Overview of Logistics Companies in the United States
Did you know that there are over 175,000 eCommerce businesses in the United States? And out of those businesses, only a handful can successfully manage their logistics and supply chain needs. So, if you're an eCommerce business looking for a reliable and experienced logistics company in the United States, you've come to the right place.
The United States is the largest economy globally, most of which can be attributed to three factors - area, resources, and technology. As a result, it is one of the most technologically advanced countries, home to the largest eCommerce companies and consumer markets globally.
One of the biggest reasons the US has been successful is its state-of-the-art logistics industry which forms almost 8% of its economy. Logistics is a big part of the "American dream," ensuring that products from all over the nation reach consumers throughout the country promptly.
The US is home to some of the world’s largest ecommerce transportation management companies that help businesses connect with domestic and international customers for supply chain solutions. However, the sheer number of options for ecommerce logistics companies in the United States can easily overwhelm anyone looking for an ideal solution.
Further, understanding the extensive logistics industry in the US is arduous. Therefore, this article is an exhaustive guide to understanding which logistics service provider companies in the USA are best for ecommerce business owners.
Top 10 Logistics Companies in the United States of America (USA) for eCommerce Businesses [2023 Updated List]
The eCommerce industry is booming, and businesses are looking for ways to get their products to consumers as quickly and efficiently as possible. If you're looking for the best logistics company in the US that can help you keep up with demand, here are the top logistics service provider companies in the United States.
We looked at factors such as shipping speed, transportation services, price, and customer service and ranked the companies accordingly. So whether you're just starting or looking for a new partner, check out our global logistics providers' list and see which company is best for you.
UPS is one of the largest shipping companies in the US. It is an international carrier established in 1907 toward the end of the first world war. The company employs over 500,000 people worldwide, processing over 4.7 billion packages annually & shipping items to 220+ countries and territories globally.
UPS offers a web-based platform that allows users to generate and print shipping labels, schedule pickups, send notifications on the shipment status, and more.
It enables businesses to ship bulk orders and also provides customs clearance solutions. In addition, the carrier facilitates cross-border commerce and provides international freight services through air, sea, and surface while providing reverse logistics solutions.
DHL is a leading American logistics company established in 1969, was acquired by the postal giant Deutsche Post Group in 2001 and has since become one of the largest international carriers in the world.
It employs 400,000+ people worldwide, which helps the company process over 1.8 billion shipments yearly. Further, its vast network allows businesses in the USA to reach customers in more than 220 nations.
DHL offers a wide variety of logistics solutions, including freight services via air, sea, and surface transportation, express shipping services, and solutions for shipping heavy items and sensitive items.
In addition, it offers dedicated solutions for eCommerce companies in the USA, even facilitating cross-border commerce and reverse logistics.
FedEx, formerly known as Federal Express, is a popular logistics company in the USA founded in 1971. It is one of the world’s largest shipping and logistics service providers in the US, with over 600,000 employed across seven continents, processing an average of 12.5 million packages daily.
Additionally, it maintains one of the largest shipping networks globally, which allows its clients to reach over 220 nations and territories across the globe.
FedEx has an extensive service portfolio ranging from various express shipping options such as overnight shipping, same delivery, and next-day delivery.
It is a major freight forwarding company and a customs brokerage service provider. The company allows businesses to transport items of all sorts, including heavy, sensitive, and dangerous goods.
The United States Postal Service, or the USPS, is a government-owned agency that offers logistics and postal services in the USA. It is one of the biggest logistics companies in the country and employs over 600,000 people across 50 states.
It was established in 1971 in Washington and currently operates as an independent and self-funded body under the executive branch of the government.
The USPS allows businesses to send shipments throughout the US and to countries abroad. It provides order tracking facilities and enables users to generate shipping labels through its platform.
In addition, the company offers value-added services such as insurance, proof of delivery services, reverse logistics, cash on delivery, signature services, and more.
5) C. H. Robinson Logistics Firm
H. Robinson, named after its founder Charles Henry Robinson, is a significant logistics company in the US. The company was founded more than 100 years ago in North Dakota. However, it is currently headquartered in Minnesota. It manages 19 million shipments per year for its 105,000+ customers with the help of its 16,000+ employees.
