The trend: Major retailers like Costco, Amazon, and JD.com are building out their own logistics networks as they aim to reduce their reliance on third-party delivery partners.
Why this matters: Logistics—particularly last-mile fulfillment—is becoming a priority for retailers looking to streamline their shipping processes and meet customers’ expectations for rapid delivery.
At the same time: As retailers beef up their own shipping networks or partner with companies like Instacart and DoorDash that can offer rapid delivery, third-party logistics companies are struggling to keep up.
The big takeaway: Building a logistics network is expensive, but it’s also a profit opportunity: Retailers can allow other businesses to use their delivery services, thereby offsetting some of the costs.
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