February 24, 2009, 12:00 AM

CommerceHub reports strong drop-shipping business in 2008

Drop-ship orders through Commerce Technologies Inc.’s CommerceHub platform, which provides retailers with outsourced fulfillment and integration with suppliers, increased 19% in 2008 over 2007, the company reports.

Drop-ship orders through Commerce Technologies Inc.’s CommerceHub platform, which provides retailers with outsourced fulfillment and integration with suppliers, increased 19% in 2008 over 2007, the company reports. CommerceHub processed more than 18.5 million drop-ship orders in 2008, the company reports.

CommerceHub says the growth in drop-shipping is particularly noteworthy given that the entire e-commerce market grew 6% in 2008. “Despite the tough economic times, CommerceHub continues to experience double-digit growth,” Mike Nelsen, COO of CommerceHub, says. “We are seeing merchants utilize drop-ship fulfillment for a larger percentage of their businesses.”

Under the drop-shipping method of order fulfillment, a retailer sells the product to the consumer but relies on the product’s manufacturer to warehouse it and ship it to the end buyer. In that way, the retailer does not take on inventory risk.

CommerceHub provides order management, supply chain visibility, branding, inventory synchronization, carrier tracking, and product return services.

It reports more than 5,000 retailers and manufacturers are linked to its network, including Costco Wholesale Corp., QVC Inc., Staples Inc., Drugstore.com, Sears Holdings Corp., Best Buy Co. Inc., Toshiba Corp., Sanyo Electric Co. Ltd., Konica Minolta Holdings Inc., Gateway Inc. and The Little Tikes Co.

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