Global E-Commerce Fulfillment Services Market Outlook Report - Market Size, Share Analysis and Forecast (2024-2032)

Global E-Commerce Fulfillment Services Market Outlook

The global e-commerce fulfillment services market size was valued at USD 102.84 billion in 2023. The market is further projected to grow at a CAGR of 9.2% between 2024 and 2032, reaching a value of USD 227.07 billion by 2032.

Key Takeaways

• In 2021, global e-commerce sales surpassed USD 5 trillion.

• 79% of e-commerce companies use a third-party logistics company for at least one channel of fulfillment.

• It is anticipated that 51% of shoppers will adopt for same-day delivery by 2025.

• Software solutions are used by 65% of eCommerce businesses for order fulfillment.

E-commerce fulfillment services include the processes and activities involved in delivering online orders to customers. They include picking, packing, shipping, tracking, and managing inventory and returns of e-commerce products. E-commerce services can be fulfilled either from the in-house fulfillment centres or third-party warehouses that charge based on the volume, storage, and weight of the inventory.

The e-commerce fulfillment services market is expected to grow significantly in the coming years, owing to the increasing demand for online shopping. The rising adoption of omnichannel retailing, the emergence of new technologies and automation, the expansion of cross-border e-commerce, and the need for cost-effective and efficient fulfillment solutions are other factors driving the e-commerce fulfillment services market growth. E-commerce fulfillment services can help online retailers improve customer satisfaction, loyalty, and retention, as well as enhance their competitive edge and profitability.

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Key Trends and Developments

Rising demand for same-day or next-day delivery, increasing use of automation and robotics, and growing adoption of omnichannel retailing are boosting the market growth

Global E-Commerce Fulfillment Services Market Trends

The accessibility to shop from anywhere through smartphones has significantly reduced the amount of time and efforts spent on shopping, which is a major factor contributing to the e-commerce fulfillment services market development.

Moreover, the deployment of latest technologies like robotics and automation into the e-commerce fulfillment services market has resulted in increased productivity and helped speed up delivery times. This trend is likely to add to the e-commerce fulfillment services market growth.

In addition, due to a significant number of sales being generated from metropolitan areas, the location of the fulfillment centres is of prime importance. Thus, the concentration of sizeable fulfillment centres near significant cities is a major contributor to the e-commerce fulfillment services market expansion as it reduces the cost of transportation and shipping services.

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Market Segmentation

Global E-Commerce Fulfillment Services Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Beauty and personal care products captures the largest market share due to the high influence of social media and wide availability of these products on online websites

In types of products, beauty and personal care segment is anticipated to lead the e-commerce fulfillment services market share in the forecast period. Beauty and personal care include products such as cosmetics, skincare, haircare, fragrances, oral care, and personal hygiene. Global online sales of beauty and personal care products reached USD 65.6 billion in 2020, growing by 20% from 2019. The main drivers of this segment are the rising demand for natural and organic products, the influence of social media and influencers, and the convenience of online shopping. Some of the leading online retailers in this segment are Amazon, Alibaba, Sephora, and Nykaa.

Consumer electronics segment in order fulfillment market includes products such as smartphones, tablets, laptops, desktops, TVs, cameras, audio devices, gaming consoles, and accessories. The segment’s growth is driven by the increasing adoption of smart devices, the emergence of new technologies such as 5G and IoT, and the growth of online platforms such as Amazon, Best Buy, and JD.com. Furthermore, the growing demand for consumer electronics and the need for proper multi-layer packaging for electronics to rule out the risk of damage during transit is propelling the demand for e-commerce fulfillment services.

Clothing and footwear includes apparel, shoes, bags, jewellery, and accessories. This segment is expected to see a steady growth in the coming years, due to the increasing preference for fast fashion and sales of clothes online. With frequently changing fashion trends, people are buying new clothes and shoes at a faster rate. The global online sales of clothing and footwear reached USD 525.1 billion in 2020, which, in turn, can increase the overall e-commerce fulfillment services market size as well.

