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.  

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. 

The post What the Hormuz Straight disruption means for your commerce operations appeared first on Rithum.

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. 

Kyle Knoblock is Staff Product Manager, Retailers at Rithum.

The post From guesswork to precision: How AI improves delivery promise accuracy appeared first on Rithum.

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. 

Kyle Knoblock is Staff Product Manager, Retailers at Rithum.

The post How Rithum’s delivery solutions helps retailers save 10% on shipping costs—with no added headcount  appeared first on Rithum.

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. 

The post How DSW and Marks & Spencer scaled without stocking more inventory  appeared first on Rithum.

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. 

The post Fixing fulfillment: what retailers need from a delivery platform  appeared first on Rithum.

Retailers are already bracing for the holiday rush, knowing that sales in November and December often turn into returns in January. Last year, U.S. shoppers sent back an estimated $112 billion worth of goods, much of it from peak season purchases, driven by bracketing, bulk ordering, and unmet expectations. Some companies are turning to technology to reduce the impact, such as using AI-powered tools to automatically assess product condition and route returns efficiently, or launching dedicated online marketplaces for returned goods that cannot go back into regular inventory, according to Vogue Business. 

The challenge spans fashion, electronics, home goods, and more. That reality was the focus of a recent Rithum webinar with Fabian Ortmann, Head of Returns, ZEOS, Kevin Brown, Director, Sales and Strategic Partnerships, Essendant Fulfillment Services, and Lou Camassa, Director of Product, Rithum. Through data, real-world examples, and practical advice, they shared what works to reduce return rates without losing customer trust. 

How to improve product pages to reduce retail returns 

Every product page is a chance to keep a sale from becoming a return. Even small changes in how information is presented can shift the outcome. Lou described a case where a retailer listed the same item on its own site and on a marketplace. The brand’s page told shoppers to size up, but that line was not including in the marketplace listing. Returns on the marketplace version increased, each one chipping away at margins. 

Fabian’s experience at Zalando underscored the same point, though his team looked at the fix from another angle. About a third of their returns were tied to size and fit. Adding the model’s height and size to photos gave customers a better sense of proportion, while short videos showing the product in motion helped set realistic expectations.  

“We see very significant improvements on the return rates when shoppers can picture how the product fits in real life.” – Fabian Ortmann, ZEOS 

Kevin brought the conversation beyond apparel. For electronics, furniture, and other categories, the most reliable sizing or performance advice often comes from other customers. He pointed to reviews that spell out precise measurements, compatibility notes, or assembly tips as powerful tools for setting expectations.  

“I’m a two XL tall, six-five, and I rely on reviews that say, ‘Here’s my size and weight. This is what fits me well,’” he said, noting that the same principle works whether you are buying a jacket or a desk. 

Speed matters: why acting fast on returns protects profit 

When a customer decides to send something back, speed becomes critical. Kevin described the “trunk time” he has seen, where returns sit at home or in a car for days or weeks before being shipped. This delay cuts into resale opportunities for any category, whether it is seasonal apparel or high-demand electronics. Prepaid labels, clear instructions, and easy drop-off options can make the difference between a resale and a write-off. 

Fabian’s team at Zalando tested shorter return windows, moving from one hundred days to thirty. Customers accepted the change because most were already returning within that timeframe, and the tighter window meant popular products got back into circulation faster. 

Lou tied faster returns to customer confidence. When shoppers know how the process works before buying and get updates along the way, they are more willing to shop again. Even telling customers when they can expect a refund helps close the loop in a positive way. 

Preventing return fraud without losing good customers 

Fraud takes many forms and it was one questions that webinar viewers wanted to learn how to answer. “For the better part of 20+ years in the industry, the unfortunate reality of it is, what used to surprise me, no longer surprises me,” Kevin said. He has seen laptops returned in greasy pizza boxes and cocktail dresses returned with champagne stains with tags still in place.  

Lou shared how a retailer reduced fraudulent returns by keeping an internal watchlist of repeat offenders and flagging their orders before shipping. Fabian’s approach favored protecting return flexibility for trusted customers while limiting it for those with a record of abuse. 

During the Q&A, an audience member asked how to stop a bad customer from continuing to buy and return. Kevin’s answer started with tracking returns at the customer level. Once a pattern is identified, the next step is having a strong and well-communicated policy. He advised against detailing punishments in that policy, as those details can circulate quickly on social media and damage the brand. 