The company is popular for offering international freight service through air, ocean, and surface. It allows businesses to send items using its FTL (full truckload), FCL (full container load), LTL, and LCL solutions. It offers solutions to supply chain management, 3PL, last-mile delivery, warehousing, and more.
6) Kuehne + Nagel
Kuehne+Nagel is an international shipping and logistics service provider with operations in the US. It maintains over 1000 offices in 109 countries worldwide, with more than 80,000 employees. It has a customer base of more than 400,000 businesses and has been one of the world's best ocean transportation companies for over 100 years.
The company is famous for its vast ocean transportation network and is a leading provider of freight forwarding services globally. It also offers freight solutions via air, rail, and surface transportation.
The company provides various logistics services, including warehousing, project logistics solutions, customs clearance services, supply chain management, and more.
7) J. B. Hunt
J.B. Hunt is an American logistics company known for offering surface transportation solutions. It was founded in 1961 and is headquartered in the state of Arkansas.
The platform owns a fleet of over 12,000 trucks and employs more than 24,000 people throughout the country. J. B. Hunt offers technology-driven solutions to place, manage and track orders.
It offers intermodal logistics solutions, LTL and FTL shipping services, specialized delivery solutions, temperature-controlled shipping, and more.
8) XPO Logistics
XPO Logistics is a leading freight logistics solutions provider in the United States. It was founded in 1989 and is currently headquartered in Connecticut. The company has a presence in 756 cities across 20 countries, employing over 42,000 people to serve its 50,000+ customer base.
XPO Logistics specializes in surface transportation solutions such as LTL, FTL, drayage, intermodal logistics, and more.
It also allows businesses to outsource logistics operations through its managed transportation service. Apart from these, it facilitates cross-border commerce and provides global freight forwarding and last-mile delivery services.
Schneider Logistics is a major ecommerce logistics provider in the US founded in 1935. It manages a fleet of 9,000+ tractors and approximately 36,900 trailers with the help of its 15,000+ employees. The company owns and operates over 180 facilities worldwide that help it complete over 9.2 million freight miles daily.
Schneider Logistics offers transportation solutions, including LTL and FTL services, intermodal logistics, bulk transport, specialized transportation, and flatbed solutions. It allows businesses to make long-haul shipments and provide carrier brokerage services, warehousing solutions, and international shipping services.
Ceva Logistics is an international supply chain management and logistics service provider in the United States of America. It operates in over 160 countries worldwide, including the United States of America.
It owns and operates over 1000 fulfillment centers across the globe and allows businesses in the USA to make international shipments.
Ceva offers state-of-the-art warehouse management software and allows businesses to manage their inventory and optimize warehouse operations.
It offers international shipping and freight solutions and several 3PL services, including warehousing, customs clearance, cargo insurance, and reverse logistics. Additionally, the company also offers last-mile delivery solutions.
How to Choose the Best Logistics Company in the United States of America (US)?
Different services, many providers, and several other factors make it tough for businesses to choose which ecommerce logistics companies in the United States would be a valuable addition to their ecommerce operations.
When making this choice, there are several factors to consider, including the company's size, experience, and track record. In addition, it's important to evaluate the cost and level of service offered by potential providers. By considering all of these factors, businesses can select the right logistics partner to help them grow their business.
Here is a list of factors businesses must consider before partnering with a logistics service provider in the United States.
Pricing is one of the most important factors in any partnership. Similarly, logistics cost is a major element in choosing a carrier. The industry comprises options that offer excessively cheap to extremely expensive solutions. However, it is important to strike a balance.
The cheapest option in the market is likely poor in quality and would eventually lead to higher spending in the form of losses and compensations. On the other hand, the most expensive option may be unsustainable for the business.
Therefore, the only logical solution is to understand a company's affordability and select a reasonably priced partner that maintains high-quality standards.
The area served by a logistics company is critical to the success of any business. It not only defines if the business can cater to its existing customers but also determines if the company allows businesses to expand to newer markets and gain more customers.
