In today’s digital age, consumers increasingly prefer to shop online, making e-commerce a booming industry. The global value of e-commerce sales is expected to hit $6.3 trillion in 2023, and this trend shows no signs of slowing down. This shift in consumer behavior has had a significant impact on transportation logistics.
How Consumer Demand Impacts Logistics
As e-commerce retailers strive to meet the high expectations of their customers, the logistics industry is working hard to keep up. The US Department of Transportation predicts that by 2040, annual freight volume will rise by 45% to 29 billion tons.
One of the key challenges faced by the logistics industry is reducing lead time. Customers now expect fast and efficient shipping, with cutting-edge tracking features and, in many cases, free shipping. This expectation has put pressure on e-commerce retailers to employ the latest technology and the best logistics practices and teams to keep up.
The growing demand for goods has also led to a shortage of truck drivers. The Bureau of Labor Statistics predicts trucking jobs will grow 6% from 2016 to 2026. This shortage has created a challenge for the logistics industry, making it difficult for e-commerce retailers to meet their delivery goals.
Partner With the Experts
To address these challenges, e-commerce retailers are increasingly outsourcing their transportation logistics needs to third-party logistics (3PL) providers. This allows them to focus on product development and innovation while ensuring they stay competitive and meet their goals. Outsourcing also provides an opportunity for e-commerce businesses to save money and offer perks like “free shipping.”
Amware is a 3PL specializing in transportation logistics that has helped many e-commerce companies streamline their fulfillment and transportation needs. Amware can help e-commerce businesses structure their pricing so that shipping becomes a profit center instead of a cost center. For e-commerce companies utilizing parcel service, Amware can review, audit, negotiate, and help recover funds from current parcel carriers.
In conclusion, transportation logistics is a crucial aspect of the e-commerce industry. With the growing demand for goods and the increasing expectations of consumers, it is essential that e-commerce retailers employ the best logistics practices to stay competitive. By partnering with 3PL providers like Amware, e-commerce businesses can ensure their transportation logistics are optimized and cost-effective. Request a free trial of our cloud-based TMS, Amrate, below and start saving up to 30% annually on LTL.