Instead, he suggested sending a professional message to customers whose behavior raises concern, explaining the situation and giving them a chance to change.  

“Simply cutting them off is bad news,” he said. “The cost of customer acquisition is too high and the risk of creating a bad public image is terribly expensive.” 

In some cases, particularly for low-cost products, Kevin noted it might be more efficient to let the customer keep the item and still process the refund, as long as patterns are monitored. 

How payment methods and delivery speed impact returns 

Not every return happens because the product disappointed. Fabian highlighted how payment methods can influence behavior. In Northern and Western Europe, where paying by invoice after delivery is common, return rates run higher than in Southern Europe, where prepaid cards are more typical. 

Late deliveries also have an impact, especially for purchases linked to specific events. Kevin added that orders shipped across borders without prepaid duties and taxes often get refused at the door, leading to expensive reverse shipments. These patterns play out in fashion, consumer electronics, home goods, and other categories where shipping costs can be substantial. 

Turning return data into a competitive advantage 

One takeaway cut through every example: returns are more than an expense to control. They are direct feedback from customers about where the shopping experience falls short. Fabian urged brands to use return data to strengthen product descriptions, improve size guides, and even adjust sourcing. Kevin stressed the need for company-wide accountability, with someone responsible for leading return-reduction efforts. 

The most effective retailers treat each return as information that can prevent the next one, turning potential losses into better customer experiences and stronger repeat sales. 

Want to watch the full conversation? Click here. 

Some quotes have been lightly edited for context and clarity. 

The post The return season begins at checkout  appeared first on Rithum.

During Amazon’s Q1 2025 earnings call, they disclosed a staggering $1 billion hit tied to unresolved customer returns and tariff-related inventory adjustments. This expense had a noticeable impact on Amazon’s operating margins, serving as a stark reminder that no retailer is invulnerable to the financial impacts of inefficient returns process.  

Customers don’t always return products because they received the wrong item. Sometimes, they return them because the item was “off.” Perhaps it looked different online than it did in person, or it arrived later than promised. Each time that happens, it costs retailers and brands roughly $30 per return, according to Rithum’s 2025 Global Returns & Profit Impact Report. That adds up quickly. But it can be avoided with the right guardrails in place. 

Guardrail: Set clear delivery expectations using high-quality shipping data 

When a shopper places an order, they expect it within the timeframe promised at checkout. 54% of consumers cited shipping time as a reason why they decided to buy from an online retailer or brand. Unreliable shipping can lead to disappointment and a negative customer experience—and that consumer will go elsewhere next time.  

Delivery Promise helps retailers set accurate delivery dates using AI and supplier, warehouse, and carrier data from Rithum’s network of over 40,000 retailers, brands, and suppliers. Shipping Optimization supports that promise by identifying the most cost-effective and timely ways to fulfill an order without compromising delivery speed. This combination gives customers the reliability they expect. And in the process, our retailers in average have saved up to 10 percent annually on shipping costs. 

41% of shoppers say return policies influence where they shop. Nearly half have stopped buying from retailers over a poor returns experience. Better accuracy up front reduces that risk and builds confidence. 

Guardrail: Stay ahead of delivery issues by monitoring every order from click to doorstep 

Late deliveries often begin with fulfillment or shipping issues. A package might sit too long at a warehouse or move slowly through a carrier network. These delays are sometimes unavoidable. But what can cause the biggest problems for both retailers and consumers alike is when those friction points are not spotted in time. 

End-to-End (E2E) Monitoring enables retailers and brands to view each stage of the order process. It helps identify slowdowns before they reach the customer and sends alerts when shipments are at risk of arriving late. Teams can track supplier and carrier performance, uncover trends, and take action earlier.  

One national retailer improved its on-time delivery rate from 95% to 99% by using these insights to respond faster. With 60% of global shoppers returning at least one order a year, and more than a third buying multiple items with the intent to return, known as bracketing, staying ahead of fulfillment issues helps protect both the customer experience and retailers and brands’ margins.  