Ideally, a logistics company with a higher coverage area has more efficient operations owing to the large network. Choosing a company with wider serviceability is also advisable to account for future growth prospects.
3. Size and Weight Restrictions
Logistics companies in the US and worldwide often restrict the size and shape of the products they would move. The restrictions are likely to become a hindrance for a business if its product portfolio includes items that are unconventional in their proportions.
Therefore, businesses must understand the need for their products and choose a logistics company for their businesses that can deliver such items to their destination.
4. Types of Services Offered
Different logistics companies often offer different services. When choosing a logistics service provider, it is important to understand what services are required by the enterprise and look for solutions that cater to them.
Logistics companies can be chosen based on order volumes and value-added services that enhance business operations and growth. For example, intermodal freight transport, sustainable packaging, same-day deliveries, and multiple payment options.
Different logistics companies provide different services and specialize in certain solutions. When businesses are looking at logistics companies as partners for their operations, they should consider providers specializing in solutions that directly help their needs.
For example, businesses may rely on courier partners offering weekend and next-day deliveries and mandatorily capture customers' signatures as proof.
Should a company partner with a solutions provider specializing in a domain directly impacting an enterprise's operations, the operations are likely to become more efficient.
6. Value-Added Services
Value-added services are a category of solutions supplementary to a provider's flagship solutions. Businesses often overlook them; however, they are an important addition to the services availed by an enterprise. VASs provide companies with additional services that make logistics more efficient and cost-effective.
7. Reverse Logistics
Managing returning products has become critical to businesses, especially since the advent of online commerce. Customers often return products if they do not like them or find them different from what they expected. Therefore, in a cutthroat market, businesses need to provide logistics services to their
8. Shipping Exceptions Management
Shipping exceptions or stuck shipments are incidents where an item is stalled in transit while being sent to its destination. Exceptions may occur for various reasons, including weather conditions and incorrect information.
Furthermore, there may be issues with the route or perhaps even issues with personnel handling the shipment. Ideally, businesses must look for partners with a mechanism in place to deal with stuck shipments and have maintained a low rate of exceptions throughout their operations.
9. Previous Performance
A business's past performance provides insight into its capabilities and lets clients understand if the partnership would be fruitful.
Therefore, companies must look at all prospective partners' reviews and previous clientele when looking for logistics partners. Through research and understanding, businesses would know if a particular logistics company is reliable or not.
10. Number of Payment Options
The number and kind of payment options an ecommerce company offers can be influenced by the carrier or logistics companies they team up with. To ensure the best customer support and shopping experience, offering multiple modes of payment is the best strategy.
Therefore, choosing a logistics company in the US that offers several different payment methods like bank transfers, credit/debit cards, net banking, RazorPay, PayPal, Cash on Delivery, and more is essential.
11. Customer Service
Ecommerce and e-commerce logistics are both customer-facing businesses that cannot do without solid customer support. Online shoppers want to know where their orders are at any given moment and may have queries or complaints regarding the shipping process or the order itself.
Ideally, you would want to provide the kind of shipping and shopping experience that does not make your customer want to call you up.
But you must always keep the option available to them or face the consequences of negative feedback and customer loyalty. The best logistics company is one with good customer service that will help soothe anxious nerves and increase brand engagement and loyalty.
12. Real-time Order Tracking
One of the things an ecommerce company simply can’t do without is a live order tracking feature. Most top logistics companies in the United States of America provide some form of order tracking mechanism.
But if you want to provide the best post-purchase experience to your customers, pick a logistics company in the US that provides real-time order tracking.
More importantly, you need to be able to send those order tracking updates to customers on their mobile phones. Such logistics companies usually notify the customer when their order is shipped and provide a tracking id or number that they can use to check the status of their order at the courier site.
What is a Logistics Company, and Why Do They Matter for the United States-based eCommerce Companies?
When people hear the word "logistics," they probably think of truck drivers, shipping routes, and supply chains. While all those things are part of the logistics industry, there's so much more to it. Logistics is one of the most critical aspects of any business, eCommerce or otherwise.
