E-commerce has become routine for consumers and businesses

Buying online is no longer occasional convenience but an everyday behavior for shoppers and business buyers alike. Whether someone orders sneakers on a smartphone or a manufacturer purchases parts through a web portal, both trends are driving a steady rise in digital transactions that fills order queues and forces logistics teams to rethink capacity and efficiency.

New pressures on logistics operations

The expansion of online commerce brings mounting operational stresses. Higher order counts put pressure on labor and storage, tighter delivery expectations strain transportation networks, and rising return volumes add complexity to fulfillment.

Companies that once planned for predictable seasonal surges now confront peak demand year-round, complicating efforts to maintain service levels.

Global market scale and shopper adoption

Despite tariff volatility that disrupts certain markets and product groups, global e-commerce sales are projected to climb to nearly $8 trillion by 2028, up from roughly $5 trillion in 2022. This year, e-commerce will account for more than 20% of worldwide retail sales, and eMarketer forecasts that within three years more than half the global population aged 14 and older will be active e-commerce shoppers.

Outsourcing spreads beyond large enterprises

To handle heavier order streams and tap new online opportunities, many shippers are turning to third-party logistics providers (3PLs) to expand capacity, manage fulfillment and streamline returns. What used to be primarily an option for big firms or companies lacking in-house logistics capabilities has broadened: businesses of all sizes now use 3PLs for fulfillment and transportation support.

Evan Armstrong, CEO of 3PL market research firm Armstrong & Associates, says this shift stems from both necessity and opportunity. He explains that smaller and mid-sized e-commerce fulfillment providers often need to increase wallet share and offer more services, moving beyond basic order handling into areas such as transportation management that 3PLs can deliver.

Transportation, consolidation and cost advantages

Beyond picking and packing, 3PLs frequently add value by consolidating shipments, negotiating better carrier rates and turning small parcel moves into less-than-truckload (LTL) freight where appropriate. Armstrong notes that these transportation services can be a key profitability driver for 3PLs and provide shippers with lower costs and a wider range of capabilities.

Returns create a major operational headache

Returns are a persistent challenge in e-commerce. Last year U.S. consumers returned nearly 17% of online purchases, equal to almost $890 billion in merchandise, according to the National Retail Federation (NRF). Return rates are typically higher in categories such as apparel and footwear, and seasonal peaks amplify the issue.

3PLs expanding into reverse logistics

Many 3PLs now offer dedicated reverse supply chain services that cover return labels, inspection, repackaging and restocking. They consolidate returned items, track return reasons and supply retailers with insights to help lower future return rates.

For warehouse and logistics managers already stretched thin on outbound tasks, using a 3PL for returns can free space, reduce labor demand and speed the flow of returned products back into sellable channels. Faster processing also improves the customer experience by shortening refund and exchange timelines.

Speed to resale and quality assurance

Andy Lockhart, director of strategic engagement and warehouse solutions at Vanderlande, emphasizes that the objective is to return goods to inventory quickly so they can be resold. He highlights that once an item arrives at the dock, the critical measure is how rapidly it can be made sellable again.

Automation, quality checks and software that links returned items to active demand all compress that timeline. Technologies such as cameras and machine learning can support quality assurance by identifying defects, letting operators focus only on exceptions rather than inspecting every unit manually.

Technology transforms 3PL capabilities

To cope with rising volumes, more 3PLs are adopting modern systems: warehouse management systems (WMS) for accurate inventory and order tracking, robotics to handle repetitive tasks, and cloud platforms to deliver the real-time visibility shippers expect. These tools let providers handle more volume while maintaining service and cost control.

Integration and long-term client relationships

Mike Armanious, CEO of Datex Inc., points out that contemporary WMS platforms enable quick onboarding, real-time visibility and deep integration with customer systems. When a 3PL integrates tightly with a client’s operations, the relationship tends to become more entrenched, because the software becomes essential to the shipper’s business.

Unlike single-product manufacturers with stable processes, 3PLs must constantly adapt for each new customer’s workflows. Modern software must therefore be flexible and scalable so providers can grow alongside their clients.

Automation trends and labor constraints

Evan Armstrong expects automation to accelerate in both B2C and B2B fulfillment. He cites examples such as collaborative robots (co-bots), pick-to-bot systems that bring items to packing lines, automated guided vehicles (AGVs), and emerging AI uses for dock scheduling, predictive analytics and tighter WMS–TMS integrations.

Labor shortages and rising wage costs remain a primary incentive for automation. Armstrong notes there are not enough warehouse workers or truck drivers, and turnover is high, which is why companies increasingly deploy robotics and AI to preserve efficiency in e-commerce fulfillment.

3PLs are central to future supply chains

With global e-commerce heading toward the $8 trillion mark, order volumes are rising, returns persist, and labor constraints push firms toward automation and integrated systems. Armstrong argues that 3PLs provide the capacity, technology and expertise shippers need, making outsourcing outbound, inbound and return logistics a necessity for many.

Reassessing contracts and benchmarking partnerships

Armstrong advises shippers to not treat a new 3PL partnership as the final step. Contracts signed during the pandemic era are now expiring, creating an opportunity to renegotiate terms. He recommends benchmarking current arrangements and using the request-for-proposal process to secure better pricing and capabilities, ensuring 3PL relationships stay aligned with today’s market demands.