Date : June 30, 2024
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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.

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.

According to the research report," Global E-commerce Logistics Market Outlook, 2029" published by Bonafide Research, the market is anticipated to cross USD 1380 Billion market size by 2029, increasing from USD 672 Billion in 2023. The market is projected to grow with 12.7% CAGR by 2024-29. 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. 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.

The Asia Pacific region is the leading market for global e-commerce logistics, driven by rapid digital transformation, a booming e-commerce sector, and significant investments in supply chain infrastructure. Countries like China, India, and Japan dominate due to their vast consumer base, high internet penetration, and strong demand for fast and efficient logistics solutions. China, in particular, leads the market with giants like Alibaba and JD.com, which have developed sophisticated logistics networks, including same-day and next-day deliveries. Another factor contributing to Asia Pacific's dominance is the rise of cross-border e-commerce. The region benefits from well-established trade routes and strategic government initiatives aimed at enhancing digital commerce. India’s expanding online retail sector, powered by companies like Flipkart and Amazon India, has further strengthened the logistics industry with innovations in last-mile delivery and warehousing solutions. Additionally, the adoption of automation, AI-driven logistics management, and drone deliveries has significantly improved efficiency in the region. The high demand for faster, cost-effective, and sustainable logistics solutions continues to propel Asia Pacific ahead of other regions like North America and Europe. As online shopping continues to grow, Asia Pacific is expected to maintain its leadership in the global e-commerce logistics market.

The global e-commerce logistics market is segmented into warehousing, transportation, and other services like returns and inventory management. Warehousing plays a crucial role, with fulfillment centers strategically located near urban hubs to ensure fast deliveries. Companies like Amazon and Alibaba invest heavily in automated warehouses, optimizing order processing and storage. Transportation is the backbone of logistics, ensuring last-mile, same-day, and cross-border deliveries. Logistics providers use AI and data analytics to optimize routes, reduce costs, and enhance efficiency. Other services, such as inventory management and hassle-free returns, are gaining importance as businesses focus on seamless customer experiences. Advanced tracking, predictive analytics, and reverse logistics solutions are transforming e-commerce logistics globally. E-commerce logistics operates across international and domestic markets, with international logistics focusing on cross-border trade and customs clearance. Asia-Pacific leads in global e-commerce logistics, driven by cross-border shipments from China and India. North America and Europe also have well-established international networks. Meanwhile, domestic logistics dominates in markets with high local demand, like the U.S., India, and Brazil, where companies offer express shipping and local fulfillment solutions. The rise of online marketplaces and direct-to-consumer models has further strengthened domestic logistics, with companies investing in local distribution hubs and urban warehousing to meet growing demand.

E-commerce logistics relies on multiple transportation modes, including road, rail, air, and sea. Road transport dominates last-mile delivery, supported by extensive courier networks and gig economy drivers. Rail logistics is essential for bulk shipments and large retailers moving goods between distribution centers. Air freight is crucial for express deliveries and premium services, particularly in cross-border trade. Sea freight remains the most cost-effective option for bulk international shipments, with ports handling large e-commerce cargo volumes. The integration of multiple transportation modes, along with innovations like drone deliveries and AI-driven route optimization, is enhancing the efficiency of global e-commerce logistics. E-commerce logistics serves a diverse range of product categories. Electronics and apparel & accessories are among the largest segments, requiring fast shipping and robust return policies. Home furnishing products and auto parts involve bulkier shipments, demanding specialized logistics solutions. Health, personal care, and beauty products are seeing significant growth, particularly in cross-border e-commerce. Baby products and books require careful handling and efficient delivery networks. Other categories, including niche and luxury goods, further expand the logistics ecosystem. As consumer expectations for fast and reliable shipping increase, logistics providers continue to innovate with automation, AI-driven inventory management, and last-mile delivery enhancements.
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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.

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