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3 Reasons e-Commerce Logistics Continues To Grow

To anyone in the know as far as the world of modern logistics, it will come as no surprise that eCommerce logistics continue to grow without any end in sight.

For the last decade, eCommerce has seen year over year percent increases in the double digits. First Quarter 2018, for example, showed a 16.4 percent growth year over year versus a total growth in retail of just 4.5 percent.

But what’s driving all this growth?

3rd Party Logistics Companies: Keeping the Little Guy Competitive

In a world where you can get everything in the refrigerator delivered in two hours, it’s harder for small eCommerce companies to stay competitive because consumers expect a level of service that’s tremendously difficult to achieve.

This is, in part, why eCommerce logistics continues to grow. These companies help to make the playing field more level for the thousands of smaller eCommerce companies out there.

Companies in this world of 3PLs and logistics also provide these benefits:

Taking care of the details so eCommerce owners can return to their primary competency. The hours and weeks and months that outsourcing complicated processes like logistics save can’t be understated.

Freeing that time up gives eCommerce business owners time to do other things that improve or grow their companies, or to restore something of a work/life balance.

Providing flexible warehouse spaces that can be scaled. With growth comes a need for more warehouse space, more pickers, more packing and more orders moving out the door.

A good 3PL will provide eCommerce business owners with all the space and manpower they need to keep growing. The more data collected on sales patterns, the better the 3PL can predict how much of what items should be in a company’s warehouse space, helping the eCommerce company save money even while it’s growing.

Knowing where and how long products will be in transit. One of the great benefits of modern life is that the right people always know where something, like a much-anticipated order, is at any given moment.

Orders can even be rerouted by a 3PL if they look like they’re about to hit a snag that will slow down delivery, making for some really happy customers. Even if they can’t be delivered in two hours, providing customers with a way to see where their item is helps to maintain customer satisfaction.

eCommerce logistics is a thriving sector right now, there’s no doubt about it. It’s all because of how rapidly eCommerce businesses are growing, by and large. After all, it’s no longer considered strange to order your dinner and a stove to cook it on from the Internet.

August 29, 2018
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