The Future of Third Party Logistics: Amazon's Latest Disruption

Scott Hothem • December 5, 2013

Today’s supply chain technology allows you to get on your computer or mobile device to order just about anything and everything, anytime and anywhere.  Current studies show that most people are choosing to avoid the unruly crowds that seemingly go hand in hand with the Holiday season and instead,  they are  popping out their credit card, and logging on to make their purchases.


The Wall Street Journal reported online sales for “Cyber Monday” in 2013 rose 30% over last year, as consumers have become comfortable browsing websites and placing orders so products land on their doorstep in a matter of days. This new reality has placed an even higher importance on the operations of retailers, distribution centers and fulfillment networks. Companies and retailers are reworking everything from their websites to accept online orders, to using a distributed fulfillment model so consumers can pick up their online purchases at their local brick and mortar store. As consumers become more accustomed to the ease of ordering goods through a variety of eCommerce platforms and receiving their orders in record time, the evolution of third party logistics companies and fulfillment centers everywhere is a must to meet these ever changing consumer demands.


So what’s the next step?  Weekend delivery and next day shipping are great and customers almost now expect that to be the norm. However, where will their expectations develop from here?  Just imagine placing an order from your home or office and have it arrive in 30 minutes or less.  This past Sunday, 60 Minutes revealed Amazon’s plan to employ drones to deliver packages.  Amazon’s “Prime Air” would leverage unmanned aerial vehicles, equipped with your desired GPS coordinates to drop packages at your doorstep.  These drones could service a 10 mile radius from a local Amazon distribution center and deliver packages weighing up to five pounds right to your front door.


No doubt implementing this technology is a steep undertaking, requiring several years’ worth of logistics and compliance standards. Yet, it would undoubtedly change not only the way we shop but how companies approach distribution methods as a whole.  If sub-hour delivery becomes a reality and the view of drones in the sky carrying packages becomes as normal as seeing a delivery truck in your neighborhood, the behavior and mindset of consumers will change as well.


We’ve seen what new technologies have done to the commercial landscape over the past few years, and though it’s still a work in progress, distribution centers, and retailers alike have adapted to these new demands.  According to TechCrunch, Black Friday’s mobile sales were up 34% from 2012 and made up 21.8% of all online sales.  Companies will have no choice but to embrace these changes or fall victim to the latest market disruption.  As these advancements are made, retailers must keep up with the ever-changing landscape or the possibility of becoming extinct is a marked reality.  One thing you can count on, customers will continue to demand more, and it’s up to retailers to provide customers what they want, where they want it and when they want it or risk extinction.


Amazon CEO, Jeff Bezos, strives to own the next disruption in his industry.  As the world’s largest Internet retailer, as well as a major fulfillment and distribution player, he plans to revolutionize the e-commerce world with Prime Air.  When, and if, this becomes a reality is still very much up the air (pun intended), but without a doubt, it provides much food for thought for the logistics industry.

