Being a shipper today is tough. It is also busy. As COVID-19 gripped the world, more shoppers looked online to make purchases. COVID-19’s accelerated shift to eCommerce has created a prolonged peak shipping season. Carriers’ space is limited, they must make more residential deliveries, and they are passing the costs along to shippers in the way of increased surcharges and volume restrictions.
This is a trend that should outlast lockdowns and become part of the new normal.
According to a Pitney Bowes study, 73 percent of consumers say they have enjoyed shopping online during the pandemic more than they expected. Additionally, 28 percent of online shoppers spend more time searching for new brands or eCommerce websites they have never visited before.
3PLs Shifting to Omnichannel and Last-Mile Fulfillment
Another aspect of the new normal is a shift for many third-party logistics (3PL) providers moving into the retail and last-mile delivery space as they become entrenched in the retail omnichannel shipping landscape.
The 3PL sector is well-positioned to take on some of the business from retail, with U.S. 3PL eCommerce revenues expected to rise 28% for 2020 as companies continue to outsource their logistics activities to keep pace with online shopping.
The Right Software for 3PLs to Manage Parcel Shipping
However, a 3PL’s ability to appropriately capitalize on these opportunities is driven by having the right technology that allows them to integrate via APIs and meet growing customer needs while also managing many shippers.
A multi-carrier shipping system platform with multi-shipper management capabilities offers retail solution providers more complete control over end-to-end multi-carrier shipping system deployment, configuration, and support. This is vital as 3PLs move from traditional freight logistics to individual parcel and last-mile shipments.
To learn more about the shift of 3PLs to the retail omnichannel shipping strategy, download our latest eBook, “Why 3PLs are Adding Parcel and Becoming a Bigger Part of Retail’s Omnichannel Logistics.”