Shipping and bundling services contribute significantly due to high implementation of trade-liberalisation policies in various countries

According to e-commerce fulfillment services market report, bundling services allow online retailers to pack multiple items in one package, which can reduce shipping fees and enhance customer loyalty. Shipping services involve transporting the products from the fulfillment centers to the customers' addresses using various carriers, such as couriers, postal services, or freight forwarders. Warehousing and storage services refer to storing the products in suitable and safe locations and handling the picking, packing, and dispatching of orders.

The growth of the shipping services segment in e-commerce fulfillment services market is expected to be driven by the increasing trade-liberalisation policies of various countries and the growing cross-border shipments globally. Besides, the growing inclination of the population towards international brands and imported items, in line with their rising disposable incomes has further compelled the growth of this segment and has positively impacted the e-commerce fulfillment services market outlook.

The warehousing and storage services segment on the other hand, held a considerable e-commerce fulfillment services market share due to the incorporation of automated mobile robots (AMR) and augmented reality (AR) which has increased warehousing efficiency. Robotic order picking and automated stacking systems are expected to drive this segment’s growth.

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Competitive Landscape

Market players are focusing on services and fleet expansion to gain a competitive edge in the market and to fasten their delivery services

Other market players in global e-commerce fulfillment services market include ShipNetwork, ShipBob, Inc., Shipfusion Inc., Xpert Fulfillment, Sprocket Express Plainville, MA, and FedEx Corporation, among others.

Global E-Commerce Fulfillment Services Market Analysis by Region

North America is one of the prominent regions due to increasing e-commerce retail sales

The e-commerce fulfillment services market in North America is expected to witness significant growth due to the high penetration of internet and smartphone users, the presence of major e-commerce platforms such as Amazon and Shopify, and the increasing demand for online shopping. According to the U.S. Census Bureau, the e-commerce retail sales in the U.S. reached USD 791.7 billion in 2020, an increase of 32.4% from 2019. The e-commerce fulfillment services providers in the region are offering innovative solutions such as same-day delivery, curbside pickup, and contactless delivery to cater to the changing consumer preferences and expectations.

According to the e-commerce fulfillment services market report, Asia Pacific region is anticipated to be the fastest-growing market during the forecast period, owing to the rising disposable income, growing middle-class population, and expanding e-commerce sector in the emerging economies such as India, China, Indonesia, and Vietnam. According to the United Nations Conference on Trade and Development (UNCTAD), the e-commerce sales in the Asia Pacific region accounted for 50% of total sales in 2019, with China being the largest e-commerce market in the world. The e-commerce fulfillment services market in the region is also driven by the increasing adoption of digital payment methods, the availability of low-cost labour and land, and the supportive government policies and initiatives to promote e-commerce development.

The e-commerce fulfillment services market in the Middle East and Africa is projected to grow at a moderate rate during the forecast period, due to the improving internet infrastructure, the rising popularity of social media and online platforms, the growing awareness and trust among consumers, and the emergence of local and regional e-commerce players. According to statistics, the e-commerce revenue in the Middle East and Africa region amounted to USD 28.8 billion in 2020 and is expected to reach USD 54.7 billion by 2025. The e-commerce fulfillment services market in the region is also influenced by the increasing demand for cross-border e-commerce and the development of the logistics and transportation sector.

Furthermore, the European e-commerce fulfillment services market is estimated to witness substantial growth during the forecast period, due to the high internet and e-commerce penetration, the presence of well-established e-commerce platforms such as Alibaba, Amazon, and Zalando, and the growing consumer preference for online shopping. According to the European Commission, the e-commerce turnover in Europe increased by 12.7% in 2020. The market in Europe is also supported by the advancement of technologies such as artificial intelligence, robotics, and cloud computing, the integration of omnichannel strategies, and the favourable regulatory framework for e-commerce.

Key Highlights of the Report

E-Commerce Fulfillment Services Market Report Snapshots

E-Commerce Fulfillment Services Market Size

E-Commerce Fulfillment Services Market Trends

E-Commerce Fulfillment Services Market Share

E-Commerce Fulfillment Services Companies

E-Commerce Fulfillment Services Market Regional Analysis