E-commerce Logistics Services

E-commerce Logistics Services Global Market Outlook

• The global e-commerce logistics market was valued at about $320 billion in 2022 and is expected to reach a revenue of $395 billion in 2023.

• The global e-commerce logistics market is expected to grow at a CAGR of 20–25 percent between 2022 and 2030.

• China remains the top market for e-commerce followed by the US, Japan, Germany, and the UK.

Growth Drivers and Market Trends : E-commerce Logistics Services

• COVID-related boom in e-commerce

• Growing middle class population

• Rising internet penetration

• Increase in online sales post COVID-19

• Lag in offline infrastructure development

• Online shopper worldwide is estimated to reach 2.3 Billion in 2022 and is expected to grow to 62 percent in 2025. 79% of shoppers shop online at least once a month with 91% mobile purchases.

• China is the biggest market for e-commerce with a total revenue of about $1.5 trillion in 2023, growing at a rate of 15 percent annually.

Procurement Centric Five Forces Analysis: Global

Supplier Power

• The number of established providers offering e-commerce logistics solutions is limited

• Capacity constraints during high demand seasons could significantly reduce supplier availability

• Considering the above, the bargaining power of suppliers is high

Barriers to New Entrants

• Significant investment is required to provide e-commerce logistics, such as warehousing and transportation infrastructure

• Prescence of big players, like Amazon and Rakuten, create difficulty for new entrants

• Rising demand for e-commerce logistics could attract new players to the market, resulting in medium level of barriers to new entrants

Intensity of Rivalry

• Prescence of established market leaders, like Amazon and Rakuten, is expected to intensify competition amongst them

• Rising demand for e-commerce logistics is expected to attract new players to the market

• Hence, the intensity of rivalry is expected to be high

Threat of Substitutes

• Alternative to e-commerce logistics is in-house order fulfillment, which can be complex to carry out and also involves high capital

• In store sales are also increasingly being complemented by e-commerce delivery and click to collect options

• Hence, the threat of substitutes remains moderate

Buyer Power

• Due to limited number of established suppliers, the buyer has limited scope of negotiation

• With steady growth in e-commerce logistics, more suppliers are likely to enter the market, increasing the number of supplier options available

• The buyer power is hence expected to be moderate