Offering a wide range of opportunities and managing various multi-channel operations including cross-border tasks, plan & inventory, planning, estimating and performance management, the e-commerce logistics industry is anticipated to gain higher momentum

E-commerce logistics refers to the processes of storing and shipping inventory for an online store or marketplace. E-commerce logistics begins with movement of goods from the manufacturer and lasts until it arrives at the end of customer’s destination. It is a congregation of various processes such as warehousing, transportation, inventory management, packaging, labeling, billing, shipping, payment collection, return, and exchange that work in synchronization leading to a supply chain. The e-commerce logistics market is growing in parallel with e-commerce sales in different regions and there are various factors which are likely to drive the market in future are, the infrastructure improvements, improved awareness, tech-enabled logistics platforms, and appealing online shopping offers have all contributed to the growth of both the e-commerce as well as the logistics sectors.

As customers progressively expect same-day delivery of goods dispatched to their place, a massive surge in e-commerce and e-commerce logistics has disrupted the global supply chain and transformed industrial transportation networks. While much of the attention has focused on the “last mile”- the final and crucial step in delivery from the distribution center or warehouse facility to the end user today, all freightage modes are being contemplated to reduce costs and connect this growing network of provisions. The four most efficient means to transfer e-commerce goods from one place to another by cost are roads, rail, air and sea. Based on transportation mode, the market is segmented into four-transportation mode. The road segment is leading the market with more than 50% of value market share. Intermodal transportation, which is an amalgamation of two or more different shipping modes from one region to another region such as trucks, trains, ships, and aircraft to move freight to a final destination could prove to be the most efficient and thrifty solution in e-commerce logistics. Rather than relying on a single mode of transport, different firms across the globe are using an intermodal combination of road, sea, air and railways to move goods on longer routes requiring fewer transfers. This provides significant cost savings for shippers, buyers, and other stakeholders in the e-commerce logistics supply chain, where distribution is one of the biggest costs.

According to the report titled, “Global E-Commerce Logistics Market Outlook, 2027”, published by Bonafide research, the market is anticipated to reach around USD 989 Billion during the forecast period, registering CAGR of 13.44% for 2022-2027. The explosion of digital technology has led to an increase in the presentation and impact of e-commerce logistics across a wide range of applications across the globe. In addition to that, the growing e-commerce market will be driven by cross-border transactions, as well as the increasing penetration of the internet, specifically in developing economies which has contributed prominently to the market growth. Based on the growing awareness, the mounting demand for E-commerce start-ups, door-to-door delivery services in addition to their quick deliverability will add to the market growth of the E-commerce logistics market in the upcoming timeframe.

Compared to other regions, e-commerce grew most quickly in North America, particularly in the USA, due to the increasing number of Internet-savvy shoppers as well as the world's largest base of technical experts, who not only were available to work on e-commerce projects, but also, in many cases, they have launched their own firms. Also, fuelling the North American e-commerce boom was the unparalleled level of funding available from a variety of sources. Various e-commerce companies have significant opportunities to explore the e-commerce logistics market due to the high internet and smartphone penetration in the North American region. In 2021, North America had approximately 417 million internet users. 90% of adults in North America use the internet, either irregularly or frequently. In line with the overall growth of the smartphone market worldwide, the smartphone penetration rate in the United States has continuously risen over the past several years, reaching 85 percent in February 2021. In 2020, the number of smartphone users in the United States is estimated to reach nearly 294 million. Also, higher technological advancements and the development of infrastructure in major economies such as the US and Canada, with wide connectivity through roadways and railways, are expected to propel the higher market growth. For instance, the railways of the US and Canada form one of the major railway networks.