Recent Blog Posts

By Katherine Wroth May 15, 2025
Let’s be honest—most 3PLs aren’t built for high-touch brands. With premium price tags come premium expectations, and fulfillment is no exception. Whether it’s monogrammed leather goods or curated skincare kits, today’s high-touch brands can’t afford to treat logistics like a commodity. At ¿Û¿Û´«Ã½, we work with boutique luxury and personalized brands every day. One thing is clear: fulfillment is more than getting a product from Point A to Point B. It’s the final critical touchpoint in the customer experience and needs to feel as premium as the product itself. The Fulfillment Factor Behind High-Touch Brand Loyalty 71% of consumers expect personalization and 76% get frustrated when they don’t get it (Source: McKinsey & Company, 2021) You’ve done the hard work. Your product is beautiful, your website is curated and your brand story is compelling. But if the unboxing experience feels generic or careless, it can cheapen everything. In the luxury space, fulfillment is brand extension. That’s where we come in. What High-Touch Brands Need from a 3PL Here’s what we’ve learned working with some of the fastest-growing personalized and luxury DTC brands: 1. Inventory Accuracy That Doesn’t Miss When you offer custom options like embroidery, personalization, or mix-and-match bundles, flawless inventory control is essential. The entire order will be delayed or incorrect if one SKU is missing. At ¿Û¿Û´«Ã½, we achieve 99.9% inventory accuracy through advanced warehouse management systems and real-time visibility that integrates directly with platforms like Shopify and Amazon. 2. Kitting + Personalization Whether it’s applying branded tissue paper, adding thank-you notes, or assembling kits with care, we support: Custom kitting and assembly Packaging inserts SKU-level quality control Custom labeling and wrapping We’ve helped brands build everything from personalized PR kits to retail-ready gift boxes that align and enhance branding. 3. Speed Without Sacrificing Experience Yes, customers want fast shipping. But luxury shoppers expect care. That’s why we help brands strike the right balance by delivering quickly without cutting corners. With 24+ fulfillment centers across the U.S. , we enable 1 to 2-day ground shipping to 95% of the country while maintaining consistent handling processes that protect quality. 4. A Warehouse That Reflects Your Brand You’ve built a brand that stands out. Your 3PL should reflect that. At ¿Û¿Û´«Ã½, we offer: In-warehouse banners to spotlight your brand Co-branded unboxing content and marketing support A dedicated support team that understands your business and cares about the details Your brand isn’t an afterthought. It’s part of the daily operation. The Results: Better Reviews, Fewer Returns and Higher LTV According to Deloitte, brands that deliver a consistent customer experience across all touchpoints enjoy 2.4x higher customer loyalty. When fulfillment meets expectations, it drives repeat purchases, positive word-of-mouth and long-term growth. Ready for Your Forever 3PL? If you’re a high-touch, high-growth eCommerce brand, it’s time for a fulfillment partner that gets it. Contact us for a complimentary supply chain consultation and see what your brand can do with the right 3PL.
By Harrison Smith May 14, 2025
Tired of Being Too Small for Big 3PLs? We Built This Just for You!
By Katherine Wroth May 13, 2025
What's the biggest touchpoint in eCommerce? It’s when the order finally lands on your customer’s doorstep. With eCommerce projected to surpass $7.4 trillion globally by 2030 (Statista), the question isn’t just how fast you ship, but how you show up at your customer’s doorstep. For many brands, packaging is no longer just a protective layer. It’s an experience. And in a noisy, competitive digital space, it can be a significant differentiator. So, should your e-commerce brand invest in branded packaging? Let’s break it down. What Counts as “Branded Packaging”? Branded packaging is more than putting a logo on a box. It’s the full packaging experience; your choice of box design, inserts, colors, materials and even the tape you seal it with. Done well, it communicates your brand before a customer even opens the flap. Think: Custom-printed boxes with your brand colors Inserts with product tips or thank-you notes Packaging designed to be photographed and shared Its packaging has a purpose and has become an extension of the product for many brands. The Upside: Why Branded Boxes Work 1. Boosts Brand Visibility Generic brown boxes don’t spark recognition. But boxes that reflect your identity build brand equity. Studies show branded packaging can increase brand recall by up to 80%. 2. Enhances the Customer Experience The first physical interaction with your brand is when someone receives your product. A well-thought-out unboxing experience can reinforce trust and create excitement. In fact, 68% of consumers say it makes them more likely to recommend a brand. 3. Generates Organic Buzz Branded packaging gets shared, especially when it’s visually appealing. Customers are more likely to post about their unboxing, which becomes free marketing and expands your reach. 4. Can Lower Shipping Costs  Custom mailers built around product dimensions can reduce dunnage, lower dimensional weight and reduce parcel costs. BARRETT PRO TIP: A ¿Û¿Û´«Ã½ client cut freight spending by optimizing box sizes for product kits, improving efficiency and presentation. The Tradeoffs: What to Watch Out For 1. Higher Upfront Costs Custom boxes and inserts require upfront investment in materials and design. That said, many brands recover costs through shipping savings or customer retention. 2. Fulfillment Complexity More packaging options mean more room for packing errors. Unless you have a WMS with visual guides, this can lead to longer training times and fulfillment mistakes. 3. Security Risks Branded boxes can attract attention on doorsteps. With porch piracy losses reaching $12 billion in 2024, clearly labeled packages may become targets. Consider shipment protection to safeguard your customer experience and reputation. Packaging Options: Which Route Is Right? Not all brands need fully branded packaging. Here’s a quick breakdown: Plain Packaging: Simple and cost-effective. Works for brands that prioritize speed or a clean look. Fully Branded: Custom prints and full-color designs that create a premium unboxing moment. Partially Branded: Generic exterior with branded inserts or inner packaging. A balanced approach. Dual-Purpose: Packaging that doubles as storage or display. Helpful in cutting waste and adding value. Final Take: Packaging That Works For You At ¿Û¿Û´«Ã½, we support brands at every stage of growth. The best packaging solution reflects your customer promise, fits your budget and runs smoothly through your fulfillment operation. Are you ready to optimize your packaging and fulfillment? Contact us for a complimentary supply chain consultation today.
More Posts