Store-based fulfillment has been revitalized as a strategy for retailers to compete with online shopping. This model, also known as 'ship-from-store,' traces back to the late 19th century when Au Bon Marché utilized its physical space for mail order fulfillment. The model became particularly popular during the pandemic, enabling quicker and more cost-effective delivery by leveraging local store inventories. Major retailers like Walmart fulfill a significant portion of their online orders through physical stores, while Target achieves an impressive 95% fulfillment rate through numerous locations after a substantial investment.
As early as the late 19th century, the world's oldest department store, Au Bon Marché, was already using its physical retail space to fulfill mail orders, delivering goods by horse and carriage.
During the pandemic, the 'ship-from-store' model went mainstream, promising faster, cheaper delivery by using local stores to fulfill online orders.
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