Rising Tide: The Rapid Growth of E-Commerce Logistics, 3PL Solutions, Last-Mile Delivery, and the Dominance of Amazon


MILWAUKEE, Sept. 24, 2020 /PRNewswire/ — According to Armstrong & Associates, Inc. (A&A’s) newest report “Rising Tide: The Rapid Growth of E-Commerce Logistics, 3PL Solutions, Last-Mile Delivery, and the Dominance of Amazon,”  the Census Bureau of the U.S. Department of Commerce reported adjusted retail e-commerce sales in the second quarter of 2020 of $211.5 billion, a COVID–19 driven increase of 31.8% from the first quarter of 2020, and a whopping 44.5% increase from the second quarter of 2019. E-commerce retail now represents 16.1% of retail sales in the United States. The segment grew at a 14.6% Compound Annual Growth Rate (CAGR) from 2015 through 2019 and shows no sign of slowing.  

(PRNewsfoto/Armstrong & Associates, Inc.)

Growing e-commerce sales are driving up U.S. e–commerce logistics costs with a 19.9% CAGR expected through 2020. E–commerce logistics costs currently account for 9.9% of total U.S. logistics costs.

E–commerce is the fastest growing Third-Party Logistics (3PL) Market segment. Retailers are increasingly relying upon Amazon and Third–Party Logistics Providers (3PLs) to help manage omnichannel and e–commerce supply chain operations. U.S. 3PL e–commerce revenues reached $43.4 billion in 2019, and we expect 28% growth through 2020 as e–commerce purchases continue to expand during the pandemic and companies continue to outsource logistics activities. With its dominant position, Amazon’s operations boast an estimated 60% market share of the U.S. E-Commerce 3PL Market segment.

The report covers the growth of e-commerce logistics in the U.S., e-commerce fulfillment and last-mile delivery, third-party logistics provider alternatives to Amazon, Amazon’s leading market position, and an “apples-to-apples” cost comparison between Fulfillment by Amazon (FBA) and 3PL solutions using our proprietary e-commerce fulfillment pricing benchmarks from 21 3PLs representing over 1,000 customers.

Rising Tide: The Rapid Growth of E-Commerce Logistics, 3PL Solutions, Last-Mile Delivery, and the Dominance of Amazon and other 3PL market research can be purchased at www.3plogistics.com/product-category/guides-market-research-reports/market-research-reports/. “Rising Tide” comes as a standard benefit for Expert Information Service (EIS) subscribers www.3PLogistics.com/Product/Premium-Market-Research-Analysis-Expert-Information-Service/.

ABOUT ARMSTRONG & ASSOCIATES, INC.
Armstrong & Associates, Inc. (A&A) was established in 1980 to meet the needs of a newly deregulated domestic transportation market. Since then, through its leading Third-Party Logistics (3PL) market research and history of helping companies outsource logistics functions, A&A has become an internationally recognized key resource for 3PL market information and consulting.

A&A’s mission is to have leading proprietary supply chain knowledge and market research not available anywhere else. As proof of our continued work in supporting our mission, A&A’s 3PL market research is frequently cited in media articles, publications, and securities filings by publicly traded 3PLs. In addition, A&A’s email newsletter currently has over 88,000 subscribers globally.

A&A’s market research complements its consulting activities by providing continually updated data for analysis. Based upon its unsurpassed knowledge of the 3PL market and the operations of leading 3PLs, A&A has provided strategic planning consulting services to over 30 3PLs, supported 21 closed investment transactions, and provided advice to numerous companies looking to benchmark existing 3PL operations or outsource logistics functions.

Source:
Armstrong & Associates, Inc.
10401 West Lincoln Avenue, Suite 207
Milwaukee, WI 53227 USA
Phone: +1-414-545-3838 Fax: +1-414-545-3906
Website: www.3PLogistics.com

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SOURCE Armstrong & Associates, Inc.



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