global markets—has been effectively closed to commercial shipping since late February 2026. Over 150 vessels are anchored outside the strait,1 and for the first time in modern history both Middle East major maritime corridors are blocked at once.2  Negotiations are ongoing and partial passage is being allowed for some vessels. But the disruption […]

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The Strait of Hormuz—a 21-mile-wide channel between the Persian Gulf and global markets—has been effectively closed to commercial shipping since late February 2026. Over 150 vessels are anchored outside the strait,1 and for the first time in modern history both Middle East major maritime corridors are blocked at once.2 

Negotiations are ongoing and partial passage is being allowed for some vessels. But the disruption has already persisted long enough to ripple through multiple layers of the supply chain and land on the desks of commerce teams managing margins, inventory, and marketplaces. 

It’s a stressful time. But the commerce world has been here before. Here’s what past disruptions tell us, what’s happening now, and what you can do about it. 

Lessons from past chokepoint crises 

When the Ever Given ran aground in March 2021, it delayed 432 vessels carrying an estimated $9.6 billion in cargo per day. The impact on commerce logistics was almost immediately felt: retail late shipments spiked 11% in the week of the blockage, and Nike, Gap, and Steve Madden all cited the incident as a direct driver of inventory shortfalls that quarter.3 

Brands with inventory already in domestic warehouses were largely protected. Brands relying on in-transit or just-in-time replenishment were not, and the global supply chain took more than two months to absorb what was only a six-day delay. 

The pandemic showed us what happens when a disruption compounds across quarters rather than resolving in days. Stockouts triggered over-ordering, which created margin erosion, which led to reactive discounting that took quarters to recover from. It was a cycle, and the brands caught in it were the ones still treating each disruption as a one-off logistics problem rather than a structural exposure.

The brands that came out structurally stronger weren’t the ones waiting for ports to reopen. They used the disruption as a forcing function to build lasting infrastructure: inventory visibility across channels, pricing systems that could respond to cost changes at scale, and channel flexibility that didn’t depend on any single supplier or route. The real question today is whether that muscle held through years of relative calm. For some brands, it has. For others, this moment is exposing the same structural gaps all over again.

The repeating lesson: waiting for resolution to plan prolongs the pain. 

Landed costs are moving  

According to Rithum’s 2026 Commerce Readiness Index, 91% of retailers and 87% of brands say pricing power is shaped more by external conditions than by their own strategies. The Strait of Hormuz is the latest confirmation. 

Hapag-Lloyd, a leading global container shipping company, is absorbing $40+ million in additional costs per week due to surging bunker fuel, war risk insurance, and emergency surcharges that now run $1,500 per container for Gulf-bound cargo.4,5 Base freight rates from Shanghai to Jebel Ali more than doubled in the first two weeks of March alone.6,7 

For brands, those costs move into pricing decisions, promotional planning, and SKU prioritization. And for brands with lean inventory strategies, this impact will likely ripple through into Q2 and Q3, even into back-to-school and early holiday planning.  

Gartner research puts numbers on what’s at stake: during a major supply chain disruption, nearly two-thirds of companies expect to lose revenue and supply chains experience an average 40% surge in cost-to-serve post-disruption.8 That figure holds whether you sell through two channels or twenty. But it also holds that brands with real-time visibility into pricing and inventory are in much better shape to navigate through disruption cycles.  

This can be overwhelming, as it lands out of your control. But what you can control is acting quickly on what your data is telling you. 

What you can do right now 

Audit your inventory position across channels. Know what’s in your warehouses, what’s in transit, and what hasn’t shipped yet. For brands selling across multiple marketplaces, that picture is often fragmented across systems. Consolidate it now so you can make decisions from data, not estimates.  

Revisit your pricing architecture. If landed costs are moving, your margin profile is moving. Identify which SKUs are most exposed and whether your current pricing across marketplaces reflects the new cost reality. Brands with centralized pricing management can make those adjustments at scale. 

Prioritize your assortment. Not all SKUs are equal under margin pressure. Identify which products have the most runway at current landed costs and consider whether promotional strategy needs to shift toward higher-margin items while the disruption persists. This is also a moment to identify SKUs with the highest exposure to affected supply chains—electronics, petrochemical-adjacent goods, and anything sourced through Gulf or Southeast Asian routes facing extended transit windows. 

Communicate proactively with retail partners. If you’re a brand selling through retail dropship programs, your retail partners are managing the same pressure. Getting ahead of availability conversations—rather than responding to stockout flags—protects the relationship and the shelf. Retailers are already managing their own inventory and margin exposure; being a predictable, communicative supplier is a competitive advantage right now. 

Don’t wait for resolution to plan. The Suez blockage lasted six days and took two months to clear from supply chains. The Red Sea crisis stretched well over a year. The planning decisions made now around inventory, pricing, assortment, and channel mix will determine your margin position heading into H2, regardless of when the strait reopens. 

Resilience is the strategy 

The brands and retailers best positioned to navigate this are the ones who built operational flexibility into their commerce infrastructure before the disruption hit, ensuring inventory visibility, centralized pricing, channel diversification, and the ability to make fast decisions from clean data. The data story about your products, the accuracy of your pricing, the visibility into your inventory—those are things you can control right now. Rithum was built for moments like these. If you’d like to talk through what this means for your business, please reach out. Our team is ready to help you navigate it.  

Talk to our team

Sources 

1.  Carra Globe, Strait of Hormuz Closure 2026: What It Means for Your Supply Chain, March 2026. 
2.  CNBC, The Strait of Hormuz crisis explained: What it means for global shipping, March 2026. 
3. Wikipedia, 2026 Strait of Hormuz crisis
4. Supply chain impact figures from post-Ever Given analyses; retail late shipment data widely reported. See also Easyship, Strait of Hormuz Shipping Disruption (2026)
5. UNCTAD, Strait of Hormuz Disruptions: Implications for Global Trade and Development, 2026. 
6. Wikipedia, 2026 Strait of Hormuz crisis. Brent crude peaked above $126/barrel, March 2026. 
7. Sourcing Journal / Reuters, Hapag-Lloyd Faces $40–$50 Million Weekly Costs Due to Middle East Conflict, March 2026. 
8. Container News, Hapag-Lloyd introduces war risk surcharge for Gulf cargo, March 2026. $1,500/TEU standard; $3,500/TEU reefer. 
9. Couriers & Freight, Middle East Conflict: Major Carriers Add Shipping Surcharges, March 2026. 
10. TTL Co., War Risk Surcharge on Gulf Shipping — Verified Carrier Rates (March 2026). Freightos Terminal data. 
11. Easyship, Strait of Hormuz Shipping Disruption (2026): Impact on SMBs. Cape of Good Hope rerouting adds 10–14 days per shipment. 
12. CNBC, How Strait of Hormuz closure can become tipping point for global economy, March 2026; citing Andrei Quinn-Barabanov, Moody’s. 
13. ISM / Gartner, The Impacts of the Iran Attack on Supply Chains and Global Business, March 2026. 

