Japanese retailer Rakuten began dominating the social space in 2019, landing multi-million-dollar partnerships with big names like FC Barcelona, Live Nation, American Express, and the Golden State Warriors. Now, Rakuten is taking on Amazon on their home turf here in the United States, with plans to offer one-day delivery.
Known as the “Amazon of Japan,” Rakuten has been making waves. In 2018 alone, Rakuten’s revenue totaled to $9.9 billion or more than 1 trillion yen, making them the youngest company in Japan to beat the yen benchmark. But Rakuten isn’t stopping there. In the next few years, the company plans to double down on logistics and beat UPS and FedEx at their own delivery game.
In 2013, Rakuten introduced Rakuten Super Logistics into the logistics industry with its Webgistix buyout. Webgistix (founded in 2001) brought forth its five distribution centers and, seven years later, has grown into Rakuten Super Logistics with 15 facilities and counting. With nearly 20 years of fulfillment experience, the company can challenge other industry veterans in warehousing and fulfillment technology. Rakuten Super Logistics offers back-end distribution to eCommerce retailers and partners with entrepreneurs to grow their businesses.
"If you receive a package from one of our clients from our distribution network, it doesn't have our logos all over it. The end-user never knew that Rakuten Super Logistics was the one that was behind the fulfillment of the order and delivering it to you," said Rakuten Super Logistics CEO Michael Manzione.
"We saw the movement was going towards same-day and next-day delivery," Manzione said. "And this was obviously initiated by Amazon. We're really trying to level the playing field."
Manzione said Rakuten Super Logistics envisions same-day and next-day delivery in the 25 largest cities in the US in the next three to five years.
"By the time that the consumer is really demanding it, our customers have our support to deliver that," Manzione said.
When Rakuten Super Logistics accomplishes their one-day and same-day delivery goal, they could pose an even larger threat to one of Amazon’s biggest services.
Ken Cassar, VP of research at retail-industry event Shoptalk, told Business Insider that Rakuten Super Logistics is "aggressively expanding." Rakuten Super Logistics is bringing together capacity and automation. They are offering expert fulfillment services to all their clients, whether they are selling on Amazon or not.
"A lot of our clients are similar because frankly, a lot of our clients are looking for other alternatives to Amazon," Manzione said. "I think one of the things that Amazon is struggling with is really how to build better partnerships with their customers."
The future is bright for Rakuten Super Logistics, with its powerhouse parent company supporting its growth. Rakuten Super Logistics strategically plans to continue placing fulfillment centers in multiple locations across the country. This will put their client’s products nearer to their customers and get the company one step closer to same-day and one-day ground delivery.
Rakuten Super Logistics (RSL) is a national leader in eCommerce order fulfillment and freight brokerage. RSL’s nationwide network of fulfillment centers allows leading eCommerce retailers to reduce shipping costs, improve order accuracy, decrease shipping times, and increase customer satisfaction. Contact us to request a quote and learn more about partnering with RSL to fulfill your eCommerce shipping needs.