Logistics costs are a key and growing component in the expansion of e-commerce. The best example is Amazon, which has seen the weight of transportation and delivery costs rise from less than 20% of its net sales in 2012 to more than 30% in 2020. There are several reasons behind this, such as the expansion of its distribution network to gain market share and the addition of a large number of low-margin, bulky products, such as appliances and furniture. With this evolution, Amazon is becoming a competitor in the logistics business. With some 100,000 containers under contract, Jeff Bezos' company is one of the 10 largest Non-Vessel-Operating Common Carriers—entities that perform all shipping line services but do not own or operate ships—on the route between Asia and the United States and is considered a disruptive force in the shipping agent business on that route. Through its multi-channel option, Amazon, in addition to transporting products sold through its platform, offers Chinese companies fulfillment services for sales made through channels other than Amazon.
