The global e-commerce fulfillment services market size was valued at USD 97.33 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 13.9% from 2023 to 2030. The proliferation of electronic commerce and the resulting rise in the number of online buyers, especially in emerging economies is anticipated to fuel market growth. Fulfillment service centers enable online merchants to outsource services including bundling, warehousing, shipping, and other value-added services, such as return management and urgent parcel service. A fulfillment center is ideal for merchants that do not have robust warehousing capabilities to manage inventory directly and do not want to invest additional efforts in shipping.
In addition, e-commerce fulfillment services can be managed in-house by the online merchant too. Several consumers prefer ordering products online over in-store shopping due to several benefits offered in terms of convenience, cost, variety of choices, and lead time. E-commerce businesses significantly depend upon the warehousing and shipping capabilities to get products transported from manufacturing units/retailers to end-users in a shorter lead time. Traditionally warehousing was highly labor-intensive, however, in recent years, merchants have begun automating operations within the aisles of modern warehouses to minimize human intervention and thereby improve fulfillment productivity and reduce order delivery time.
For instance, Amazon.com, Inc. uses robots in its fulfillment centers to assist associates in performing operations and drive faster shipping times. With the majority of online purchasing sales coming from the urban area, and consumers increasingly demanding product delivery in the shortest possible turnaround time, the location of a fulfillment center is of strategic importance to e-commerce companies. Having centers near major cities that not only house products, but also perform other fulfillment services like sorting, bundling, labeling, and shipping helps players deliver products in a shorter turnaround time and win customers’ confidence.
Thus, fulfillment centers remain a preferred choice for e-commerce companies that require efficient partners for their fulfillment operations. The ongoing COVID-19 pandemic has taken a severe toll on businesses across every sector, curbing profits and drying up cash flows and financial reserves. Electronic commerce companies and fulfillment centers are no exception to this as the industry suffered a minor setback during the pandemic initially due to supply chain disruptions and labor shortages. Thereafter, with consumers shunning in-store purchases and preferring to shop online, the surge in online orders did put an unprecedented strain on the logistics and transportation services of online merchants and distributors.
The shippers are still facing uncertainty in the movement of goods owing to the mandated lockdown in certain countries. On the contrary, the pandemic opened a new long-term growth avenue for e-commerce and service contentment companies. To better fulfill the growing number of online sale orders, e-commerce companies increasingly prefer outsourcing fulfillment services to providers that are increasingly focusing on improving their internal operational efficiency and a strong distribution network.
The e-commerce shipping fulfillment service segment led the market and accounted for more than 39.95% of the global revenue in 2022. The trade liberalization policies and cross-border shipment agreements have resulted in increased trade and shipping activities. With the proliferation of the e-commerce industry, e-commerce companies prefer to outsource shipping services to third-party service providers and concentrate on other key business operations. Thus, shipping services account for the largest revenue share in the market.
The warehouse and storage fulfillment service segment also held a considerable revenue share in 2022. The introduction and adoption of automated robots and Augmented Reality (AR) technology in warehouses is significantly improving the operational efficiency and consequently contributing towards segmental growth as players in the online sales market worldwide continue to outsource these services in a bid to reduce the delivery time.
The business-to-business segment dominated the overall market and accounted for a share of more than 60% of the global revenue in 2022. B2B order fulfillment services are involved with the delivery of goods from one business to another business. In other words, they deliver large, bulk shipments to a destination company. These services enable businesses to pre-store materials needed to carry out day-to-day operations. Furthermore, B2B fulfillment services are critical to a company's ability to meet orders on time.
The business to customer segment is anticipated to register the fastest CAGR over the forecast period. The B2C fulfillment services consist of packing and picking the items for smaller, one-time purchases or subscriptions that are delivered on a recurring basis. Additionally, B2C fulfillment services offer greater order accuracy to the customer owing to fewer items per order which are shipped and directly delivered to the customers.
The consumer electronics segment is expected to emerge as the fastest-growing segment, registering a CAGR of 16.2% from 2023 to 2030. The growth is attributed to the burgeoning demand for consumer electronics coupled with the need for careful handling of fragile electronics products. Consumer electronics, such as mobile phones, tablets, and televisions, among others often need special care while packaging. Since the majority of consumer electronics are extremely fragile, they are required to be packed carefully to reduce the risk of damage. In addition, the shipping boxes/cartons should also be appropriately sealed to prevent moisture from getting in and defecting the product.
E-commerce fulfillment centers not only manage the specific requirements of packaging but also offer bundling and assembly services. Several electronic products come with accessories, such as controllers, extra cables, headphones, and speakers, that consumers wish to order together as a kit. The center procures separate products and bundles them for selling as a complete set. To focus on their core business operations, e-commerce companies outsource their storage, processing, and shipping requirements to third-party service providers. In addition, the clothing and footwear segment held the largest share in 2022. Among all the product categories available on e-commerce platforms, sales from the clothing and footwear segment were the highest in 2022.
