eCommerce Logistics Market 2024: Key Insights
- Market Growth: The global eCommerce logistics market is experiencing robust growth, expected to increase from $400 billion in 2020 to $837 billion by 2026, despite challenges such as the recent pandemic.
- Consumer preferences: Research shows that online shoppers around the world prioritize faster deliveries (48%), convenient shipping (43%), and accurate delivery time information (39%).
- Returns: The UAE is a leader in product returns, with 40% of online orders sent back. European shoppers strongly prefer clear, free and simple return policies. Additionally, the global trend towards using order lockers is growing, although acceptance varies from country to country.
- Impact of the Pandemic: The COVID-19 pandemic has significantly affected e-commerce logistics, resulting in labor shortages, increased customer expectations for faster deliveries, higher order volumes and more complex order fulfillment. This has shifted demand patterns towards services such as last mile delivery and on-demand options, with Sub-Saharan Africa surprisingly leading the market growth in 2020.
Have you ever thought about the journey of the package you enthusiastically open from your favorite online store? What’s behind the carefully planned route, speed and timely (or sometimes not so timely) arrival at your home?
Now multiply that by billions of packages shipped around the world. The vast global eCommerce logistics market manages this complex dance of goods and services. Between 2020 and 2021, the market experienced an increase in revenue of $80 billion and continues to grow.
eCommerce logistics market: growth continues
The global eCommerce logistics market has shown a significant growth trajectory in recent years. Let’s take a closer look:
- According to data compiled by Statista, Transport Intelligence and PortCalls Asia, the market was worth $400 billion in 2020.
- By the following year its value had increased by $80 billion, reaching a value of nearly $480 billion.
- Forecasts for 2023 point to a continuation of this trend, with the market expected to reach nearly $600 billion.
- By 2026, it is expected to increase further to a staggering $837.2 billion.
- The global landscape offers a comprehensive overview of the trajectory of the eCommerce logistics market. However, focusing on specific regions, such as Europe, reveals more nuanced insights.
- FYI: We regularly update our rankings with the latest data from our models, providing valuable insights to help you improve your business. Which stores and companies are leaders in eCommerce? Which categories are they driving bestsellers and high sales? Find out for yourself in our rankings for companies , shops and markets . Stay one step ahead of the market with ECDB.
- European e-commerce logistics market:
a closer look
- The parcel market in Europe, as detailed by data from the European Postal Services Regulatory Group (ERGP), has shown a distinct trajectory over the years.
- The annual turnover in 2015 amounted to 31.29 billion euros. While the overall trend has shifted toward growth, specific downturns have occurred, particularly in 2017 and 2018, when the market experienced reductions in annual revenue. However, the market recovered and in 2021 revenues rose to €62.63 billion.
- Having traced the trajectory of market development both globally and in Europe, we now focus our attention on the consumer-centric dynamics that define the eCommerce landscape.
Speed is the consumer’s top priority
According to the results of a global survey of consumers who shop online at least once a month, published by Wunderman Thompson Commerce:
- Nearly half (48%) believe products should be delivered faster, underlining the importance of speed in the delivery process.
- The cost of delivery is another significant concern, with 43% feeling the price paid for shipping is too high, indicating a desire for more convenient, if not free, delivery options.
- Additionally, 39% of these global shoppers want more accurate information on delivery times, signaling the importance of predictability and transparency in the online shopping experience.
- Delivery speed and costs play a vital role in shaping consumer preferences around the world. However, delving into regional nuances presents different emphases on these factors. For example, consider the distinct preferences emerging from places like Israel versus broader trends.
- In a 2021 survey conducted by Outbrain, approximately 50-53% of respondents from the United States, United Kingdom, Australia and the European Union highlighted the importance of delivery speed in online purchases, with 38-43% saying they underlined the attractiveness of free or discounted offers. shipping. Only a small portion (7-10%) in these regions believe that neither factor influenced their purchasing decisions.
- Online shopping in UAE: 40% is returned
- While the speed and cost of delivery are undoubtedly crucial, another significant aspect of the e-commerce experience is the returns policy. Wunderman Thompson Commerce data reveals the countries where online shoppers are most likely to return their purchases.
- The United Arab Emirates (UAE) tops the list with a significant 40% of online orders returned. Following closely, India has a rate of return of 37%. Thailand is no different, with 34% of online purchases returning. Meanwhile, in Europe, the Netherlands sees 26% of its online orders returned. The United States, a major e-commerce market, has a return rate of 25%.
- A clear returns policy helps a lot
- The phenomenon of product returns is not just about statistics; it is intrinsically linked to buyer sentiments and the policies that govern these returns. European shoppers, in particular, have expressed clear concerns about returns procedures.
2022 survey conducted by DPD and Geopost , the European e-shopper landscape revealed ongoing concerns about online returns policies:
- Overall, 78% of respondents across Europe find tedious returns processes daunting.
- Additionally, 75% didn’t like the idea of covering return costs, and a substantial 88% highlighted the need for clear return policies up front.