Guardrail: Improve product listings with AI-powered categorization and content checks 

A third of returns happen because the product didn’t match the listing. AI Magic Mapper helps retailers and brands avoid misleading photos, unclear sizing, or category mismatches. By automating product categorization and listing setup, retailers and brands free up hours of manual labor to just minutes. You can view a side-by-side view of product images, titles, and descriptions, and can quickly refine listings before they go live. 

In early testing, AI Magic Mapper achieved 99% accuracy for a fashion brand with over 14,000 products. This feature is especially useful for onboarding to new marketplaces or managing large, frequently changing catalogs.  

Shoppers will always want flexibility. But they also want the product to arrive when expected—and to be what they expected. Fix that upstream, and the return never happens. Learn how with Rithum. 

Madison Jarvis is Senior Product Marketer at Rithum. 

The post Fix What’s Causing Preventable Returns Before the Order Ships appeared first on Rithum.

While Rithum’s experts broke down key challenges of multichannel selling in our recent The Rise of 3P Commerce: Why Multichannel Selling Is the Future of E-Commerce webinar, it became clear from audience questions that brands and retailers are feeling the pressure. From tighter margins, shifting fulfillment models, and the challenges of building meaningful retail partnerships, here’s how your peers are thinking about 3P commerce as they’re scaling online and facing profitability challenges (and our experts’ advice).

Q1. Where does dropship end and marketplace begin? And what does that mean for retailers and brands?

“Retailers are expanding assortments at a rapid pace through dropship and private marketplace investments to meet customer demand,” said John Fobare, Vice President, Client Partnerships. “At the same time, brands are using public marketplaces to test new products and enter new markets without relying solely on wholesale or DTC.”

“3P gives you the ability to run a hybrid strategy. You can reach new customers through marketplaces while using your owned channels to protect and serve your most loyal ones. The two don’t have to compete, they can complement,” said James Lang, Vice President, Client Partnerships.

Ultimately, the question isn’t where one model ends and the next begins—it’s how you use each one strategically.

For retailers, dropship and private marketplaces are third-party (3P) business models that offer flexibility to meet consumer demand.

• Dropship allows retailers to expand assortments without holding inventory. Suppliers ship directly to consumers on the retailer’s behalf, and retailers only pay for what sells. It’s great for reducing risk but comes with tighter margins and less control over the customer experience.
• Private marketplace (also known as curated marketplace) gives selected sellers more autonomy, including handling pricing, shipping, customer support, and returns. Retailers maintain oversight and can scale more easily by setting global seller terms instead of managing contracts individually.
• A hybrid model allows retailers to use dropship to build out a 3P commerce program to offer more assortment without buying and stocking the inventory themselves. This allows you to be flexible because you can shift high-performing dropship items to your wholesale model, increasing your product margins. Test new products and categories with low risk – and those that perform well can be moved to your dropship program.

For brands, marketplaces offer direct access to consumers across multiple platforms, and many are embracing them as a core part of their revenue strategy.

• 3P commerce helps brands extend their owned inventory to unowned channels. This enables brands to reach more consumers through a multichannel selling strategy.
• According to the State of 3P Commerce Report, nearly one-third of global executives say over 50% of their total revenue now comes from 3P sales channels. That’s how important these business models are for brands looking to scale without relying solely on wholesale or owned direct-to-consumer channels.

The key takeaway:

Brands and retailers are increasingly turning to hybrid models. Dropship enables retailers to build assortment and test demand. Marketplaces allow sellers to scale with lower overhead costs and more automation. Rithum’s unified commerce solution helps retailers and brands manage these models in one platform, reducing complexity and driving better ROI.

Q2. How do brands stay connected to retailers as 3P grows? Doesn’t it shift the balance out of control?

This is a concern we hear often, and it’s a fair one. As fulfillment shifts to suppliers and brands take more ownership in 3P environments, it can feel like traditional retail relationships are fading.

But the data—and the discussion—tell a different story.

“Retailers and brands are starting to treat 3P as an extension of the 1P relationship,” Fobare said. “What’s happening now is more collaboration because both sides know they need each other to meet the customer where they are.”

Staying connected means:

• Bringing data to the table: Brands can use performance insights from marketplaces to guide assortment decisions and pitch new opportunities to retail partners.
• Participating in retail media: With 85% of executives confident in retail media as a growth lever, collaboration on campaigns and promotions is now essential.
• Aligning on customer experience: Brands that maintain strong service level agreements (SLAs), consistent content, and reliable fulfillment earn more trust and more visibility – on both sides.