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From guesswork to precision: How AI improves delivery promise accuracy https://www.rithum.com/blog/how-ai-improves-delivery-promise-accuracy/ https://www.rithum.com/blog/how-ai-improves-delivery-promise-accuracy/#respond Thu, 26 Mar 2026 13:00:00 +0000 https://www.rithum.com/?p=5067 Reading Time: 5 minutesA deep dive into the machine learning models behind more accurate ETA predictions  TL;DR  For a lot of retailers, delivery promise still starts with simple math: three days to process, five days in transit (call it eight) and move on. That kind of estimate can work for a while, especially when the fulfillment network is relatively predictable. But it gets shaky […]

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A deep dive into the machine learning models behind more accurate ETA predictions 

TL;DR 

  • Many retailers still build delivery promises by combining a processing window, a carrier transit estimate, and a buffer. 
  • That approach starts to break down in supplier-fulfilled ecommerce, where processing times vary by warehouse, backlog, fill rate, and current operating conditions. 
  • Rithum’s Delivery Promise uses machine learning to predict processing time and transit time separately, which produces a more realistic ETA. 
  • The advantage comes from the data behind the prediction, especially supplier-warehouse visibility across the network. 
  • Package Predictor is separate from Delivery Promise, but it improves shipping-cost decisions by predicting package weight and dimensions more accurately. 

For a lot of retailers, delivery promise still starts with simple math: three days to process, five days in transit (call it eight) and move on. That kind of estimate can work for a while, especially when the fulfillment network is relatively predictable. But it gets shaky fast in supplier-fulfilled ecommerce, where one order may ship from a warehouse running normally, while the next may come from a location dealing with backlog, fill rate issues, or a completely different operating rhythm. 

Carrier performance adds another layer of variability, changing by service level, lane, and time of year. So, while a static estimate may look clean in the system, it can end up far removed from how an order is actually likely to travel. 

That is the problem that machine learning is helping solve in Rithum’s Delivery Promise. Instead of relying on one rule that tries to cover everything, Delivery Promise can use historical and real-time data to make a better estimate of how a given order will progress through fulfillment and transit. And because Rithum sits across a broad supplier network, the model can work from a fuller picture than most retailers have on their own. 

Why do static ETA estimates break down in supplier-fulfilled ecommerce networks?

Static promise logic assumes fulfillment behaves like a fixed process. In supplier-fulfilled ecommerce, it rarely does. 

If you are relying on a standard processing window and an average transit estimate, you are treating every order like it moves the same way when it doesn’t. Supplier performance is rarely consistent across the network; one warehouse may be operating normally while another is slowed by backlog, labor constraints, fill rate issues, or the type of orders coming through. 

You may not know ahead of time which warehouse will handle the order. That alone makes it tough to pin processing time to one standard number. 

A simple estimate is easy to put in place. Keeping it useful is another story once the network gets bigger and more complex. 

How does machine learning improve delivery promise accuracy?

Rithum’s approach starts by separating two questions that many systems treat as one. 

Delivery Promise uses predictive machine learning models to predict how long an order is likely to take to process before it ships and how long it is likely to take in transit after it leaves the warehouse. Those two steps are connected, but they are not driven by the same conditions. 

Processing time depends on what is happening inside the supplier’s operation. Transit time depends on what happens once the package is in the carrier network. Treating them separately gives you a more realistic ETA than rolling everything into one estimate. 

Rather than forcing every shipment through the same assumption, the system can use historical performance and current conditions to make a better prediction for the specific order in front of it. 

Why does Rithum’s network give the model a clearer view of ETA risk?

The model only gets you part of the way. ETA accuracy also depends on how much of the fulfillment picture the system can actually see. 

In supplier-fulfilled commerce, retailers are often working with gaps. They may know the supplier, but not the warehouse that will ship the order. Even when they know the likely location, they may not have a current view of backlog, fill rate, or how that warehouse has been performing under similar conditions. 

Rithum works from a broader set of signals across its network, including where inventory sits, which warehouse is likely to fulfill the order, how that location has performed in similar situations, and what current conditions look like in real time. 

That broader view is the real advantage. A retailer may know its own order history. Rithum can pair that with network-level visibility into supplier warehouses, which gives the model a stronger read on where risk is building and where a promise is more likely to hold. 

Why do more accurate delivery promises help at checkout?

At checkout, the estimate has to hold up. When the date is built from a simple estimate, retailers usually have to play it one of two ways: pad it to be safe, or tighten it and hope the order moves the way the system expects. Neither is a great option. 

With a better prediction behind it, the system can generate a date based on how that order is likely to move through fulfillment and transit under current conditions, rather than applying one broad assumption across the board. 

That gives retailers a better shot at posting a date that can hold up without pushing it farther out than necessary—protecting checkout conversion rates while safeguarding brand trust. 

What is Package Predictor, and how does it connect to Delivery Promise?

Package Predictor is related to Delivery Promise, but it is not doing the same job. 

Delivery Promise is trying to predict timing. Package Predictor is trying to predict how the shipment will actually be packaged, especially when it comes to weight and dimensions. 

That is a different problem, and it affects a different part of the shipping decision. The size of the box usually is not what determines how fast something moves through the network, but it does affect shipping cost and service selection. 

That is where things get messy in dropship. You may have catalog data for an item, but not enough detail to know how a real order will be packaged, especially when multiple items ship together. And when that data is coming from a broad supplier base, it’s often incomplete, inconsistent, or both. 

Package Predictor gives the system a better way to work through that uncertainty. It looks at historical shipment behavior and uses those patterns to make a better estimate than a manual default can. 

How does Package Predictor improve shipping-cost decisions?

Package Predictor gives the rate estimate better information to work from. If the estimated weight and dimensions are wrong, the estimated shipping cost is wrong. And once the cost estimate is off, it becomes much easier to choose the wrong service or make a fulfillment decision that costs more than expected. 

Package Predictor improves both accuracy and coverage, reducing the number of cases where the system has to fall back to broad supplier-level or retailer-level defaults. 

Better package estimates sharpen carrier-rate accuracy—and that’s what drives smarter shipping decisions. 

Why rising shipping complexity puts more pressure on ETA accuracy and package data

Shipping has gotten more expensive in more complicated ways. Carrier agreements are more layered than they used to be, dimensional-weight charges continue to hit certain shipments harder, and small inaccuracies in the data can create bigger downstream problems than they once did. 

That puts Delivery Promise and Package Predictor under a brighter light. One is trying to generate a delivery date that holds up in a more variable network. The other is trying to improve the package data behind the rate estimate, so the shipping decision is built on something more reliable than a rough default. 

When costs tighten and variability increases, the quality of those inputs is what ultimately protects your profit margins. 

What retailers should do next if static delivery estimates are starting to fall short

The old approach gets harder to trust as fulfillment spreads across more suppliers, more warehouses, and more moving parts. 

