Global e-commerce logistics market to garner $709bn by 2022,

A new report from Allied Market Research titled, ‘Global E-Commerce Logistics Market – Global Opportunity Analysis and Industry Forecasts, 2014–2022’, projects that the e-commerce market will be worth US$536 billion ($709 billion) by 2022, growing at a CAGR of 21.2 per cent from 2016 to 2022.
The transportation service type generated the largest market share in 2015 while the warehousing sub-segment is expected to register the fastest growth during the forecast period 2016–2022. Asia Pacific is expected to be the largest market.
“Booming e-commerce industry, execution in 3PL, and enhanced relationships between customers and suppliers provide heightened growth avenue for the e-commerce logistics industry,” the market research company said in a press release. “Retailers have revamped their traditional warehouses to cater to the requirements of e-commerce and logistics to improve the store-level inventory accuracy and increase their ability to serve larger consignments.
“Further, supply chain solutions are being customised to serve the user requirements with the transformed fundamentals of product distribution and advancements in technology. Additionally, business analytics has assisted logistics professionals to increase the speed and efficiency of work processes.
“The extended execution of supply chain footprint is highly opportunistic for the market growth. However, factors such as high deployment of warehouse management solutions and regulatory issues restrict the market growth to a considerable extent.”
In 2015, the transportation sub-segment dominated the market, the company observed, however the warehousing service type is expected to witness the fastest growth over the forecast period.
“The integration of e-commerce logistics with transportation management software (TMS) has boosted the e-commerce logistics market growth,” the company said. “TMS aids in planning deliveries across the supply chain. Furthermore, optimizing the flow of goods and leveraging consolidated capacity have increased the growth potential of the market. Further, the domestic operational area leads the global e-commerce logistics market and international operational area portrays the fastest growth rate in the global market.”
Sonia Mutreja, Lead Analyst – E-Commerce & Outsourcing, AMR said, “Asia Pacific is the most productive market for e-commerce logistics as compared to others owing to the increasing population, globalisation, upsurge in the sales of smartphones, and increasing number of netizens. Furthermore, LAMEA is projected to grow at the fastest pace over the forecast period owing to technological advancements and rising internet connectivity in the region.”
Key findings of the study:

  • Domestic operational area generated the highest revenue as compared to international area and is anticipated to maintain its dominance over the forecast period
  • Transportation is expected to exhibit a significant growth in the e-commerce logistics market
  • LAMEA is projected to exhibit a substantial growth during the forecast period
  • The key players in the global e-commerce logistics market include DHL International GmbH, Aramex International, FedEx Corporation, S.F. Express, Gati Limited, Amazon, Kenco Group, Inc., Ceva Holdings LLC, United Parcel Service, Inc., and Clipper Logistics Plc.

Three in four Australians ready for Amazon

Three in four Australian adults are interested in Amazon Australia and 56 per cent are likely to purchase from its Australian site, according to a survey carried out by Nielsen in January 2017.
Almost half (45 per cent) of respondents stated that they would subscribe to Amazon’s Prime service for deals, discounts and fast delivery.
Two thirds of respondents noted that they were likely to use Amazon to purchase electronic goods, while three fifths said they will likely buy books or clothes through the website.
The survey found that Australians have little interest in buying their groceries from Amazon, just nine per cent of respondents said that they would likely buy fresh vegetables through the site and seven per cent said they would use it to purchase fresh meat.
Craig Woolford, Citigroup’s head of research, told the Australian Financial Review (AFR) that Australia represents a very promising prospect for Amazon, and he believes Amazon could capture sales of at least $4 billion within five years of rolling out its services. “Australia’s appeal for Amazon becomes clearer when you adjust retail sales levels for population. Australians spent $12,200 per person on retail goods last year, third only to the US ($15,700 per person) and Japan ($12,300 per person). These are both markets in which Amazon has a local presence,” he said.
JB Hi-Fi, Harvey Norman, specialty retailers such as Super Retail Group and Premier Investments, department stores including Myer, Target, and BIG W and footwear retailers such as RCG have the most to fear from Amazon, according to Citigroup. “Amazon’s impact on (Australian) retailers would be diverse, given the magnitude of its product range. We expect the greatest impact to be felt by electronics retailers given Amazon’s product range and the branded nature of these products,” Woolford recently reported. “We estimate 44 per cent of its product sales would be electronics [and] the next largest category is likely to be physical and electronic media including books.”
“When Amazon comes to Australia, whether it’s this year or not, it will take a year or two to have that knock-on effect,” said James Stewart, Ferrier Hodgson retail partner. He added that he doesn’t expect Amazon to establish a full physical presence in Australia for another two years, given the time requirement to build fulfilment and sorting centres and to build relationships with Australian brands.

Harvey Norman founder on Amazon in Australia: the battle plan

Gerry Harvey, one half of the founding duo behind household goods retailer Harvey Norman, recently spoke out against the rise of Amazon, the fall of small businesses and why he’s confident Harvey Norman will weather the storm.
Speaking to 9news’ Eddy Meyer, Harvey bemoaned the lack of corporate etiquette present in Amazon’s operating practices that have led to its success at the expense of smaller enterprises. “In America, it is regarded as a very poor corporate citizen,” he said. “It sent a lot of other retailers broke that used to employ people. They used to pay taxes. Amazon pays virtually no taxes, and they just put a lot of people out of business.”
On Amazon entering the Australian market, Harvey explained that he is not worried for his business’ survival, even though he doesn’t expect the online e-commerce giant to play fair. “For years they’ve been sending goods into Australia with no GST, and we all pay GST. We have been subsidising Amazon for years, now they’re coming here to try and send us all broke. They’re not going to send Harvey Norman broke, but they’re going to be a pain in the backside.”
Norman stated that key to his company’s continuing success will be the service customers receive in store, same-day home delivery and price matching. “We will be competitive with them come hell or high water,” he said. “We are not going to lie down for Amazon and we will still make good profits and pay taxes, which they won’t.”
Norman has no delusions about the battle ahead, “[These] are fighting words,” he told Meyer. “Amazon’s coming here, they’re fighting me, okay? Make no mistake – I’ve got a gun in my holster too.”

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