6 days ago
Growth in last-mile delivery for big and bulky e-commerce items has slowed by half because stagnant home sales mean people are ordering fewer large-ticket discretionary items like furniture and appliances, cutting into profit margins, according to a report from Armstrong & ******* ociates and the National Home Delivery ******* ociation.
Armstrong & ******* ociates estimated the $10.6 billion market for residential delivery of oversized and heavyweight items will grow at a 5.1% compound annual rate through 2027, down from 10.6% over the past eight years, reaching an estimated value of $12.3 billion. Winning service providers will be those that can best execute core, commoditized services such as white-glove delivery, time-definite, returns and in-home ******* embly.
The expansion continues to be driven by major retailers and e-commerce platforms, including Amazon, Wayfair, Home Depot and Lowe's, which have made large-format products central to their online offerings. Many third-party logistics providers (3PLs) support them, primarily utilizing independent contractors and freight brokerage operations, but the work is more complex and cost-intensive than for final-mile couriers in parcel networks who simply drop off packages at doorsteps, or in mailboxes.
As more consumers purchase ******* bersome products online, carriers face growing pressure to provide not just transportation to the curb, but a premium, in-home delivery experience that may include setup, installation, and even haul-away services, while keeping costs under control, the report said.
Demand for exercise equipment, mattresses, furniture and other large items is closely tied to switches in living locations. When people and businesses move, they tend to upgrade items, or add new ones to fill larger ******* es.
#home #associates #furniture
Armstrong & ******* ociates estimated the $10.6 billion market for residential delivery of oversized and heavyweight items will grow at a 5.1% compound annual rate through 2027, down from 10.6% over the past eight years, reaching an estimated value of $12.3 billion. Winning service providers will be those that can best execute core, commoditized services such as white-glove delivery, time-definite, returns and in-home ******* embly.
The expansion continues to be driven by major retailers and e-commerce platforms, including Amazon, Wayfair, Home Depot and Lowe's, which have made large-format products central to their online offerings. Many third-party logistics providers (3PLs) support them, primarily utilizing independent contractors and freight brokerage operations, but the work is more complex and cost-intensive than for final-mile couriers in parcel networks who simply drop off packages at doorsteps, or in mailboxes.
As more consumers purchase ******* bersome products online, carriers face growing pressure to provide not just transportation to the curb, but a premium, in-home delivery experience that may include setup, installation, and even haul-away services, while keeping costs under control, the report said.
Demand for exercise equipment, mattresses, furniture and other large items is closely tied to switches in living locations. When people and businesses move, they tend to upgrade items, or add new ones to fill larger ******* es.
#home #associates #furniture
