Average order fulfilment time in 3PL warehouses 2020-2024
The landscape of order fulfillment in third-party logistics warehouses is rapidly evolving, with a growing emphasis on speed and efficiency. In 2024, nearly 30 percent of 3PL professionals reported average order processing times of less than 30 minutes, marking a significant improvement from 2020.
Shifting focus in 3PL services
As order fulfillment speeds increase, 3PL warehouses are also expanding their service offerings to meet changing market needs. Return management services have gained prominence, with 59 percent of 3PL warehouses offering this service in 2023, up from 54 percent two years prior. This shift underscores the growing importance of efficient reverse logistics in the e-commerce era, where seamless returns processes have become a crucial aspect of customer satisfaction.
E-commerce impact on logistics landscape
The rise of e-commerce continues to shape the logistics industry, influencing everything from warehouse operations to property leasing trends. In 2023, e-commerce companies occupied 15.3 percent of big box industrial property space in Cincinnati, establishing the city as a key hub for online retail logistics. This trend highlights the increasing demand for strategically located warehousing facilities to support the growing e-commerce sector. As 3PLs adapt to these changes, they face the challenge of balancing speed with cost-effectiveness, particularly in shipping, which accounts for 88 percent of e-commerce fulfillment costs in the United States.