If you are trying to improve ETA accuracy in supplier-fulfilled ecommerce, broad averages only get you so far. Better predictions come from data that reflects how fulfillment and transit are actually performing. 

Machine learning becomes useful when it can model that day-to-day variation instead of smoothing it over with one broad rule. That is especially true in supplier networks, where the operating conditions behind an order can change from one warehouse to the next. 

The prediction is only as strong as the visibility behind it. The clearer the view into supplier warehouses, fulfillment conditions, and transit performance, the stronger the delivery promise becomes. 

To learn more about how Rithum supports delivery promise accuracy and shipping-cost decisions, schedule a demo for a closer look at Delivery Promise and Package Predictor. 

Talk to our team

Kyle Knoblock is Staff Product Manager, Retailers at Rithum.

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How Rithum’s delivery solutions helps retailers save 10% on shipping costs—with no added headcount  https://www.rithum.com/blog/how-rithums-delivery-solutions-helps-retailers-save-10-on-shipping-costs-with-no-added-headcount/ https://www.rithum.com/blog/how-rithums-delivery-solutions-helps-retailers-save-10-on-shipping-costs-with-no-added-headcount/#respond Mon, 24 Nov 2025 12:00:00 +0000 https://www.rithum.com/?p=4642 Reading Time: 4 minutesRetail is under pressure from every angle. Rising shipping costs are squeezing already tight margins, while consumer expectations for fast, reliable delivery continue to climb. And surcharges up to 26% push real costs above 10% for many shippers.  Ecommerce retailers face even tougher challenges. Online return rates reached 24.5% this year, compared to just 8.71% […]

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Retail is under pressure from every angle. Rising shipping costs are squeezing already tight margins, while consumer expectations for fast, reliable delivery continue to climb. And surcharges up to 26% push real costs above 10% for many shippers. 

Ecommerce retailers face even tougher challenges. Online return rates reached 24.5% this year, compared to just 8.71% for in-store purchases, according to the latest data from Capital One Shopping. This results in higher fulfillment costs and added strain on operations, challenging retailers to maintain speed and accuracy. 

For retailers operating dropship and private marketplace models, these challenges are multiplied. Managing hundreds of suppliers, each with different shipping capabilities and performance standards, while maintaining consistent customer experience, becomes an overwhelming task that traditionally requires a lot of manual work. 

Rithum’s Delivery Solutions are a comprehensive suite of automated tools. These tools are designed to help retailers of every size and shape cut shipping costs, improve delivery performance, and manage suppliers more effectively without the added headcount. Here’s how it works. 

Shipping Optimization: automated savings without the manual work 

Shipping Optimization is at the heart of Rithum’s Delivery Solutions. Rithum uses an intelligent system that automatically selects the best shipping method and origin for every order based on real-time data. Rather than guesswork, the system is powered by comprehensive data including supplier warehouse locations, current inventory levels, product specifications, and dynamic carrier rates. 

Retailers using Shipping Optimization can save 10 to 20% on their annual third-party shipping costs, especially for multicarrier strategies. This automation runs within Rithum’s dropship network, requiring zero IT integration while delivering substantial cost reductions.  

For one multi-brand home goods retailer managing dozens of suppliers across furniture, decor, and kitchen categories, that meant serious savings. With millions in annual shipping spend, a 10% reduction translates to seven-figure savings annually. That’s money that flows directly to the bottom line while the system operates autonomously in the background. 

While the underlying technology analyzes thousands of variables as they happen, your team experiences it as orders being routed more efficiently, costs dropping, and performance improving without any manual intervention. 

Delivery Promise: faster estimates that drive conversions 

Nothing kills a sale faster than uncertain or lengthy delivery timelines. Rithum’s Delivery Promise tackles this challenge directly by providing accurate delivery dates using sophisticated machine learning models that factor in supplier performance history, weather patterns, current order backlogs, and warehouse fill rates. 

Delivery Promise can improve metrics dramatically. Results depend on your starting point, goals, and implementation approach. We’ve achieved 95%+ early and on-time delivery accuracy with optimized promise dates and measured up to 18% conversion lift for each day removed from Delivery Promise. 

According to industry data from the Baynard Institute, 47% of shoppers abandon carts due to shipping costs. The connection to delivery promises is clear: show accurate, optimized delivery dates upfront with total costs, and you remove the uncertainty that kills conversions. 

Our machine learning models are continuously improving, learning from actual delivery performance to refine future predictions. This creates a virtuous cycle where delivery promises become more accurate over time, further improving customer confidence and conversion rates.  

Ensuring supplier compliance with End-to-End (E2E) Monitoring  

Managing supplier performance across a diverse network has traditionally required armies of analysts to constantly monitor shipment data, chase down exceptions, and manually create reports. E2E monitoring transforms this labor-intensive process into an automated oversight system, saving retailer time and resources. 

Real-time monitoring tracks every aspect of supplier shipping performance, automatically generating reports that provide visibility and accountability across your entire network. This systematic approach enables retailers to achieve 97% or higher SLA compliance across their supplier networks. That’s a level of performance that would be nearly impossible to maintain through manual processes alone. 

The downstream benefits extend far beyond internal operations. Improved supplier compliance directly reduces “Where Is My Order” (WISMO) customer service inquiries, minimizes negative reviews related to shipping delays, and prevents the last-minute scrambling that occurs when shipments go awry. 

With consistent performance standards across all suppliers, retailers can confidently make delivery promises to customers while knowing their supplier network will deliver on those commitments. Rithum documents how shipment and delivery insights expose exceptions early so teams can act before promises are missed. 

Released Q3 2025: Shipping Address Validation 

Rithum continues to develop Delivery Solutions to ease the fulfillment process and cut costs. Shipping address validation released Q3 2025. This feature helps prevent costly last-mile delivery errors. It verifies delivery addresses and classifying them as residential or commercial before shipment. The validation will reduce failed deliveries and the expensive redelivery attempts that follow, leading to significant savings for retailers. 

Address validation represents another layer of automated intelligence that further reduces costs and improves customer experience without requiring additional operational resources. 

Built for dropship and private marketplace complexity 

Traditional fulfillment models, while challenging, operate within relatively controlled environments. Dropship and private marketplace fulfillment introduces exponentially more complexity: hundreds of suppliers with varying capabilities, different shipping standards, multiple inventory systems, and fragmented communication channels. 

Rithum’s Delivery Solutions was purpose-built to handle this complexity. The platform connects disparate systems and automates manual decisions that would otherwise require constant human oversight. That provides retailers with comprehensive visibility across fragmented supplier networks, allowing them to make informed decisions.  

This approach transforms what has historically been a series of manual, error-prone processes into an automated system that scales as your supplier network grows. 

Bring delivery under control with Rithum 

Shipping Optimization, Delivery Promise, and End-to-End Monitoring work together to tackle three daily problems: rising parcel costs, higher shopper expectations, and complex third-party operations. 

Use them to lower shipping spend, give customers clear delivery dates, and keep suppliers on time, all without adding headcount. 