“To maintain control over the customer experience, you’ve got to partner with the right platforms and set clear standards. High-quality product data, consistent branding, accurate listings are how brands stay front and center,” Lang said.

The key takeaway:

The future isn’t about control, it’s about collaboration. Whether it’s a 1P or 3P relationship, the brands and retailers who win are the ones who work together to deliver the best customer experience.

Q3. How can Rithum help brands create new relationships with e-retailers?

Retailers are doubling down on 3P models—whether dropship, curated private marketplaces, or something hybrid. Brands, on the other hand, are looking for scalable access to new sales channels without starting from scratch each time. But the real challenge is connection: how do you find the right partner, the right model, at the right time?

That’s where Rithum comes in.

“We partner with over 40,000 brands, suppliers and retailers to expand into new channels like marketplaces, increase marketing ROI, and launch dropship and private marketplace programs,” said Brandon Klein, Director of Product Marketing at Rithum. “There isn’t much of the buying journey that we don’t touch.”

For brands, Rithum helps surface the right retailers and platforms to match your category, operational readiness, and growth goals. For retailers, Rithum simplifies onboarding and helps scale assortment with trusted suppliers fast.

“Brands and retailers benefit from being in more places at once,” Fobare said. “3P is one of the fastest ways to expand your presence and grow revenue.”

The key takeaway:

3P commerce isn’t a single strategy. It’s a flexible, high-growth model that brands and retailers are using to reach new customers, test new products, and reduce risk. But it’s not without its complexity.

The key is knowing which model to use when and how to scale each one with the right infrastructure, data, and partnerships.

“The goal is simple. Owned inventory and 3P should work together, not against each other,” Lang said.

Whether you’re a retailer expanding a private marketplace or a brand launching on Amazon, Rithum’s unified commerce platform helps you connect, scale, and grow smarter. Learn more by watching the full webinar here.

 (Some quotes have been lightly edited for context and clarity.) 

The post You Asked, We’ve Answered – The Top 3 Questions from Our 3P Commerce Webinar appeared first on Rithum.

Retail fulfillment just got a big upgrade. Essendant, a leader in distribution and fulfillment services, has partnered with Rithum to create an end-to-end solution that combines fulfillment expertise with Rithum’s advanced technology. It’s easier than ever for businesses to grow and deliver seamless customer experiences.

Expand, optimize, deliver

Essendant has helped businesses in distribution and fulfillment for more than a century. With Rithum, the 3PL provider can connect technology and logistics, empowering brands and retailers to scale operations quickly and accurately.

“This partnership represents another step forward in our commitment to providing comprehensive solutions for our brands and retail partners. By combining Rithum’s innovative platform with our extensive fulfillment capabilities, we’re enabling merchants to scale their operations more efficiently than ever before,” said David Boone, Interim CEO of Essendant.

“Partnering with Essendant as a 3PL provider unlocks incredible opportunities for our customers, giving them access to a century of proven expertise in fulfillment services. This partnership blends Essendant’s trusted legacy of customer commitment with the cutting-edge solutions they need to thrive in today’s fast-paced market,” said Lou Keyes, CEO of Rithum.

What brands and retailers can expect

This partnership will allow brands and retailers to be more efficient and scalable. With Essendant and Rithum working together, businesses can achieve:

• Seamless integration: Rithum’s commerce platform connects effortlessly with Essendant’s fulfillment network, saving time and reducing complexity.
• Enhanced efficiency: From omnichannel order fulfillment processing to delivery, the solution optimizes operations across every step.
• Nationwide reach: Access to Essendant’s vast distribution infrastructure throughout the U.S.
• Better inventory visibility: Businesses can track inventory with greater accuracy and fewer delays.
• Final-mile expertise: Fast, accurate delivery that meets rising consumer expectations.

Why this partnership is essential now

The combined capabilities of Essendant and Rithum allow brands and retailers to streamline operations while reaching more customers – without disappointing them. Are you ready to scale smarter? Whether you’re looking to grow your brand or streamline your retail operations, this partnership provides the tools to make change possible.

Discover how Rithum’s platform can transform your business. Schedule a demo today.

The post Why Essendant’s Partnership with Rithum is a Big Deal for Brands and Retailers appeared first on Rithum.

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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