E-commerce Fulfillment Services Market Net Worth US$ 70 billion in 2020 and Forecasts to 2027

Picking and bundling are critical in meeting customer demand for quick delivery. Furthermore, automated packaging and labelling systems used in fulfilment centers assist workers in sorting, locating, sealing, packaging, and labelling products in a shorter amount of time, allowing the delivery process to be accelerated. E-commerce fulfilment service providers have grown in popularity over the years, owing to an increase in the number of e-commerce start-ups and fast-growing small- and medium-sized businesses around the world. Because many start-ups lack a well-established distribution network as well as a comprehensive logistics or transportation infrastructure, they rely heavily on third-party fulfilment service providers.

Major Drivers, Restraints, Challenges and Opportunities

The global demand for e-commerce fulfilment services is being driven by the growing adoption of internet services and the associated increase in the number of online customers. Consumer expectations for delivery times, shipping speeds, and associated prices are rapidly shifting. The pandemic provided e-commerce and service fulfilment enterprises with a fresh long-term growth opportunity. Companies prefer outsourcing fulfilment services to suppliers who focus on enhancing their internal operational efficiency and building a robust distribution network to better fulfil the growing number of online sale orders.

Market Segmentation

The shipping fulfilment service category accounted for the biggest revenue share due to trade liberalization policies resulting in increasing imports and exports of cross-border shipments worldwide. Due to the expanding acceptance of western culture and the changing fashion needs of the youth, the apparel and footwear application segment accounted for the biggest revenue share in the e-commerce fulfillment services market.

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Regional Outlook

North America is expected to grow at a rapid pace. The presence of significant market actors in the region is a major factor in the region's growth. The Asia Pacific region led the global e-commerce fulfillment services market and accounted for the majority of revenue. Because of the increased internet penetration and growth prospects presented by relatively untapped markets in the region, the region is expected to maintain its dominance during the projected period.

Competitive Landscape

Consumers throughout the world are growing more demanding in terms of service, particularly in terms of lead time and delivery costs. Providers are increasingly focusing on decreasing the delivery time while also offering services to meet rising consumer expectations.

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Frequently Asked Questions

The apparel and footwear application segment generating a higher revenue shares and is expected to continue its progress in the coming years.

The location of a fulfilment center is critical for e-commerce enterprises because the bulk of e-commerce purchases are made in cities, and consumers are increasingly demanding product delivery in the quickest feasible period.

North America witnessing significant growth and is anticipated continue the same progress during the forecast period.

Red Stag Fulfillment, Xpert Fulfillment, Amazon.com, Inc., FedEx Corp., Shipfusion Inc., and efulfillment Service, Inc. are some of the prominent players in the global market.

The research discusses important market developments as well as organic and inorganic growth strategies.