Online Retailing Giant to Expand its Logistics Operations - Research and Markets

Feb 10, 2016, 12:48 ET from Research and Markets

DUBLIN, February 10, 2016 /PRNewswire/ --

A recent report published on Research and Markets has forecast the freight transportation management market to grow from $15.30 billion in 2014 to $23.69 billion by 2019, at a CAGR of 9.14%.  American e-commerce giant Amazon is expanding its logistics operations in an effort to combat rising shipping costs, according to reports[1] this week.

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A report on the Global Logistics Market predicted growth of 8.44% during the same period and also identified the high cost of operation as a major challenge. It highlighted a trend of companies outsourcing some, or all, of their supply management functions such as transportation and warehousing. But Amazon, who currently rely on other companies for delivery services, seem intent on managing their own shipping and distribution services rather than sourcing from competitors.

Amazon registered Beijing Century Joyo as a freight forwarder in January, with the Chinese subsidiary submitting a similar application to the US Federal Maritime Commission in November. They also filed an application with the Shanghai Shipping Exchange to serve as a shipping broker for 12 trade routes. This will allow Amazon to manage its own customs and export goods.

Another report on Research and Markets, Global B2C E-Commerce Delivery 2015, found that free shipping remains a number one priority for almost two thirds of online shoppers worldwide. In Asia, for example, around half of digital buyers would add items to a cart in order to qualify for the free shipping service.

But the report also notes delivery speed is also a major concern of global online shoppers. Especially in the emerging markets, online consumers have to cope with long delivery times, as online retailers struggle with underdeveloped logistics. In response to this demand, online retailers are offering various express delivery options. Amazon have been exploring their delivery options by adding truck trailers, freight ships and delivery flights as they look to challenge the world's biggest logistic companies. 

For further information on this topic, and a full list of all related documentation, please visit the Logistics section of  http://www.researchandmarkets.com/rm/LKRJ.                       

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1. Source: http://www.reuters.com/article/us-amazon-com-logistics-china-idUSKCN0VI21F


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