Package Predictor, powered by RithumIQ, automatically predicts package weights and dimensions based on real-world shipping behaviors. For retailers using Shipping Optimization, predictions flow into the label printing process to reduce manual guessing and avoid costly mis-selections. Accuracy stats are forthcoming once broader rollout data is in. 

Ready to see what 10-20% shipping savings looks like for your specific operation? We’ll analyze your historical shipping data—at no cost—to show exactly where dropship rate shopping could impact your bottom line. Contact us for your personalized savings analysis based on your actual shipping patterns and supplier network. 

Connect with Rithum to see what this looks like for your business. Get the tools and intelligence needed to succeed in today’s retail environment. 

Talk to our team

Kyle Knoblock is Staff Product Manager, Retailers at Rithum.

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Use Rithum’s 2026 commerce readiness index to optimize channels and fulfillment today https://www.rithum.com/blog/rithum-2026-commerce-readiness-index-pick-the-actions-that-matter-now-across-channels-and-fulfillment/ https://www.rithum.com/blog/rithum-2026-commerce-readiness-index-pick-the-actions-that-matter-now-across-channels-and-fulfillment/#respond Tue, 30 Sep 2025 11:00:00 +0000 https://www.rithum.com/?p=4390 Reading Time: 2 minutesU.S. ecommerce sales will jump 8% this holiday season, while overall retail is predicted to grow 4% during the peak seasonal shopping months. For retailers and brands, that surge raises the stakes: product data must be accurate, sites must perform under pressure, delivery promises must actually deliver, and returns must be seamless (or prevented, if […]

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U.S. ecommerce sales will jump 8% this holiday season, while overall retail is predicted to grow 4% during the peak seasonal shopping months. For retailers and brands, that surge raises the stakes: product data must be accurate, sites must perform under pressure, delivery promises must actually deliver, and returns must be seamless (or prevented, if possible). 

The Rithum 2026 commerce readiness index provides a timely view into these challenges. Based on an independent survey of retail and brand executives, it reflects what your peers are prioritizing right now as they prepare for 2026. The index was created to help retailers and brands identify the actions that matter most—and make measurable progress across channels and fulfillment so they’re stable and steady coming into 2026. 

What the survey responses reveal about 2026 for retailers and brands 

Pulling from the responses of commerce executives, the index focuses on what shapes results before and after purchase, the role of data quality in decision-making, how to get the most out of automation, and where the industry is bracing for impact. You’ll see benchmarks and practical plays from peers that will help you guide near-term priorities, including how they’re: 

  • Fixing pre-checkout gaps by connecting ads to in-stock SKUs and keeping product pages current 
  • Reducing avoidable contacts and returns after purchase 
  • Cutting manual work with data standards and automation that speed decisions 
  • Protecting margin with a clearer view of cost to serve 
  • Implementing AI that delivers results, not just noise 

What breaks the path to purchase 

According to survey respondents, the path to purchase is breaking from a thousand small fractures that add up fast. Shoppers bounce at broken links, out-of-stock products, slow sites, confusing listings, and irrelevant ads. Post-purchase, they churn after poor service, clunky returns, and delayed communication.  

For retailers, the biggest cracks appear before checkout, with the majority pointing to ad-to-product page breakdowns, followed by payment issues. For brands, the pain shows up after the sale, with customer care and returns topping the list.  

Commerce leaders say what’s breaking isn’t just the customer experience, but the systems behind it. Siloed data, manual workflows, and slow response times leave teams reacting after the moment has passed. 

Coming into 2026, retailers and brands are focused on fixing the breaks that lose customers. The index shows where peers are investing in stronger product connections, clearer delivery promises, and smoother service to protect both satisfaction and margin. 

Why better data ends spreadsheet speed 

Many retailers and brands say they’re still stuck at “spreadsheet speed.” Manual work dominates, from vendor analysts pivoting late-order reports in Excel to reconciling conflicting data across systems. These steps slow reaction times and introduce errors that ripple through decisions. 

Nearly three in four executives admit they sometimes act on outdated or inaccurate data. More than one-third say it happens often. That kind of gap leaves strategy shaped by incomplete information rather than facts teams can trust. 

The index points to how retailers and brands are starting to move faster by cutting manual steps so decisions can happen in hours, not days, and so they can rely on standardized data at every level.

Why retailers and brands need this index 

Rithum’s 2026 commerce readiness index reflects what leading retailers and brands say is working before and after purchase, with benchmarks you can use to guide your next steps.  

Download the report to see the full findings. 

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How DSW and Marks & Spencer scaled without stocking more inventory  https://www.rithum.com/blog/dsw-marks-spencer-expand-assortment-without-inventory/ https://www.rithum.com/blog/dsw-marks-spencer-expand-assortment-without-inventory/#respond Tue, 23 Sep 2025 11:00:00 +0000 https://www.rithum.com/?p=4300 Reading Time: 2 minutesAs holiday peak approaches, retailers face a familiar choice. Shoppers want more options and fast delivery. Extra stock ties up cash, raises markdown risk, and complicates planning. DSW and Marks & Spencer took a third route: expand assortments through partner networks, keep firm control of fulfillment, and build on systems already in place. Rithum provided […]

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As holiday peak approaches, retailers face a familiar choice. Shoppers want more options and fast delivery. Extra stock ties up cash, raises markdown risk, and complicates planning. DSW and Marks & Spencer took a third route: expand assortments through partner networks, keep firm control of fulfillment, and build on systems already in place. Rithum provided the operational layer so teams could see what was happening, add suppliers quickly, and protect delivery promises when volumes rose. 

DSW grows online presence with high-performing dropship operations 

DSW set a clear goal: give online shoppers the same breadth they see in stores, without lowering accuracy or service. Dropship opened the door to a larger catalog. As partners multiplied, holding vendors to DSW’s standards got harder. 

The retailer turned to Rithum to upgrade and expand its dropship operations. Teams gained a live view of performance, onboarded brands faster, and corrected issues the day they appeared. The catalog kept growing while delivery promises held up in busy periods. 

The impact: 

  • Nearly 100% fill rate year-round 
  • 250 brands live on the platform 
  • 152 supplier connections through rapid onboarding 
  • Ability to track and act on vendor performance in real time 

Read the full case study 

Marks & Spencer expands digitally without new inventory 

Marks & Spencer, one of the UK’s most recognized retailers, aimed to expand digitally without buying more inventory. The team needed one way to connect partners, products, and channels so growth would not add operational strain. 

Rithum’s Commerce Suite provided that flexibility. With Commerce Suite M&S connected supplier onboarding, order management, and returns in a single flow that fit its existing systems. Partners went live faster. Teams worked from the same data. Customers saw a wider range of products while service stayed consistent through seasonal swings. 