The large enterprises segment dominated the overall market and accounted for a share of more than 53% of the global revenue. According to Organization for Economic Co-operation and Development (OECD), large enterprises comprise at least 250 employees. Large enterprises widely utilize e-commerce fulfillment services due to larger business volumes and higher-paying capabilities. Furthermore, these services offer large enterprises several benefits, such as increased revenue generation, lower investment in warehouse infrastructure, and reduction in shipping costs, among others.
The small and medium enterprises segment is projected to exhibit a robust CAGR from 2023 to 2030. Small enterprises comprise up to 50 employees, and medium-sized enterprises comprise 50-249 employees. E-commerce fulfillment services are valuable since they free small businesses of additional labor and obligation. Furthermore, such services serve as a go-between, managing all elements of shipping and logistics.
The Asia Pacific dominated the market and accounted for over 26% of the global revenue share in 2022. The region is anticipated to continue its dominance over the forecast period on the back of increasing internet penetration and growth prospects offered by relatively untapped markets in the region (rural areas and second-tier cities). In addition, countries, such as China, Japan, and South Korea, are among the top 10 exporters of merchandise and account for a large portion of global online sales. Thus, the strong growth prospect of the e-commerce industry in the region is the major factor supporting the regional market growth.
North America is also projected to exhibit a strong CAGR from 2023 to 2030. The growth is characterized primarily by the presence of key market participants in the region, such as Red Stag Fulfillment, Shipfusion Inc., and Amazon.com, Inc., among others. Greater adoption of automation technologies for efficient management of fulfillment services has won the trust of e-commerce companies in the region, leading to market growth. Moreover, after China, the U.S. has emerged as the second-largest market for online sales globally, driving the demand for fulfillment services.
Service portfolio extension remains the premier strategy adopted by the fulfillment service providers. For instance, in February 2019, United Parcel Service of America, Inc. launched a new e-fulfillment platform. This new platform connects the company’s fulfillment service centers to small- and medium-sized businesses on 21 online marketplaces, including Amazon.com, Inc.; eBay Inc.; and Etsy, Inc.
The platform enables businesses to handle their orders and inventory easily across several marketplaces from a single location. Consumers worldwide are becoming more demanding of service aspects, especially regarding the lead time and shipping cost. To cater to the growing consumer expectations, the fulfillment services providers are increasingly focusing on shortening the delivery cycle along with providing services, such as click-and-collect services, to avoid delivery charges and ensure easy return and exchange. Some prominent players in the e-commerce fulfillment services market include:
eFulfillment Service, Inc.
Ingram Micro, Inc.
Rakuten Super Logistics
Red Stag Fulfillment
United Parcel Service of America, Inc.
Market size value in 2023
USD 109.56 billion
Revenue forecast in 2030
USD 272.14 billion
CAGR of 13.9% from 2023 to 2030
Base year for estimation
2017 - 2021
2023 - 2030
Revenue in USD million/billion and CAGR from 2023 to 2030
Service Type, sales channel, organization size, application, region
Service type, application, region
North America; Europe, Asia Pacific; Latin America; Middle East & Africa
U.S.; Canada; U.K.; Germany; France; Russia; China; India; Japan; Brazil; Mexico
Key companies profiled
Red Stag Fulfillment, Shipfusion Inc.; Amazon.com, Inc.; ShipBob, Inc.; Ingram Micro Services
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global e-commerce fulfillment services market report based on service type, application, sales channel, organization size and region:
Service Type Outlook (Revenue, USD Million, 2017 - 2030)
Warehousing and Storage Fulfillment Services
Bundling Fulfillment Services
Shipping Fulfillment Services
Application Outlook (Revenue, USD Million, 2017 - 2030)
Beauty & Personal Care
Books & Stationery
Clothing & Footwear
Home & Kitchen Application
Sports & Leisure
Sales Channel Outlook (Revenue, USD Million, 2017 - 2030)
Direct to Customer
Business to Customer
Business to Business
Organization Size Outlook (Revenue, USD Million, 2017 - 2030)
Small and Medium Enterprises
Regional Outlook (Revenue, USD Million, 2017 - 2030)
Middle East & Africa
b. The global e-commerce fulfillment services market size was estimated at USD 97.33 billion in 2022 and is expected to reach USD 109.56 billion in 2023.
b. The global e-commerce fulfillment services market is expected to grow at a compound annual growth rate of 13.9% from 2023 to 2030 to reach USD 272.14 billion by 2030.
b. Some key players operating in the e-commerce fulfillment services market include Red Stag Fulfillment, Shipfusion Inc., Amazon.com, Inc., ShipBob, Inc., and Ingram Micro Services, among others.
b. Key factors that are driving the e-commerce fulfillment services market growth include the proliferation of e-commerce and the resulting rise in online buying.
b. The Asia Pacific dominated the e-commerce fulfillment services market with a share of 26.31% in 2022. This is attributable to regional e-commerce services providers with well-established fulfillment centers, strong regional footprints, and increasing internet penetration in second-tier cities & rural areas.
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