How 3PL providers can use supply chain technology to address the challenge 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.