E-commerce retail now represents 9.8% of the total retail market in the US and has grown at a compound annual growth rate of 14.9% over the last five years. Everyone knows that Amazon is the 800 lb. gorilla in e-commerce retailing, but what is its impact on LTL Trucking, Parcel, and the Third-Party logistics (3PL) markets, and how will it disrupt these markets in the future? In its latest report “Amazon Logistics Market Estimates, Benchmarking, and Predictions,” Armstrong & Associates analyzes e-commerce logistics, its major logistics competitors and Amazon’s impact on transportation and warehouse management, and the overall 3PL markets. Benchmarks for capital expenditures, warehousing and fulfillment, air freight, vehicles and drivers, and 3PL services and related assets are provided.

After establishing the current state of the logistics markets in which Amazon plays, the report’s analysis shifts to predict potential growth strategies which Amazon could pursue to leverage its logistics infrastructure and increase its footprint as a logistics provider via three hypothetical scenarios. Services such as Fulfillment by Amazon (FBA), Amazon Onsite, and Shipping with Amazon are detailed. In addition, the growth of Amazon’s Delivery Service Partner program, expansion of last-mile delivery capabilities, and possibilities for a 3PL acquisition are highlighted.

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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 62,000 subscribers globally.

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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 20 closed investment transactions, and provided advice to numerous companies looking to benchmark existing 3PL operations or outsource logistics functions.

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