Third-Party Logistics and Ecommerce

The Rise of Ecommerce

Prior to the online retail boom of 2005–2010 – spearheaded by ecommerce giant Amazon – only 22 percent of people shopped online.

Now, it’s expected that ecommerce will generate a staggering $4.5 trillion in sales by 2021.

Further, Statista predicts that by 2023 the United States alone will house 300 million online shoppers – which is 91 percent of the total population.

And by 2040, 95 percent of all retail purchases will likely be made online.

The Amazon effect has changed behavior and created a new kind of consumer who values speed and convenience.

Amazon, for instance, offers one-click buying and one-stop shopping, lower prices on average, a catalog of over 12 million products to choose from, special deals with membership, and lightning-fast shipping.

To consumers, anything less feels like an unnecessary compromise.

Table of Contents

• What challenges are 3PLs facing?
• Technology helps 3PLs meet demand
• Voice
• Robotics and automation
• Process and profitability modeling
• How 3PLs can solve the complexity

Third-party logistics providers find themselves faced with an increasingly complex landscape that is continuously evolving.