3PLs and merchants have faced many supply chain challenges over the past year to maintain record consumer demand. At the end of 2021, retail sales in the United States accounted for 13% of the total and fell to 15.7% in the first half of 2020. However, in the fourth quarter of 2019, it was 11.3%.
In 2022, traders need to be more innovative when it comes to using 3PL. Another key e-commerce milestone will be finding a balance between keeping costs low and maintaining a consistent supply of goods to fulfill demand. The use of automation technology to increase efficiency has increased in recent years, and this is just the beginning. If you are interested in adopting 3PL in 2022, you can click here to learn about 3PL from Red Stag. The top 3PL trends and challenges for 2022 are below.
Fast and Fully Functional Service Online
The number of online stores has increased in recent years. In Q3 2021, Shopify, a crucial e-commerce platform, grew 46 percent. Barriers for retailers to create cheap and fast digital shops have never diminished. There are various online stores like Shopify that make it possible for any seller around the world to open a fully functional online store in 30 minutes.
Deliver, Flowspace, Flexe, and Stord were among the startups that made considerable investments in FaaS in 2021. These companies frequently establish warehouse networks to take advantage of available space and give sellers a simple and cost-effective way to fulfil orders.
While low prices, quick service, and convenience have long been significant selling points for many of these businesses, they may sometimes come at the sacrifice of service, flexibility, and quality.
Goods Delivery Will be Faster to Their Doorsteps
Delivering your goods to the customer’s home has never been easier. Blue-chip asset-based carriers such as FedEx and UPS have invested billions of dollars over the past decade in small parcel infrastructure to deliver goods faster and cheaper to homes. However, due to labor shortages and operational delays last year, carrier prices rose, and peak surcharges became the norm.
Regional carriers specializing in household goods have become prominent in delivery markets in 2022. As larger carriers shifted their focus from light parcels to heavier, more profitable cargoes, regional carriers jumped at the chance to acquire smaller parcel businesses.
Amazon Fever Continues to Rise
Amazon has continuously invested extensively in its infrastructural offerings in order to maintain and expand its dominance in the United States. In terms of total parcels transported, Amazon Logistics beat FedEx in 2020 and is on track to exceed UPS in 2022. Amazon is the biggest marketplace, fulfillment center, and soon-to-be delivery service in the United States.
Many Amazon sellers are looking for alternate sales and completion solutions as a result of Amazon’s frequent changes. Shoppers will diversify their sales channels in 2022 by opening their own e-commerce stores, using other digital products like target.com and walmart.com, or adopting Amazon complement alternatives.
To fully leverage the benefits of 3PL in 2022, the first step is to understand what trends and challenges are prevalent this year. The second step is to make sure you can take advantage of these developments. Overcome barriers and increase your market position. It is where a similar software solution comes in handy. For example, using WMS to handle resource constraints can help you gain significant performance.