The impact: 

  • New partners onboarded quickly and efficiently 
  • Broader assortment without holding more inventory 
  • Unified operations across systems and channels 

Read the full case study 

What these outcomes share 

Both retailers used partnerships as the growth lever and relied on one system to run the work. That pattern let them widen choice without cutting into on-time delivery or order accuracy: 

  • Supplier onboarding ran as a repeatable process, so new brands moved from yes to live quickly. 
  • A single view of orders and supplier performance guided daily decisions. 
  • Live signals drove action to keep fulfillment standards steady, especially during holiday peak. 

Why this matters now 

Leaders want breadth without freezing cash in extra inventory and want vendors held to clear standards. They want to build on the stack they have. These two examples show a practical path to all three as holiday peak season nears. 

Want to learn how Rithum can help your business? Schedule a demo with our team today. 

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Holiday peak 2025: keep your delivery promises  https://www.rithum.com/blog/holiday-peak-2025-delivery-promises/ https://www.rithum.com/blog/holiday-peak-2025-delivery-promises/#respond Thu, 18 Sep 2025 11:00:00 +0000 https://www.rithum.com/?p=4263 Reading Time: 3 minutesRetail teams balance cost, speed, partners, and margin every day. When volume rises, small issues can snowball, and time is tight. You need a plan that helps you move quickly while keeping customers confident in your ability to deliver. Holiday peak is already taking shape, and signals point in the same direction: earlier demand and higher […]

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Retail teams balance cost, speed, partners, and margin every day. When volume rises, small issues can snowball, and time is tight. You need a plan that helps you move quickly while keeping customers confident in your ability to deliver. Holiday peak is already taking shape, and signals point in the same direction: earlier demand and higher shipping costs. During July’s deal stretch, U.S. shoppers spent $24.1 billion across July 8-11, up 30% year over year, according to Adobe Business. Back-to-school behavior supports that shift with 67% of K-12 and college shoppers already shopping by mid-July, the earliest start share since NRF began tracking

Shipping carriers are also preparing for the rush. USPS filed temporary peak-season price changes for Oct. 5, 2025 through Jan. 18, 2026, and UPS and FedEx have published demand-surcharge updates that begin as early as late September. 

Late handoffs, higher transport costs, and visibility gaps happen. That is normal. You do not need to fix everything at once. Start by setting a reliable date at checkout, keep eyes on the steps that might put that date at risk, and choose the lowest cost method that still meets it. Lets walk through how to put this into practice so your team stays fast, accurate, and in control for the holiday rush.

Set the date customers can count on 

A reliable delivery date is the anchor of customers’ post-purchase experience. Predict a precise arrival date and present it at the digital checkout, so that the estimate that customers see is the estimate you meet. This is what Rithum’s Delivery Promise is designed to do, using real signals to calculate precise arrival dates that align with how shipments actually move.  

Once the date is set, track how well you keep it. Use a single view of orders from creation to delivery, with alerts when handoffs are late or a shipment stalls. End-to-End (E2E) Monitoring provides dashboards and real time notifications so teams can spot issues early and avoid costly delays. One retailer raised on-time delivery from 94% to 99% during peak holiday season using E2E Monitoring. 

Spend only where risk deserves it 

After promise accuracy is stable, protect margin. Choose the lowest cost shipping method that still meets the date. Shipping Optimization compares carriers and service levels and automatically selects the best option for each order, which cuts down on manual routing and unnecessary upgrades.  

Why better data makes better dates 

Your predictions are only as good as the information behind them. Rithum connects brands, retailers, and suppliers at scale, which strengthens the signal used to set delivery dates, pick cost-effective ship methods, and surface problems early. More than 40,000 global brands use our products and services.  

What to do next 

  • Set the date and measure it. Replace broad delivery windows with a single day whenever you can. Track the share of orders delivered by the date shown at checkout and make it a weekly metric everyone can see using Delivery Promise. 
  • Watch each order from click to doorstep. Turn on alerts for late handoffs, missed scans, packages sitting too long at a carrier facility, and final mile delays so teams act before customers ask by using E2E Monitoring.  
  • Pick the best method for each order. Keep the lowest cost option that still meets the date. Let Shipping Optimization make that choice automatically.  

Peak periods will test these choices. Outcomes depend on your starting point and implementation, but the path is consistent: set a clear promise, track the steps that put it at risk, and spend only when the data says you need to. Learn more here

Madison Jarvis is Senior Product Marketer, Retailers, at Rithum.

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Fixing fulfillment: what retailers need from a delivery platform  https://www.rithum.com/blog/fixing-fulfillment-what-retailers-need-from-a-delivery-platform/ https://www.rithum.com/blog/fixing-fulfillment-what-retailers-need-from-a-delivery-platform/#respond Fri, 22 Aug 2025 17:02:48 +0000 https://www.rithum.com/?p=4089 Reading Time: 4 minutesYou have the data. Orders are flowing through your system, carriers are picking up packages, and customers are receiving their purchases. But can you confidently say that orders will arrive when promised?  For many retailers, the answer is no. That gap between what you know and what you need to know is costing you in […]

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You have the data. Orders are flowing through your system, carriers are picking up packages, and customers are receiving their purchases. But can you confidently say that orders will arrive when promised? 

For many retailers, the answer is no. That gap between what you know and what you need to know is costing you in service calls, returns, and lost loyalty. 

The hidden costs of poor fulfillment visibility 

When you can’t predict delivery accuracy, the consequences can be felt throughout every part of the business. Returns can spike when packages arrive late or customers lose faith in delivery promises. Customer service teams field endless “where is my order” calls. Shoppers turn to competitors with more reliability.  

You likely have plenty of systems, but if they don’t talk to each other effectively that leaves blind spots throughout the order lifecycle. You might know when an order ships, but do you know if your supplier will meet their promised ship date? Can you identify which carrier will deliver fastest while keeping costs reasonable? When a shipment runs into delays, do you find out in time to take action? And as assortment expands through third-party (3P) partners and dropship, complexity rises and control falls if the data is not actionable.  

These gaps create a cascade of problems that go far beyond individual late deliveries. 

Core challenges that keep retailers struggling 

These are the common hurdles we see most often and why they matter. 

  • Lack of visibility across the order lifecycle creates reactive instead of proactive fulfillment. Without end-to-end tracking, issues only surface when it’s already too late to fix them. A supplier ships late, a carrier experiences delays, or weather disrupts logistics, and the first sign of trouble is an angry customer email. 
  • Inefficient shipping method selection leaves money on the table with every order. Manual processes or basic rules engines can’t account for the dozens of variables that determine the best carrier choice: current capacity, weather patterns, delivery windows, cost structures, and performance history. That means overpaying for speed you don’t need or choosing cheap options that miss delivery windows 
  • Late deliveries erode trust over time. Every missed delivery date chips away at customer confidence. Even when 95% of orders arrive on time, that 5% failure rate can define your brand reputation. Customers remember the disappointments, not the successes. 
  • High returns due to missed delivery expectations create a vicious cycle. When customers can’t trust delivery dates, they over-order with the intention to return what they don’t need immediately. Or they lose patience with delayed orders and return items they might have kept if delivery had gone smoothly. 
  • Difficulty scaling without adding manual overhead becomes a bottleneck. As order volumes increase, the complexity of managing multiple suppliers, carriers, and delivery requirements multiplies. Traditional approaches require more staff, more systems, and more coordination, eating into the profits that growth should generate. 
  • Supplier missteps can undo good planning. Even if you pick the right promise and carrier, it falls apart when a supplier uses the wrong service or misses a step.  

