E-commerce Fulfillment Services Industry Overview
The global e-commerce fulfillment services market size was valued at USD 86,449.97 million in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 9.5% from 2022 to 2030.
The proliferation of electronic commerce and the resulting rise in the number of online buyers, especially in emerging economies is anticipated to fuel market growth. Fulfillment service centers enable online merchants to outsource services including bundling, warehousing, shipping, and other value-added services, such as return management and urgent parcel service. A fulfillment center is ideal for merchants that do not have robust warehousing capabilities to manage inventory directly and do not want to invest additional efforts in shipping.
Gather more insights about the market drivers, restrains and growth of the Global E-commerce Fulfillment Services Market
In addition, e-commerce fulfillment services can be managed in-house by the online merchant too. Several consumers prefer ordering products online over in-store shopping due to several benefits offered in terms of convenience, cost, variety of choices, and lead time. E-commerce businesses significantly depend upon the warehousing and shipping capabilities to get products transported from manufacturing units/retailers to end-users in a shorter lead time. Traditionally warehousing was highly labor-intensive, however, in recent years, merchants have begun automating operations within the aisles of modern warehouses to minimize human intervention and thereby improve fulfillment productivity and reduce order delivery time.
For instance, Amazon.com, Inc. uses robots in its fulfillment centers to assist associates in performing operations and drive faster shipping times. With the majority of online purchasing sales coming from the urban area, and consumers increasingly demanding product delivery in the shortest possible turnaround time, the location of a fulfillment center is of strategic importance to e-commerce companies. Having centers near major cities that not only house products, but also perform other fulfillment services like sorting, bundling, labeling, and shipping helps players deliver products in a shorter turnaround time and win customers’ confidence.
Thus, fulfillment centers remain a preferred choice for e-commerce companies that require efficient partners for their fulfillment operations. The ongoing COVID-19 pandemic has taken a severe toll on businesses across every sector, curbing profits and drying up cash flows and financial reserves. Electronic commerce companies and fulfillment centers are no exception to this as the industry suffered a minor setback during the pandemic initially due to supply chain disruptions and labor shortages. Thereafter, with consumers shunning in-store purchases and preferring to shop online, the surge in online orders did put an unprecedented strain on the logistics and transportation services of online merchants and distributors.
The shippers are still facing uncertainty in the movement of goods owing to the mandated lockdown in certain countries. On the contrary, the pandemic opened a new long-term growth avenue for e-commerce and service contentment companies. To better fulfill the growing number of online sale orders, e-commerce companies increasingly prefer outsourcing fulfillment services to providers that are increasingly focusing on improving their internal operational efficiency and a strong distribution network.
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Market Share Insights
February 2019: United Parcel Service of America, Inc. launched a new e-fulfillment platform. This new platform connects the company’s fulfillment service centers to small- and medium-sized businesses on 21 online marketplaces, including Amazon, eBay and Etsy.
Key Companies profiled:
Some prominent players in the global E-commerce Fulfillment Services market include
- Amazon, Inc.
- eFulfillment Service, Inc.
- Ingram Micro, Inc.
- Rakuten Super Logistics
- Red Stag Fulfillment
- ShipBob, Inc.
- Shipfusion Inc.
- Xpert Fulfillment
- Sprocket Express
- FedEx
- United Parcel Service of America, Inc
Order a free sample PDF of the E-commerce Fulfillment Services Market Intelligence Study, published by Grand View Research.
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