The global E-commerce Fulfillment Services Market size is anticipated to reach USD 168.72 billion by 2028, growing at a CAGR of 10% from 2021 to 2028, according to a new report by Grand View Research, Inc. The rapid penetration of internet services and the resulting rise in the number of online shoppers is the major factor driving the demand for e-commerce fulfillment services worldwide. The consumer expectations with regards to delivery time, shipping speed, and associated costs are changing rapidly. As per the GVR analysis, the major reason for consumers abandoning online shopping carts is delayed shipping. Therefore, established merchants, such as Amazon.com, Inc., have started delivering orders in the shortest turnaround time, in some cases within an hour across large cities.
This has been possible only because of the strategic location and positioning of fulfillment service centers. The growing demand for shorter delivery periods has augmented the need for micro warehouses with a wide geographical presence to ensure the order reaches the end-user in a short period. Picking and bundling plays a vital role in fulfilling the rapid delivery demand of customers. In addition, automated packaging and labeling solutions used at fulfillment centers help the staff in sorting, locating, sealing, packaging, and labeling products in a relatively lesser time, thereby accelerating the delivery process.
Over the years, e-commerce fulfillment service companies have gained significant momentum, especially with a rise in the number of e-commerce start-ups and fast-growing small- & medium-sized enterprises worldwide. These start-ups do not have an established distribution network and robust logistics or transportation infrastructure, owing to which, they extensively depend on third-party fulfillment service providers. However, service providers including ShipBob, Inc., ShipMonk, Red Stag Fulfillment, and Radial, among others are now providing a full suite of e-commerce fulfillment services including picking, packaging, warehousing, shipping, and reverse logistics like Amazon.com, Inc. Therefore, the advent of new businesses in the e-commerce market space is anticipated to boost the market growth over the forecast period.
Related Press Release@ E-commerce Fulfillment Services Market Report
E-Commerce Fulfillment Services Market Report Highlights
- The market is anticipated to witness substantial growth during the forecast period due to the proliferation of the e-commerce industry, especially in emerging markets leading to an unprecedented rise in the number of online buyers
- The shipping fulfillment service segment accounted for the largest revenue share in 2019 owing to trade liberalization policies resulting in increased imports and exports of cross-border shipments worldwide
- The clothing and footwear application segment accounted for the largest revenue share in 2019 due to the growing acceptance of western culture and evolving fashion needs of the youth
- Asia Pacific dominated the global market and is expected to register the fastest CAGR from 2021 to 2028 due to the growth prospect offered by untapped markets (rural areas and tier 2 cities) in the region