The rapid expansion of online marketplaces is reshaping the logistics industry. Before the pandemic, independent operators accounted for nearly 35% of the internet order delivery segment; by the end of last year, that share had dropped to just over 5% – despite the total volume of parcels rising to 7.7 billion. This trend clearly illustrates the serious threat that marketplaces pose to conventional carriers.
In practice, almost all cargo movement from distribution centers to pickup points is handled by the marketplaces’ own fleets. The logistics structure differs, however, when it comes to last-mile delivery to end consumers: major e-commerce players often outsource this stage to third-party transport companies that specialize in less-than-truckload (LTL) shipping. However, marketplaces may soon expand into this segment as well. Last year, for example, one of the country’s largest online retailers acquired its own freight transportation company.
Companies operating in the full truckload (FTL) segment, such as SALAIR, increasingly compete with marketplaces’ in-house logistics fleets, which transport goods between distribution centers. By acquiring transportation companies, major e-commerce platforms can further reduce their reliance on third-party carriers. As a result, the external transportation market could contract by as much as 20% as marketplaces continue to expand their own fleets. The main constraint on this trend may be the broader economic environment, in which investing in an in-house transport network could prove less attractive than expanding digital platforms that connect independent fleet owners.
However, there are exceptions. For many transport companies operating circular routes, marketplace shipments provide a convenient way to utilize vehicles on return trips. In addition, some marketplaces offer guaranteed freight volumes on fixed routes, making it easier for carriers to plan their operations and allocate resources. These opportunities, however, are not available to all transport companies.
Large brands and retailers of premium goods, for whom packaging quality and cargo presentation are of paramount importance, also frequently choose to work with professional logistics providers. When selling across multiple marketplaces simultaneously, they find it more efficient and convenient to rely on a single logistics operator.
At the same time, marketplaces’ emphasis on one- or two-day delivery places considerable pressure on all participants in the supply chain. In pursuit of profitability, logistics companies often agree to these demanding delivery deadlines and are forced to operate at the limits of their capacity. Drivers may violate mandatory work and rest schedules, increasing the risk of road accidents. Furthermore, even higher rates for expedited deliveries do not always offset the additional costs associated with assigning two drivers to a single trip and ensuring full regulatory compliance. In addition, marketplaces impose stringent requirements regarding warehouse automation, cargo handling, and gate appointment procedures (FBO/FBS), requiring carriers to continuously upgrade their IT systems and operational equipment.
Consequently, cooperation with marketplaces is often not economically viable for large transport companies that have developed their own IT platforms and offer comprehensive logistics services. Instead, these companies prioritize expanding their own partner networks and enhancing their internal service ecosystems. This strategic approach will enable them to avoid potential losses as marketplaces continue to expand their presence in the e-commerce sector.
By Artem Gorodetsky, CEO, SALAIR