In Europe, the e-commerce market has grown rapidly in the last few years. Also, Europe is home to several major e-commerce logistics companies that operate in many countries. These players are very interesting for online retailers that sell cross-border. Europeans shop mostly within their own region. 88% of online purchases made by Europeans were mainly from national sellers. In a ranking of top e-commerce retailers in Europe, most of the retailers originated from Germany, France, and the UK. Europe is considered to have the potential to obtain higher growth in terms of revenue share during the upcoming timeframe. By 2021, the proportion of EU households with internet access had risen to 92%, up from 72% in 2011.Based on the obtained data, overall internet penetration in Europe in 2021 was calculated to be nearly 87%. In addition to that, smartphones make up the primary component of the European mobile phone market, with a 78% smartphone penetration rate in Europe in the same year. As of April 2021, Amazon appeared as the leading online marketplace in Europe, registering approximately 981 million monthly visits. With almost 367 million visits, eBay ranked second most popular, with almost 367 million visits, followed in third place by the Polish e-commerce site Allegro, which attracted close to 185 million visits. The UK is an island nation separated physically and politically from mainland Europe by the twin barriers of the Channel and Brexit. The UK is nonetheless the continent’s e-commerce leader. Its consumers are educated shoppers, with high potential for quality and service from both domestic and international retailers, and its online sales revenue outranks the combined scale of its two closest continental rivals, Germany and France.

Asia-Pacific e-commerce logistics market has been growing at a rapid pace, owing to rising e-commerce market and market players including new entrants, low-cost workforce, increasing smartphone and internet penetration, and evolving cross-border e-commerce market. In 2021, the internet penetration rate in Asia-Pacific was just over 64%, which was more than double the internet penetration rate in 2010. The number of online users in the Asia-Pacific region exploded in 2021, reaching over 2.5 Billion. Half of these users were from China and India. However, at the end of 2020, 1.2 billion people across Asia Pacific were calculated to be connected to the mobile internet, equivalent to a 42% penetration rate. Further, increasing business to business (B2B) and business to consumer (B2C) sales across the Asia-Pacific region are expected to create higher demands for essential logistics service. . In emerging markets such as India, China and Indonesia, the trend of cross-border e-commerce market is increasing. Asia-Pacific is expected to generate around 40% significant market growth of the global cross-border revenue. These countries have also recorded an increase in foreign goods consumption and are driving demand in the market.

From 2020, the COVID-19 outbreak has encouraged growth in the digital industry across the world, with e-commerce being at the centre. As for the South American region, this growth is measured in exponential amounts. The increasing growth of internet shopping throughout South America, with some emerging countries reporting significant increases in online purchases, is one of the primary drivers of the market. The massive demand for home deliveries for food and beverages in the South American region has already been gaining greater popularity in recent years. Also, due to the COVID-19 pandemic, the digitalization of shopping has boosted the demand for e-commerce, which will in turn propel the demand for essential logistic services. From the obtained data, it has been found that eight out of ten South Americans have continued shopping online after the pandemic. The South American e-commerce boom is expected to be permanent based on the research. Also, last-mile delivery solutions are becoming more adaptable across the region. As has happened everywhere in the world, shopping and buying habits in South America have been intensely affected by the still ongoing COVID-19 Outbreak. Once a laggard in e-commerce, it is now the fastest-growing regional e-commerce market in the world. South America is home to about 625 million people, about 1 in 10 of the world's population, which has attracted the attention of e-commerce marketers from all over the world.

Internet penetration in the Middle East and Africa was estimated to be nearly 67% in 2019. In the same year, nearly 183212 million internet users were recorded in the Middle East & Africa region. On the other hand, in 2021, smart-phone penetration was calculated to be around 75%. During the past decade, globalisation and technology have created new openings for internationalization, boosting supply chains and competitiveness across the region. The region has been relatively slow to adopt e-commerce, but the COVID-19 pandemic has brought a step change in behaviour. Consumers across the Gulf Cooperation Council, South Africa, and Turkey have done a lot more shopping online during the pandemic than before, amid higher demand for groceries, personal care, and household supplies. In fact, consumers in Saudi Arabia and the UAE have seen among the highest rates of new or increased users of online deliveries and communications. While many of the region’s imports have historically come from China, growing numbers of shoppers are buying from further afield. Across the Middle East, Amazon and eBay are used just as frequently as local sites such as Cobone, Souq, and Sukar.

Downturns in global economies, including as a result of the COVID-19 pandemic, positively impact the e-commerce and e-commerce logistics industry and various company’s business. Despite persistent cross-country differences, the COVID-19 crisis has enhanced dynamism in the e-commerce logistics landscape across countries and has expanded the scope of e-commerce and e-commerce logistics, including through new firms, consumer segments and products. The pandemic situation has caused an increase in last-mile deliveries that are likely to persist. However, this pandemic situation has elevated the growth of the e-commerce and e-commerce logistics market, and is expected to exhibit twofold increase during the forecast period.