Amazon hosts Prime Days amid supply chain concerns

Amazon prime days came early this year in what is thought to be an attempt to test out the capacity of their systems before the holiday season hits. Despite the reoccurring supply chain issues like port congestion and labor shortages, prime days seemed to run pretty smoothly.

“Looking at everything that has happened over the last 16 months, maybe consumers were more prepared for Prime Days than in the past, but, unfortunately, supply chain issues have never been more front and center. We will all buy online, and the good we order will be delivered, but patience will be required, and lessons will be learned along the way.”

US 3PL market to grow at a 6% CAGR by 2025

A recent report is forecasting a 74.48 bn dollar growth of the United States’ 3PL market by 2025. Factors that are expected to accelerate the market include Increased cross-border trade, better infrastructure development, and an increase in quality transportation options.

“The demand for 3PL services will increase with an increase in cross-border trade which in turn will drive the growth of the market during the forecast period.”

The U.S. will need 330 million more square feet of warehouse space by 2025

According to a report by CBRE, sales from eCommerce are expected to grow to account for 26% of all retail sales in the United States by 2025. In order to match the continued rise in demand, retailers will need more warehouse space to store their inventory. Spaces used to fulfill eCommerce demands have different specifications from other warehouses. Businesses find themselves faced limited options for rental due to lack of availability and many will have to consider the option of building new warehouses from scratch in order to meet rising demand.

“’eCommerce demand remains elevated, representing 25% of new lease signings in the first quarter,” Prologis CFO Tom Olinger said on the company’s earnings call in April. “The balance of leasing is diverse, with outsized growth among companies that provide food and consumer products as well as renewed momentum in the construction segment as housing expands.’”

Here is a series we did on peak season planning. 

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