- Drilling deeper into specific countries: In France, 90% of citizens are hesitant due to unclear return policies and 85% are discouraged by complex return procedures. About 69% were reluctant, fearing return costs.
- Germany and Spain share this sentiment, with around 75% discouraged by complex returns and more than 70% worried about the potential costs.
- Italy and the UK reflect these concerns, with figures ranging between 75 and 88% on these barriers.
European shoppers: 95% want to return products to a consignment shop or retail store
As we continue to explore the European e-shopper landscape, it is critical to determine consumers’ primary desires regarding the returns process. In another 2022 survey conducted by DPD and Geopost , European online shoppers outlined their returns preferences.
The majority, about 95%, are in favor of allowing returns to be dropped off at package stores or retailer stores. Equally popular was the need for transparent return costs and a clear returns policy, with approvals around 94% and 89% respectively. The ability to collect items from home was also important for many, with an average of 90%.
“Free returns”, however, have attracted varied interest across countries: the UK leads with 76%, followed by France (74%), Germany (71%), Italy (69%) and Spain (66%). %). This suggests that, although most return criteria are almost universally desired, attitudes towards free returns show notable differences among European shoppers.
Another emerging trend in the eCommerce logistics industry is the growing reliance on lockers for order collection. But how widespread is this preference?
Smart lockers: Benelux is not a fan
Based on data from Parcel Monitor, the global use of parcel lockers for picking up online purchases saw significant growth between 2018 and 2020.
In 2018, only 10% of online shoppers chose to collect their orders using parcel lockers. This figure saw a slight increase in 2019, with 12% opting for locker collection. However, 2020 marked a substantial surge, as 39% of online purchases were collected via locker, indicating a rapidly growing preference for this method of order collection among consumers around the world.
The growth in the use of parcel lockers shows a changing dynamic in delivery preferences. However, not everyone agrees with this method. In a 2022 survey conducted by SendCloud and Nielsen, consumers’ willingness to use smart lockers for out-of-home (OOH) deliveries varied significantly by country:
- The Netherlands shows the highest reluctance, with 58% of respondents saying they are not willing to use such services.
- This sentiment is echoed in Belgium (54%) and France (52%).
- In Austria and Germany the figures are slightly lower, with 47% and 46% respectively expressing their reluctance.
- The UK, Spain and the US show greater acceptance, but still have significant portions that resist the idea, with figures of 42%, 40% and 35% respectively.
- Italy is the most open to the concept among the countries surveyed, with only 29% of respondents showing an aversion to using smart lockers for OOH deliveries.
COVID-19: Labor shortages and complexity of e-commerce orders
For better context, let’s take a look at the impact of COVID-19 on the e-commerce logistics market and how the industry has recovered from the difficulties created by the pandemic.
In a survey published by the Swiss company Kardex, several challenges emerged regarding the impact of COVID-19 on order management processes. Top issues included labor shortages (40.2%), growing customer expectations for fast deliveries (35.9%), an increase in e-commerce order volume (35%), and the need to fulfill more orders quickly and conveniently (34.2%).
Other responses highlighted concerns related to order accuracy, physical space constraints, multiple order fulfillment channels, complexity of order management, visibility, return order management, and a global view of orders and fulfillment. ‘inventory. Interestingly, 8.5% of respondents said they were not affected by the challenges listed.
What has the pandemic changed in e-commerce logistics?
While the challenges posed by COVID-19 have been multiple, they have also led to changes in demand patterns in the logistics sector.
According to data collected by DHL, Transport Intelligence and estimates provided by Statista, the group was led by the last mile service of eCommerce, often defined as the final phase of the delivery process from a distribution center or facility to end user, who suffered a demand of 21%. This was followed closely by eCommerce fulfillment, recording 18% demand.
The urgency of online shopping was further underlined by the 16% demand for on-demand/instant delivery e-commerce services. In grocery, last-mile in-store distribution was sought after, with 11% demand, and the traditional grocery distribution center was not far behind, with 10%.
Services such as click and collect from stores, returns or reverse logistics and distribution to high street stores have also seen notable demand.
E-commerce logistics growth: Sub-Saharan Africa leads in 2020
To top it off, we will look at the growth of the e-commerce logistics market in different regions for the year 2020, which reveals a surprising surge in Sub-Saharan Africa.
According to Transport Intelligence , sub-Saharan Africa tops the list with a year-on-year change of 36.3%, making it the fastest growing region in this sector. This impressive growth rate is particularly noteworthy because sub-Saharan Africa is not often the center of conversations in e-commerce circles, despite its obvious potential.
Following closely, South America saw a 34.8% increase, while North America, a significant player in the eCommerce space, saw a 33.9% increase. The Middle East and North Africa were not far behind, recording a growth rate of 30.4%. Europe, another major eCommerce market, saw its logistics market grow by 26.5%. Meanwhile, the Asia-Pacific region, home to some of the largest e-commerce giants, recorded a growth rate of 22%.
