With the lockdown being imposed due to Covid-19, online business has grown manifold. Many traditional businesses are selling their goods online, whether through their own websites or through E-Commerce portals like Amazon. To push online business further, portals like Amazon come up with different models to ensure faster delivery of goods to the customer. One such model is the fulfillment model of E-Commerce wherein sellers store the goods at the warehouse managed by Amazon and as and when orders are placed, Amazon ships the products directly to the customer. While fulfillment model proved to be a huge success for Amazon and sellers alike, it came with its own drawbacks, the major one being high storage costs, high order fulfillment cost charged by Amazon to the sellers. This, in turn made the products expensive and thus making online purchase less attractive for the customer.
Source Taxguru
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