Logistics for e-commerce is growing at the rate of 20 percent per year

OEX E-Business
11 October 2017

By 2024 the global market of logistics for e-commerce will grow to over USD 800 billion[1]. Currently, transport services form the largest part of the industry. However, the fastest growing segment are e-fulfillment solutions.

According to PMR estimates,[1] in 2020, online sales may already account for 10 percent of entire retail trade. In Europe, the largest online sales markets are Great Britain, France, Germany and Russia. Poland is among the countries with the highest growth dynamics.

Logistics is becoming more and more important

The market of services dedicated to the e-commerce sector grows along with the development of
e-commerce itself. One of such areas is logistics, which has undergone a major transformation over the last few years. Only a few years ago, e-stores did not attach much importance to this area. Today, most online sellers are aware of the growing influence of logistics on the purchasing process.

Solutions for e-commerce are offered today by the largest players in the logistics industry as their flagship services. At the same time, in the market, there are entities that specialize exclusively in servicing e-stores.

E-commerce logistics has to respond to the expectations of an increasingly demanding e-store client, which is why care for the customer experience is so important to the whole process. The key thing is
a low cost and short delivery time, a wide range of delivery options, efficient organization of product returns or even aesthetics of packaging. Solutions such as free delivery and return, click & collect or same day delivery are more and more often treated by buyers as a standard
– says Artur Wojtaszek, President of the Board of OEX E-Business.

How is it done by the best?

The development of logistic services for e-commerce is supported by technology that enables increasing automation of the processes of storage, picking and shipments delivery. Robots, drones and other technologies are used on a large scale in Amazon or Wal-Mart operational centers and replace people’s work. This translates into a very measurable optimization of logistics processes that allow e-stores to build competitive advantages and attract customers more effectively.

E-stores can benefit from the best logistics practices without having to invest in the purchase of innovative technologies. Outsourcing is the solution that enables it. In this model, e-commerce companies gain access to the tools previously reserved for the industry’s largest players. Thus, they can offer their clients a service standard comparable to the best companies on the market.

All biggest giants of e-commerce, as well as smaller online sellers use outsourcing of logistics. The former want to focus on development of sales, and outsource other processes. The latter want to use the best logistics solutions that so far were out of their reach – adds Artur Wojtaszek.

The outsourcing model offers also a comprehensive e-store support – from the creation of a sales platform, through marketing activities, logistics, to multi-channel customer service.

Cross border potential

The growing popularity of e-commerce also favors the development of cross-border trade. According to Forrester study, as much as 84 percent of internet users in the world have made purchases at
a foreign e-store at least once, in Poland this percentage is 45%. The long delivery time, its high cost or difficulties in returning the products is what discourages us the most. However, the domestic market has a large growth potential. According to Pay Pal and Ipsos surveys, domestic cross-border trade will grow by almost 24% by the end of 2017, compared to the previous year.

Polish people are more and more open to shop in foreign e-stores, in particular those offering free shipping and return. On the other hand, only a small part of Polish e-businesses is prepared for foreign expansion – says Artur Wojtaszek.

Outsourcing solutions for e-commerce make it easier for such entities to enter foreign markets. Through external companies, e-stores can offer customers from other countries an attractive delivery price, an efficient return process or support in local language.

Further growth of the market of the logistics services for e-commerce will stimulate both the dynamic development of online sales and the need to adapt e-store customer service standards to the growing market requirements. Companies that will use solutions allowing to optimize costs on the one hand and ensure maximum convenience for buyers on the other will be able to measure up to competition.

[1] “Handel internetowy w Polsce 2015. Analiza i prognoza rozwoju rynku e-commerce na lata 2015-2020”, PMR Research

[1] E-commerce Logistics Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 – 2024, Transparency Market Research (TMR)

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Małgorzata Fischer
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