Warehouse Wisdom. Weekly. 02/14/2025

Happy Friday!

What do stressed-out truck drivers, $10 billion in warehouse cost-cutting robots, and fake U.S. postage labels have in common? They’re all making headlines this week. If you thought trucking was a peaceful career of open roads and country music, think again—drivers are under immense pressure, leading to safety concerns and a few too many lead feet on the accelerator. Meanwhile, Amazon’s robotic overlords are expected to slash warehouse costs by a cool $10 billion, helping fuel the narrative of tech investment in logistics. And in a plot twist that surprises absolutely no one, some Chinese Temu sellers have been using fake USPS postage labels to dodge shipping costs, which is either a creative loophole or a federal offense—depending on who you ask.

This week, we’ll also be updating you on Amazon's continued conquest over Google and logistics companies, record-breaking activity at U.S. and Chinese ports, USPS Ground Advantage defying gravity, the strange case of disappearing small warehouses, and more. So, enjoy some of the Valentine’s Day chocolate and let’s dive in…

Marketplaces

It’s (almost) all about Amazon

Amazon, never one to settle for merely dominating e-commerce, has now set its sights on Google’s turf. The company is testing a new feature that pulls in products from external websites and showcases them in Amazon’s search results. In other words, even if Amazon doesn’t sell it, they’ll still make sure you find it—on their platform, of course. It’s a bold move that further cements Amazon as the one-stop shop for, well, everything. Google might still be the king of search, but Amazon is quietly rewriting the playbook on product discovery.

And speaking of dominance, Amazon has officially claimed the top spot on the Transport Topics Top 100 Logistics Companies list for North America. The company that once relied on third-party carriers is now running one of the most sophisticated logistics operations in the world. From warehouses to last-mile delivery, Amazon has built an empire that rivals traditional logistics giants. If FedEx and UPS weren’t already losing sleep, they might want to start.

So what’s Amazon’s secret sauce? Apparently, it’s a high tolerance for failure. While most companies avoid mistakes like the plague, Amazon actively embraces them. The company’s willingness to experiment (and fail, repeatedly) has allowed it to revolutionize logistics in ways that others wouldn’t dare attempt. If at first you don’t succeed, try, fail, and then let AI and a fleet of robots do it better.

But Amazon isn’t the only one winning. Shopify merchants are also raking in big numbers, with revenue and Gross Merchandise Volume (GMV) both on the rise. The platform continues to provide an alternative for businesses looking to sell without bowing to the Amazon machine.  

Global Logistics

Record breaking imports and the end of cheap e-commerce exemptions in Europe

If you thought the Red Sea shipping crisis was winding down, think again. Uncertainty over a potential ceasefire between Israel and Hamas has logistics planners bracing for yet another round of disruptions. Just when carriers started rerouting vessels back through the Red Sea, renewed instability could send them right back around Africa.

Despite geopolitical chaos, January was a banner month for U.S.-bound imports, setting a new record for inbound container volume. Leading the charge is the Port of Long Beach, which just recorded its strongest January ever (and its second busiest month of all time). Pre-tariff panic buying seems to be a major factor, as businesses rush to get goods into the U.S. before potential trade restrictions hit. Not surprisingly, Chinese ports are posting record traffic as well, with companies scrambling to push shipments out ahead of both U.S. tariffs and the Lunar New Year shutdowns. This means warehouses and distribution centers are about to get very crowded, very fast. If you think finding parking at Costco on a weekend is bad, try squeezing another container into an already packed fulfillment center.

And in a move that should surprise absolutely no one, Europe has joined the U.S. in calling for an end to the e-commerce de minimis exemption. The era of ultra-cheap, tariff-free imports may be coming to an end, and cross-border sellers are already looking for alternatives.

Logistics Vitals

The ultimate e-commerce showdown between Amazon, Walmart, and Alibaba

Amazon continues to dominate the online retail space, but Walmart and Alibaba are proving to be formidable competitors in their own ways. While Amazon still reigns supreme, Walmart is playing the long game in e-commerce, and Alibaba continues to be an international force—making this a three-way battle worth watching. Here’s how they stack up:

• Amazon’s 2024 web revenue in the U.S.: $448.64 billion, making it the largest e-commerce retailer in North America.

• Walmart’s e-commerce numbers: Amazon holds a commanding lead over Walmart, who earned $120.2 billion in internet revenue in 2024 in North America, a distance second place.

• Alibaba’s dominance across the globe: $1.48 trillion in revenue, maintaining its stronghold in the global marketplace.

Freight and Shipping

USPS delivers, green shipping stalls, and Walmart fights the war on wilted lettuce

The USPS Ground Advantage program is finally living up to its name—now that it's cut out the middlemen. Since eliminating consolidators, the Postal Service has seen a surge in package volume, proving that sometimes, less really is more. Postmaster General Louis DeJoy credits the program’s success to improved reliability and competitive pricing, which is a refreshing change of pace for a service that’s historically been known for.

Meanwhile, small businesses are in a bit of a sustainability dilemma. A new DHL survey found that two-thirds of small businesses say sustainable shipping is important—but only half are actually willing to pay for it. Turns out, everyone loves the idea of a greener supply chain, as long as it doesn’t cost them anything extra. In the eternal battle between profit margins and environmental responsibility, it seems cost efficiency is still king.

Walmart, however, is making moves to keep both consumers and fresh produce happy. The retail giant is teaming up with GreenPod Labs on a new technology designed to extend the shelf life of fruits and vegetables during transport. If successful, this could significantly cut down on food waste, improve inventory management, and—most importantly—reduce the odds of customers picking up a bag of salad that’s already halfway to compost.

Industrial Warehouse Space

The case of the disappearing warehouses: U.S. and Mexico edition

If you’re looking for a small warehouse, you might have better luck finding a unicorn. The U.S. is facing a shortage of smaller industrial spaces, as demand for last-mile logistics and e-commerce fulfillment centers continues to outpace supply. With developers favoring massive distribution centers over more modest footprints, small and mid-sized businesses are left scrambling for storage space—unless, of course, they’re willing to pay a premium (and then some).

And if you were hoping to find relief south of the border, think again. In Mexico, nearshoring has pushed warehouse vacancy rates to historic lows, as manufacturers and logistics firms rush to set up shop closer to the U.S. With space disappearing fast, businesses trying to secure a foothold in Mexico’s booming logistics scene may need to act fast—or start rethinking their real estate strategies.

Warehouse Quick Deliveries

Collisions, closures, tariffs, and $184 Billion in supply chain headaches

• USS Harry S. Truman collides with merchant vessel near Egypt.

• JCPenney announces wide ranging store closures.

• Reciprocal tariffs have been announced.

• What’s the cost of global supply chain disruptions? $184 Billion?