Proven results  

The power of advanced delivery capabilities shows up clearly in business results. Retailers using advanced delivery platforms can experience 7-9% savings on shipment costs without requiring new integrations or system overhauls. The savings come from smarter carrier selection and better rate optimization, not from cutting service quality. 

Performance improvements can be even more dramatic. One major retailer achieved 99% on-time delivery rates for express shipments during peak season, up from 95% the previous year. That four-percentage-point improvement translated directly into fewer customer service calls, lower return rates, and higher customer satisfaction scores. 

Retailers that extend these practices to products fulfilled by third-party partners can achieve dramatic results, because optimization and automation replace blanket expediting and guesswork. 

Making the most of AI in fulfillment 

Modern platforms use artificial intelligence to make fulfillment decisions that would be impossible for human teams to manage manually. AI systems can process hundreds of variables simultaneously: carrier capacity, weather forecasts, historical performance data, cost structures, and delivery requirements. Used appropriately, this data can help make optimal shipping decisions in milliseconds. 

This intelligence becomes especially valuable during peak seasons or unexpected disruptions. When weather shuts down major shipping hubs or demand surges beyond normal capacity, AI-powered platforms can instantly reroute orders, switch carriers, and adjust delivery promises to maintain performance levels. 

Making the right platform choice 

When you’re evaluating delivery platforms, look for specific capabilities that address core fulfillment challenges. Rithum’s services include: 

  • Delivery Promise technology uses machine learning models to provide customers with accurate delivery dates by analyzing warehouse processing times, inventory levels, and carrier transit times. This goes beyond static shipping estimates to offer dynamic promises based on current conditions. 
  • Shipping Optimization can reduce costs by an average of 10 – 20% through optimal carrier and warehouse selection that minimizes expenses while ensuring on-time delivery. Rather than relying on predetermined shipping rules, these systems continuously evaluate the best routing and carrier options for each individual order. 
  • Supplier Enablement and Compliance gives partners shared scorecards, clear SLAs, and precise packing and shipping instructions so they can self-correct and meet promises without adding headcount. 
  • End-to-End (E2E) Monitoring provides retailers with operational insights that help prevent late shipments, simplify order management, and expose new opportunities by monitoring every order from pick, pack, and ship through final delivery. This visibility allows proactive problem-solving, rather than reactive damage control. 

Visibility and control in one place 

Managing fulfillment within a closed system of owned goods shipping out of facilities you operate is fundamentally different than partnering with third parties to fulfill as a drop shipper or marketplace seller. Retailers need tools designed to anticipate the dynamic variables that factor into the experience their customers have with third-party fulfilled purchases. And even if you’ve invested in advanced solutions for shipping and analytics internally, you can’t be successful unless those tools are getting into the hands of the people who actually influence the customer order experience: your suppliers. 

The better approach involves choosing a platform that directly engages your network of partners: a place where both stakeholders can work to manage shipping optimization, monitoring, supplier compliance, and reporting from one unified interface. 

Retailers don’t need another system to manage. They need a platform that engages the third-party network to make fulfillment easier, faster, and more cost-efficient while providing visibility and control. 

Your customers are already asking whether their orders will arrive when promised. The question is whether your platform can give you the answer even when that ships from a partner location. Learn how Rithum can help

Jen Ulrich is a Client Executive at Rithum. 

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The shipping dilemma: why faster isn’t always better for retailers https://www.rithum.com/blog/the-shipping-dilemma-why-faster-isnt-always-better-for-retailers/ https://www.rithum.com/blog/the-shipping-dilemma-why-faster-isnt-always-better-for-retailers/#respond Thu, 14 Aug 2025 12:00:00 +0000 https://www.rithum.com/?p=4017 Reading Time: 6 minutesRetailers have spent years trying to compete on speed. Same-day and next-day programs became the standard as companies pushed to match what Amazon promised. But faster doesn’t always mean better. If a package shows up too soon, the customer may not be home to receive it. If it arrives late, trust is lost. Either way, […]

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Retailers have spent years trying to compete on speed. Same-day and next-day programs became the standard as companies pushed to match what Amazon promised. But faster doesn’t always mean better. If a package shows up too soon, the customer may not be home to receive it. If it arrives late, trust is lost. Either way, the experience falls short. 

The better path is to focus on accuracy. A customer places an order on Monday afternoon. The item is in stock, checkout is smooth, and the confirmation email says the order will arrive by Friday. At 2 p.m. that day, the package is on their doorstep. Not earlier. Not later. Exactly when expected.  

That accuracy builds customer confidence. It’s not about getting the product faster. It’s about knowing when it will arrive and being able to plan around it. 

The most compelling evidence of this shift comes from recent consumer research. 90% of consumers are willing to wait two or three days for deliveries, especially if it lets them avoid shipping costs, according to McKinsey 2025 survey data. This represents a fundamental evolution in consumer priorities, driven by economic pressures and a growing appreciation for value over velocity. 

What customers expect from delivery 

McKinsey’s numbers paint a clear picture of what actually matters to consumers: 

  • 95% of respondents prefer free shipping with standard delivery to paying for expedited delivery. 
  • More than 90% of customers will abandon an online purchase over high shipping costs. 
  • About 50% of consumers say they won’t pay for shipping at any speed. 
  • Consumers rate reliability as more important than same-day delivery. 

Retailers are adapting to these preferences by offering delivery options that are tailored to cost, speed, and proximity. The goal is to give customers control and clarity, while optimizing for operational efficiency. That strategy depends heavily on where the customer is and where the product is. While companies like Walmart and Amazon can execute this quickly due to their robust supply chains and membership models, other retailers are embracing tools like in-store pickup or leveraging memberships to drive satisfaction and conversion. 

At Rithum, we help retailers present the most optimal shipping method—balancing customer satisfaction and margin—by analyzing all critical variables, including location, processing time, transit time, and dimensional weight. This means retailers can sometimes offer faster delivery without increasing cost. One stat we often share: for every day a retailer can shave off the delivery promise (without adding cost), they can increase conversion by up to 20%. 

Consumers are actively strategizing to avoid shipping costs, often increasing their order values in the process. For retailers, this represents an opportunity to drive higher average order values while reducing shipping complexity. 

Amazon’s pivot: accessibility over speed 

Even Amazon, the company that essentially created the need for speed, is showing signs of strategic evolution. In April 2025, Amazon announced a $4 billion investment to expand faster delivery services to over 4,000 small towns and rural areas by the end of the year. This initiative prioritizes enhancing shopping accessibility for underserved communities, rather than pushing the speed envelope further in already well-served urban markets. 

