The Impact of Fulfillment Service Provision on the Operational Efficiency of Online Businesses

Abstract

This research aims to investigate the impact and experiences of online business entrepreneurs utilizing Fulfillment services, which represents an outsourcing strategy for managing the entire back-end logistics system.the study employed a qualitative research design. Data was collected through in- depth interviews with five key entrepreneurs, and the information was analyzed using Thematic Content Analysis.the analysis revealed that the adoption of Fulfillment services introduces a complex trade- off in business operations. The primary motivations for using the service were the need for scalability and time-saving, allowing entrepreneurs to concentrate on strategic tasks such as marketing and product development. However, entrepreneurs simultaneously faced challenges, including higher variable costs and reduced flexibility in critical operational processes. Notably, while the speed of delivery improved significantly, the rate of delivery errors tended to increase during peak order periods. consequently, Fulfillment serves as a strategic tool that genuinely enables online businesses to scale and enhances brand credibility. Nevertheless, entrepreneurs must carefully manage the risks associated with accuracy and cost control to achieve maximum operational efficiency.