Research Proposal

Logistics Spend


To determine the current market size and projected growth rate of the US logistics industry as well as the total amount spent by the healthcare industry, the retail industry, and the food industry on logistics operations.

Early Findings

  • The logistics costs of businesses in the United States rose 11.4% to reach $1.64 trillion in 2018.
  • Third-Party Logistics in the US, comprising of services such as FedEx and UPS, is expected to reach $194.2 billion by the end of 2019. The entire North American third-party logistics market is expected to grow at a rate of 6% between 2018 and 2027.
  • According to a recent report by McKinsey, brick and mortar stores typically spend as much as 5% of their product revenue on logistics, while e-commerce companies spend as high as 20% of their total revenue on shipping and delivery operations.
  • The US Department of Commerce estimates consumers spent $513.61 billion online (e-commerce purchases) and $3,628 billion in stores in 2018, although not all of these goods were shipped directly to the consumers.
  • According to a recent study by Cision, e‑commerce logistics costs grew to $117.2 billion in 2017—representing 6.9% of total U.S. logistics costs. Overall, e‑commerce logistics cost is projected to grow at a rate of 18.8% through 2020.
Prepared By
Gbolahan G.
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