This move signals Amazon’s shift from speed dominance to a focus on accessibility and reliable service in underserved markets. 

This reflects the core of Rithum’s Delivery Promise: giving retailers the tools to meet expectations with confidence, not chase speed for its own sake. 

The real cost of speed 

The financial reality behind speed-focused shipping strategies is becoming increasingly unsustainable for many retailers. Geopolitical factors like tariffs and conflicts in the Red Sea have increased container shipping costs over the last year. In July, USPS announced price increases as high as 10% across Ground Advantage, Priority Mail, and Parcel Select services.  UPS and FedEx have also continued to raise rates significantly, contributing further to rising delivery costs. 

These costs don’t exist in a vacuum. They inevitably impact pricing strategies, profit margins, and business sustainability. The logistics infrastructure required to support ultra-fast delivery, including distributed warehousing, specialized transportation networks, and expedited processing systems, represent a massive capital investment that many retailers struggle to justify when consumer priorities are shifting. 

Product inventory may differ between big brands and boutique shops, but there’s a common denominator: shipping rate increases will either force retailers to absorb the cost or pass it on to their customers. This creates a challenging scenario where retailers must choose between eroding their margins or potentially losing price-sensitive customers. 

In many cases, retailers also struggle with visibility into how shipping costs are being attributed. That lack of clarity makes optimization difficult. At Rithum, we surface the full data picture, including carrier performance, transit time, and cost per package, to ensure every shipment is aligned with the most profitable outcome. 

Consider sustainability as a value driver 

While not the primary driver of consumer behavior, environmental consciousness is one factor influencing purchasing decisions. McKinsey survey data found that 51% of consumers say the environmental impact of purchases is extremely or very important to them, which has remained fairly consistent since 2020. 

Slower shipping options contribute to environmental sustainability by enabling more efficient route planning, consolidated shipments, and reduced carbon emissions from expedited transportation methods. 

Companies that can articulate the environmental benefits of standard shipping while maintaining competitive pricing and reliability often find receptive audiences among environmentally conscious consumers. Consumers are willing to spend an average of 9.7% more, and on products that are produced or shipped more sustainably, and 58% of Shorr survey respondents prefer brands that have publicly committed to sustainability goals. 

While Amazon is widely recognized for incorporating sustainability into its logistics strategy, other retailers are starting to explore similar approaches. Rithum’s fulfillment data allows retailers to reduce waste, avoid excess miles, and make smarter shipping decisions that support both cost savings and environmental impact, even if they aren’t leading with that message today. 

Companies like DHL eCommerce, which provides CO₂ emissions tracking at checkout and low-impact delivery options, and Amazon, which promotes eco-friendly fulfillment through its Climate Pledge Friendly program are helping lead the charge in sustainable shipping practices. Many other retailers and logistics partners are following suit. 

Delivery expectations are your best differentiator 

There are opportunities for retailers to differentiate themselves through factors other than delivery speed. Reliability, customer experience, and transparency are becoming the new competitive battlegrounds. 

Accurate delivery expectations are surprisingly powerful. Research suggests that mismatched delivery expectations are a leading cause of customer dissatisfaction. In the Mckinsey survey, consumers ranked transparency in shipping as their second most important priority, behind only cost.  

Customer experience extends far beyond delivery time. It includes easy tracking, flexible delivery options, hassle-free returns and responsive customer service. These elements can create strong customer loyalty even without shaving delivery time. 

Once a customer finds a product, what they really want is a clear and accurate delivery date. Delivery commitments like “arrives by” or “get it in X days” build more confidence than a vague three-to-five-day window. Rithum’s Delivery Promise is designed to surface these accurate estimates by analyzing ship-from/ship-to locations, inventory availability, carrier schedules, and other key data points, ultimately helping retailers meet expectations and improve conversion. 

The role of fulfillment intelligence 

As consumer priorities shift, the retailers that thrive aren’t necessarily those with the fastest delivery times, but those with the smartest fulfillment strategies. The ability to dynamically optimize shipping times, costs, and fill rates becomes the true differentiator. 

Retailers embedded in large commerce networks benefit from insights into shipping performance, cost-per-package metrics, and demand patterns that enable them to make informed decisions about when speed matters and when it doesn’t. This intelligence allows for strategic flexibility: offering expedited shipping for time-sensitive purchases while promoting cost-effective standard shipping for regular orders. 

The key is having the data and tools to make these decisions intelligently, rather than applying a one-size-fits-all approach to all orders and customers. Traditional fulfillment models, while challenging, operate within relatively controlled environments. Dropship and private marketplace fulfillment introduces exponentially more complexity: hundreds of suppliers with varying capabilities, different shipping standards, multiple inventory systems, and fragmented communication channels. 

Modern delivery solutions are built to handle this complexity. These platforms connect disparate systems and automate manual decisions that would otherwise require constant human oversight, providing retailers with comprehensive visibility across fragmented supplier networks. 

One of the biggest challenges retailers face is ensuring supplier compliance with preferred carriers and service levels. We solve this using both End-to-End Monitoring and by providing the shipping label itself, with each reinforcing the standards that drive cost-effective, on-time delivery. Additionally, Rithum leverages predictive data like supplier processing times to create more accurate delivery windows and reduce the risk of delay. 

Looking forward 

The data strongly suggests that the race to the bottom on delivery times may have reached its practical limit. Consumers are signaling that they value cost savings, reliability, and transparency over marginal improvements in speed. 

To meet these demands, many retailers are pulling back from same-day or next-day programs, instead focusing on three key goals: 

1. Setting an accurate delivery promise. 

2. Optimizing cost to meet that promise—which may involve either a downgrade or upgrade of service, and  

3. Driving supplier compliance by offering the shipping label, which ensures use of preferred carriers and service levels.  

These strategies are helping retailers improve profitability while maintaining high levels of customer trust. 

By focusing on these priorities rather than pure speed, retailers can build more sustainable business models and stronger customer relationships. 

The companies that thrive in this new landscape will be those that understand their customers’ actual priorities and build fulfillment strategies accordingly. Retailers that lead in today’s market deliver on time, control costs, and give customers confidence at checkout. 

Ready to transform your delivery operations? Rithum’s Delivery Solutions help retailers balance speed, cost, and customer satisfaction through automated tools that can cut shipping costs by 10% or more while improving delivery performance with no added headcount. To learn more, talk to Rithum

P.S. – Rithum’s delivery capabilities aren’t exclusive to dropship. We help retailers optimize across both dropship orders and their own owned inventory by applying the same fulfillment intelligence across all fulfillment methods. 

John Fobare is Vice President, Client Partnerships at Rithum. 

