A new survey from Radial shows that 70% of fast-growing retail brands are still trying to handle fulfillment on their own, even as it becomes harder to keep up with customer expectations. Radial, a company that helps with e-commerce fulfillment, polled 200 retail leaders and found that many struggle to scale while sticking with in-house operations.

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“As modern retailers scale operations and navigate customer demands, many are finding that in-house fulfillment alone is not sustainable and stretches their internal resources,” said Tom Schmitt, CEO of Radial.

Most of these brands—especially those making under $50 million annually—run fulfillment out of a single warehouse. But the survey shows that a shift happens as brands grow. Once they hit $50 million in revenue, many start working with third-party logistics companies (3PLs) to handle orders. Among companies making $50–100 million, 57% outsource fulfillment. That jumps to 76% for those in the $150–200 million range.

What are the biggest struggles? Nearly half (47%) said scaling was a major issue. Others pointed to inflexible technology (40%) and difficulty adding new sales channels (44%).

The survey also showed that brand websites are still the top sales channel, especially for sellers of home goods, apparel, and sporting goods. However, many are branching out to popular marketplaces like Amazon and Walmart, which bring added stress like strict rules and high fees. Newer platforms like TikTok Shop, Temu, and Shein are on the radar but haven’t gained much traction yet.

Delivery costs are another big problem. About 45% of retailers said surprise charges from carriers were a regular issue. That number rises to 53% for larger companies. Smaller brands, meanwhile, struggle with high base rates and limited bargaining power.