Why Fulfilment is a Strategic Lever, Not a Back-Office Function

Traditionally, fulfilment has been treated as a cost centre. In modern e-commerce, it is a competitive differentiator. 

Consumers in every market now expect fast, reliable and transparent delivery. Research shows that 62% of shoppers will abandon a retailer after one poor delivery experience. In beauty and nutrition, this number is even higher, as replenishment cycles are short and loyalty is easily lost. 

The most successful brands view fulfilment as an extension of the brand experience. Delivery speed, packaging quality, and post-purchase communication all reinforce trust and retention. 

THG Ingenuity insight: Brands that localise fulfilment and returns in their top three markets typically reduce delivery times by 40% and increase repeat purchase rates by 18%. 

Step 1. Building the Right Fulfilment Model

Choosing the right fulfilment model is about aligning service levels with local expectations, while managing cost and compliance risk. 

1. Centralised versus Local Fulfilment 

• Centralised model: Stock is shipped from a single hub (often in the UK or EU). Lower complexity, but longer delivery times and higher shipping costs. Suitable for early-stage expansion. 
• Local or regional hubs: Stock is stored closer to the customer. Faster delivery, reduced customs friction, but higher inventory holding costs. Works best for markets with stable demand. 
• Hybrid model: The most common among THG Ingenuity partners. High-volume SKUs are stored regionally, while niche products remain centralised. This balances speed and efficiency. 

2. Returns and Reverse Logistics 

Returns are a significant margin risk in cross-border e-commerce. 

• Offer pre-paid local return options where possible, particularly for high-trust categories like skincare or supplements. 
• Set up localised returns processing hubs or use a partner network to avoid international shipping costs. 
• Use returns data to inform product improvements and demand forecasting. 

3. Delivery Promise and Transparency 

Customers in beauty and nutrition expect precision and communication. 

• Provide estimated delivery dates at checkout, not just shipping speed (“arrives by Friday” vs “standard delivery”). 
• Send proactive updates and branded tracking links. 
• Align your promise with what your logistics partners can realistically achieve in each market. 

Step 2. Expanding Channels and Marketplaces

Global expansion is not limited to launching localised websites. Marketplaces and alternative channels can accelerate visibility and trust. 

1. Evaluating Marketplace Opportunity 

Local marketplaces dominate discovery in many markets: 

• Beauty: Amazon, Sephora, Zalando and Tmall each carry regional influence. 
• Nutrition: Amazon, Lazada and iHerb drive much of the cross-border demand in APAC and Europe. 

Joining these platforms can unlock new audiences, but it requires operational precision. Catalogue structure, imagery and pricing must match local language and compliance requirements. 

THG Ingenuity recommendation: Start by integrating with one regional marketplace per target area to test pricing, demand and operational flow. Once validated, scale via multi-marketplace integration technology. 

2. Channel Diversification 

Beyond marketplaces, direct-to-consumer (D2C) sites remain vital for brand control and data ownership. 

• Maintain a balanced channel mix: your marketplace strategy should complement, not cannibalise, your D2C presence. 
• Use marketplaces for awareness and category entry, then transition loyal customers to your own ecosystem through incentives, bundles or loyalty programmes. 

3. Brand Governance Across Channels 

Different channels have different rules and customer expectations. 

• Enforce consistent product information, pricing and packaging. 
• Maintain unified brand storytelling and service levels. 
• Monitor reseller activity to prevent grey-market sales or unauthorised listings. 

Step 3. Partnering for Scale - Technology and Integration

Operational scalability depends on the strength of your fulfilment and data infrastructure. 

1. Platform Integration and Visibility 

• Implement real-time inventory management across all warehouses and channels. 
• Integrate order management (OMS), warehouse management (WMS) and transport management systems (TMS). 
• Build visibility dashboards that allow you to track stock levels, lead times and returns by market. 

2. Cross-Border Compliance Automation 

Fulfilment systems must account for local regulations, duties and HS codes. Manual handling increases risk and slows down operations. 

• Use automated duty and tax calculators at checkout. 
• Employ classification engines for customs documentation. 
• Integrate with platforms that handle country-specific labelling, packaging and shipping declarations. 

3. The Role of a Partner Ecosystem 

As markets multiply, so do operational complexities. The best brands leverage trusted fulfilment, logistics and marketplace partners to scale faster. 
THG Ingenuity’s integrated global fulfilment network offers local and regional hubs, returns management, and end-to-end visibility – giving brands both speed and control. 

Step 4. Data-Driven Fulfilment Optimisation

Data turns fulfilment into a performance advantage. Track and act on these core metrics: 

Feed these insights into your market prioritisation. A region with strong demand but high fulfilment cost may benefit from regional warehousing or 3PL support. 

Step 5. Compliance and Sustainability

Operational excellence must include compliance and environmental responsibility. 

• Customs and documentation: Ensure all exports carry accurate HS codes and origin labelling to prevent delays. 
• Product regulations: Beauty and nutrition products may require local ingredient disclosures, expiry dates or health claims verification. 
• Sustainability: Customers increasingly expect recyclable or reduced packaging. In markets like Germany or France, environmental compliance (e.g. packaging registration) is mandatory. 

THG Ingenuity’s compliance infrastructure ensures that all cross-border shipments meet regional standards while maintaining a consistent brand experience. 

Common Pitfalls

• Expanding into marketplaces without a clear operational model, leading to customer dissatisfaction. 
• Ignoring local delivery expectations and failing to meet service promises. 
• Underestimating the cost and complexity of returns. 
• Duplicating inventory across regions without data to justify it. 
• Failing to integrate systems, creating fulfilment blind spots. 

Final Takeaway

In global e-commerce, fulfilment and channel strategy are not back-end functions; they are brand growth levers. For beauty and nutrition brands expanding across borders, the winners in 2026 will be those that combine customer-centric delivery models, integrated technology and disciplined marketplace expansion.