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Retailers Are Losing Margin at the Doorstep—Here’s How to Stop It https://www.rithum.com/blog/retailers-are-losing-margin-at-the-doorstep-heres-how-to-stop-it/ https://www.rithum.com/blog/retailers-are-losing-margin-at-the-doorstep-heres-how-to-stop-it/#respond Thu, 24 Jul 2025 13:00:12 +0000 https://new.rithum.com/blog/uncategorized/retailers-are-losing-margin-at-the-doorstep-heres-how-to-stop-it/ Reading Time: 4 minutesWhen shoppers click “buy,” the real cost clock starts ticking. Shipping rates have jumped and carriers rolled out new surcharges for 2025. At the same time, the U.S. is preparing to impose a 30% tariff on European imports starting August 1, and the de minimis exemption will be eliminated by July 2027. These changes will […]

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When shoppers click “buy,” the real cost clock starts ticking. Shipping rates have jumped and carriers rolled out new surcharges for 2025. At the same time, the U.S. is preparing to impose a 30% tariff on European imports starting August 1, and the de minimis exemption will be eliminated by July 2027. These changes will increase the total cost of getting goods into the country and eliminate duty-free status for small packages. Layer in record-breaking return volumes and a surge in return fraud, and your profitability starts to vanish before the order even arrives on your customer’s doorstep.  

Here’s what’s driving these costs—and why it matters now. 

The biggest profit drains start early in the fulfillment process. When retailers display inaccurate delivery dates at checkout and fail to keep customers informed about the status of their orders during fulfillment and delivery, it results in an influx of customer service calls. 

I hear these concerns regularly in conversations with retailers. Another problem is when retailers fail to choose the most cost-effective shipping option that still meets the delivery promise. These issues can lead to increased costs and potentially lower customer satisfaction, ultimately impacting future sales and margins. 

Delivery costs keep climbing 

Carrier rate increases aren’t slowing. UPS, DHL, and FedEx announced 5.9% base rate hikes for 2025, while USPS and DHL added seasonal and handling surcharges.  

While costs rise, consumers still expect timely delivery. Consumers want convenience, and delivery speed matters. The Rithum 2025 Global Returns & Profit Impact Report found that 54% of consumers consider shipping time as a key reason they buy from a specific retailer or brand.  

Retailers are focusing on providing faster delivery for their customers, but this must be balanced with the higher shipping costs that come with expedited services. 

Tariffs and supply chain disruptions reshape cross-border costs 

Delivery expenses are increasing as new tariff rules add pressure. For retailers, cross-border ecommerce is becoming more expensive and complicated, requiring sourcing strategies that adapt quickly to protect margins. 

The retailers I work with are deeply concerned about the upcoming tariff and trade deadlines. They are genuinely worried about the potential for increased costs and disruptions in the supply chain. 

These uncertainties make it challenging for retailers to plan inventory levels and make pricing decisions for the rest of the year and the holiday peak selling season. Some of the latest developments include: 

  • May 2025: The U.S. ended de minimis eligibility for shipments from China and Hong Kong. 
  • August 1, 2025: A 30% baseline tariff on EU imports will take effect if no trade deal is reached. 
  • July 1, 2027: The U.S. will repeal de minimis entirely, ending duty-free status for packages under $800. 

Free shipping isn’t free 

Consumers expect convenience, but it comes at a high cost. 72% of global shoppers say free delivery would improve their online shopping experience, according to DHL. In response, retailers are: 

  • Raising thresholds for free shipping 
  • Adding per-order fees or loyalty-based discounts 

More retailers are considering reducing free shipping offers, particularly due to the uncertainty surrounding cost increases associated with tariffs and trade issues. Some of the options being considered include increasing the minimum order value that qualifies for free shipping and introducing tiered shipping costs. This cautious approach is driven by concerns about managing expenses and maintaining profitability in an unpredictable economic environment. 

Returns are costing retailers 

Returns are no longer a background cost. They can be one of the biggest profit drainers for retailers. In 2024, U.S. retailers absorbed $890 billion in returns, representing 17% of retail sales. Returns are also shaping consumer behavior before a purchase even happens.   

According to the Rithum 2025 Global Returns & Profit Impact Report of 6,000 global consumers: 

  • 60% of consumers returned at least one online order in the past year 
  • 36% intentionally over-order, a practice known as “bracketing,” especially in categories like apparel and footwear 
  • For Gen Z shoppers, bracketing behavior jumps to 50%, indicating a generational shift toward pre-planned returns 

These patterns create a ripple effect. Bracketing drives up reverse logistics costs and ties up inventory. Poor product content adds to the problem: 61% of shoppers cite incorrect fit as the top reason for returns, and a third say items did not match descriptions or photos. 

Return policies now influence purchase decisions. 88% percent expect free returns, and nearly half have stopped buying from a retailer because the policy did not meet expectations. Free returns cut into margins, but restrictive policies risk losing customers. 

Returns are no longer a minor cost. They affect revenue, loyalty, and operations. Retailers that improve product content, delivery accuracy, and policy clarity can protect margin and retain shoppers. 

Fraud increases the pressure 

Retailers lost $103 billion to return fraud in 2024, including wardrobing and empty-box scams, according to Appriss Retail and Deloitte. Fraud includes empty-box returns, item swaps, and increasingly wardrobing, which is when shoppers buy an item, use it for a short time such as a special occasion, and then return it for a full refund as if it were new. 

Ecommerce can enable this behavior because refunds are often processed before returned items are fully inspected. Retailers then absorb the loss with little chance of recovery. Many companies are tightening return policies to combat fraud, but stricter rules can create friction for honest customers and harm loyalty. 

How retailers can stay ahead without adding complexity 

Margin pressure is coming from every direction. Technology can’t erase shipping surcharges or tariffs, but it can help retailers make smarter decisions that limit unnecessary costs and protect revenue. 

Rithum helps retailers do that by introducing tools designed to improve efficiency inside existing workflows. Shipping Optimization identifies the most cost-effective delivery option without sacrificing promised delivery dates. End-to-End (E2E) Monitoring provides real-time visibility across the order journey, helping teams act on potential delays before they affect customers. 

One large omnichannel retailer I work with is collaborating with Rithum to ensure a faster delivery promise while managing the increase in shipping costs. They’re’ doing this by using Shipping Optimization to upgrade shipping only for orders that cannot be delivered on time using ground service. 

Both solutions work with systems retailers already use. The result is lower shipping costs, fewer late deliveries, and more accurate performance insights without slowing growth or adding complexity. Margins aren’t lost at checkout, they disappear in the steps that follow. Retailers who act now to control costs and gain visibility are poised to maintain profitable growth. Learn more about how Rithum can help here. 

 

Stan Antonuk is a Client Executive at Rithum. 

 

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How Retailers Can Optimize Shipping – Join Rithum at NRF 2025 https://www.rithum.com/blog/how-retailers-can-optimize-shipping-join-rithum-at-nrf-2025/ https://www.rithum.com/blog/how-retailers-can-optimize-shipping-join-rithum-at-nrf-2025/#respond Mon, 16 Dec 2024 13:00:36 +0000 https://new.rithum.com/blog/uncategorized/how-retailers-can-optimize-shipping-join-rithum-at-nrf-2025/ Reading Time: 2 minutesManaging 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 […]

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Reading Time: 2 minutesManaging 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.

 

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