An ecommerce logistics company is a business that provides transportation and freight forwarding services, as well as integrated logistics solutions to companies of all sizes.
They can help eCommerce businesses manage their inventory, get products to their customers quickly and efficiently, and streamline the entire order fulfillment process. By working with a reputable logistics company in the US, eCommerce businesses can reduce costs and improve their bottom line.
This is an essential requirement for eCommerce businesses, as timely and accurate delivery is critical to maintaining customer satisfaction. There are many logistics companies in the USA for ecommerce, each with its strengths and weaknesses. It's important to do your research before selecting one to work with.
5 Different Invaluable Types of Services Provided by Logistics Companies in the United States (US)
When it comes to logistics companies, there are a variety of services that they can provide. This includes transportation, warehousing, and fulfillment. It is important to understand their different services to get the most out of your logistics partner.
By doing so, you can ensure your business is getting the most comprehensive logistics solution possible. Here is a list of some of the different services logistics companies provide in the United States.
Shipping, delivery, and transportation have always been the core offering of logistics companies. Although logistics service providers in the US offer solutions specific to a stage, most companies provide solutions that can be used to move from one location to another.
Shipping services allow companies to connect with customers within and outside the US, facilitating cross-border commerce and propagating an international economy.
Warehousing services are another important solution offered by logistics companies in the United States of America for ecommerce. It helps businesses store all sorts of items in a secure location to process and dispatch as and when required.
Warehouses are often strategically located, allowing businesses to store products in locations closer to their customers, enabling faster order fulfillment.
3) Reverse Logistics
The reverse logistics process helps businesses, especially eCommerce companies, handle the returning lifecycle of a product that was either not accepted by the customer, as undelivered, or was replaced or returned by the customer.
The solution is to receive the product back from the final delivery location and send it back to the original warehouse or hub where it was stored.
4) 3PL Solutions
Third-party logistics is an umbrella term for a host of services that supplement the moving of products. It involves a provider that offers a variety of logistics solutions as a service to improve the quality and efficiency of the entire operation.
3PL services include, inter alia, customs clearance, distribution of goods, inventory management, packaging and labeling solutions, and more.
5) eCommerce Fulfillment
ECommerce order fulfillment services are one of the biggest US logistics companies' biggest offerings today. It includes several solutions such as shipping, drop-shipping, warehousing, and reverse logistics and is more dedicated to serving the eCommerce industry. Since the industry exists in the digital space, the logistics sector allows online sellers to connect with their customers.
The logistics industry is responsible for supporting several sectors of the economy of the USA. From manufacturing and materials handling to eCommerce, the logistics industry is essential for the survival and growth of the US economy.
Owing to the large area, third-largest population, and high spending power of the country, the number of options available in the US for logistics operations is abundant.
We have provided you with the list of the best ecommerce courier companies in the US that provide services ranging from freight forwarding, warehousing, supply chain management, expedited shipping, and delivery. These courier companies in the US will give you an edge over your competition by providing an excellent post-purchase customer experience.
If you are looking to start a business or want to grow an existing one further with international sales channels, pairing with an ecommerce company is essential for success. Our team can help make this happen seamlessly while saving logistics costs, time, and money. Did any of these options catch your eye? Let us know!
FAQs on Top 10 Logistics Companies in the United States for Online Businesses
7.1. Which are the best logistics companies in the US?
Some of the best logistics companies in the United States for ecommerce shipping are FedEx, UPS, USPS, DHL, Ceva Logistics, etc. These logistics companies provide domestic and international shipping for online businesses.
7.2. Which is the cheapest logistics company in the US?
The cheapest logistics company in the US for ecommerce shipping is USPS. It has the cheapest shipping rates and also offers several discounts.
7.3. How to select the best logistics provider for my ecommerce business?
To select the best logistics company in the United States for your ecommerce business, figure out what your business goals are, how much budget you can allocate for the logistics expenses, and which areas you want to deliver to. A clear answer to these questions will help you find the best ecommerce logistics company in the USA for your business.