E-commerce logistics market jumps nearly 30% in 2020

Global market grew by 27.3% last year

Online retail demand and heightened consumer requirements for rapid delivery pushed the global e-commerce logistics market to grow by 27.3% in 2020.

According to a report by Ti, the global e-commerce logistics market is expected to grow at a CAGR of 8.6% between 2020-25. The market could hit 557bn euros by 2025.

The flipside of this growth is a massive need for investment driven by the costs of fulfilling e-commerce, particularly in the last mile as customers looked to get same or next day delivery.

Ti estimates costs of last-mile services represent 53% of logistics costs, with fulfilment accounting for the other 47%.

This is why logistics costs as a percentage of sales are continuing to rise. Companies are being forced to make network investments to secure long-term reach. Market leader Amazon’s logistics costs have increased as a percentage of their business from 17.8% in 2011 to 31% in 2020.

Constraints on last-mile provision and capacity continue to hinder e-commerce growth and are driving the need to put inventory management at the heart of e-commerce strategy.

comments powered by Disqus