Global e-commerce logistics market to reach US$544bn by 2024
Transport Intelligence’s (Ti) new report has revealed that the global e-commerce market is set to be worth €500bn (US$544bn) by 2024.
The report, “Global e-commerce Logistics 2020”, has showcased the rapid growth in the e-commerce market and has revealed the market has risen by 16% during 2019, with online sales showing no signs of slowing in mature e-commerce markets. The report reviewed data from the cost of logistics from over 20 retailers across geographies and retail industries. The data showed that “logistics costs as a percentage of sales have essentially remained flat at 15% for much of the last decade.”
Ti's findings added that this halt in growth is despite large investments in infrastructure, technology and automation from logistics service providers (LSPs) as they seek to boost efficiency and create more value.
“E-commerce presents quite a puzzle for logistics service providers. On the one hand its growth is phenomenal and the potential for value creation is incredibly attractive,” commented Nick Bailey, Head of Research, at Ti. “On the other, there’s a battle to keep costs down as retailers heap pressure onto their supply chain partners to limit costs while improving service levels at the same time.”
“It would have been hoped that the huge investments in infrastructure, automation and other technology seen over the decade last would be reducing costs, but that’s not happened market-wide; and costs, especially in fulfilment, have risen dramatically.”
However, the report adds that LSPs are unlikely to reap many benefits of the growth, as retailers continue to pressurise their supply chain partners to limit costs while improving service levels in tandem.
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