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Transport Intelligence reports slowing growth in e-commerce

A NEW report by the UK's Transport Intelligence warns that the global e-commerce logistics market that has undergone tremendous growth, appears to be showing a slowing rate of acceleration

Transport Intelligence reports slowing growth in e-commerce

A NEW report by the UK's Transport Intelligence warns that the global e-commerce logistics market that has undergone tremendous growth, appears to be showing a slowing rate of acceleration

07 March 2019 - 19:00

A NEW report by the UK's Transport Intelligence warns that the global e-commerce logistics market that has undergone tremendous growth, appears to be showing a slowing rate of acceleration. Last year the market increased in size by 18.2 per cent.

The report Global e-commerce Logistics 2019 presents the picture of a market that is still expanding rapidly, albeit one in which competition, challenges and new entrants are raising questions over future development opportunities.



Emerging markets are showing the fastest expansion, but even in developed economies, growth rates in nominal terms are usually in double-digits.



Ti expects the global market to grow at an expected nominal 2018-2023 compound annual growth rate (CAGR) of 11.8 per cent, UK's Transport Intelligence reported.



Ti's latest figures suggest the cross-border component is a significant driver of this uplift. Cross-border e-commerce is bringing supply chain stakeholders into direct contact and challenging the status quo.



The report also examines the trend for offering more omni-channel retail solutions, likely to be a key requirement moving forward. This is largely driven by the purchase behaviour of consumers, who demand a seamless experience enabled by the use of different channels to order, pay, collect and return products.



The study further examines e-fulfilment and last mile cost structures, and provides analysis of structural variations by geography and retail sector.



Ti also spoke extensively with senior management and leaders at the largest e-fulfilment and last mile providers globally, as well as with niche e-commerce logistics providers. A common theme was the threat posed by global retail platforms managing their own logistics requirements while also offering services to third parties.



The entry of players such as Amazon, Alibaba and JD.com is forcing many to consider what the future of e-commerce logistics might look like.


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