E-commerce Fulfillment Services Market Size, Share & Trends Report

E-commerce Fulfillment Services Market Size, Share & Trends Analysis Report By Service Type (Bundling, Shipping), By Application (Consumer Electronics, Clothing & Footwear), By Sales Channel, By Organization Size, And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-4-68039-082-8
  • Number of Pages: 100
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2021
  • Industry: Technology

Research Methodology

A three-pronged approach was followed for deducing the e-commerce fulfillment services market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for e-commerce fulfillment services market to gather the most reliable and current information possible.

  • We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
  • We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
  • We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
  • We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
  • We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of e-commerce fulfillment services market data depending on the type of information we’re trying to uncover in our research.

  • Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

  • Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

  • Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

  • Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

  • Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

  • Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

  • This step also entails the finalization of the report scope and data representation pattern.

  • Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

E-commerce Fulfillment Services Market Categorization:

The e-commerce fulfillment services market was categorized into four segments, namely service type (Warehousing and Storage Fulfillment Services, Bundling Fulfillment Services, Shipping Fulfillment Services), application (Automotive, Beauty & Personal  Care, Books & Stationery, Consumer Electronics, Healthcare, Clothing & Footwear, Home & Kitchen Application, Sports & Leisure), sales channel (Direct to Customer, Business to Customer, Business to Business), organization size (Small and Medium Enterprises, Large Enterprises), and regions (North America, Europe, Asia Pacific, Latin America, Middle East & Africa).

Segment Market Methodology:

The e-commerce fulfillment services market was segmented into service type, application, sales channel, organization sizeand regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

  • Demand estimation of each product across countries/regions summed up to from the total market.

  • Variable analysis for demand forecast.

  • Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

  • Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

  • Used extensively for new product forecasting or analyzing penetration levels.

  • Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

  • Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

  • This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The e-commerce fulfillment services market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into eleven countries, namely, the U.S.; Canada; the UK.; Germany; France; Russia; China; India; Japan; Brazil; and Mexico.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

E-commerce fulfillment services market companies & financials:

The e-commerce fulfillment services market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

  • Amazon.com, Inc.: Amazon offers a wide range of products and services through websites, mobile applications, and physical stores. The company also offers electronic devices, including Fire tablets, Kindle e-readers, ECHO devices, and Fire TVs, among others. Services offered by the company include publishing, digital content subscriptions, and advertising. Amazon.com, Inc. operates through three operating segments, namely North America, International, and Amazon Web Services (AWS). The company offers e-commerce fulfillment services through the Fulfillment By Amazon (FBA) fulfillment center. Amazon.com, Inc. is listed on the NASDAQ Stock Exchange under the ticker symbol: AMZN. The company’s geographical presence spans North America, Europe, and Asia.

  • eFulfillment Service: The company provides inventory storage and eCommerce fulfillment services to various small-to-medium-sized retailers and sellers, including startups. The company offers web-based software that can potentially help sellers effectively and efficiently manage inventories, check shipments and orders, and request additional support and services. eFulfillment Service operates over 741 e-tailers, out of which, 40% are based outside of the U.S. The company mainly handles small parcel shipments with no minimum order volume limits or extra costs. Each operation, including customer support, is managed in-house. eFulfillment Service also provides its customers with a 30-day Test Drive Program. The program envisages allowing customers to experience the operations of eFulfillment Service's receiving process by sending the company a part of their inventory. The company has integrated the shopping cart with a web-based system so that customers can enjoy complete visibility over the orders and inventory. Besides, eFulfillment Service’s geographic footprint spans across the U.S., Canada, the U.K., and Australia.

  • FedEx: The company offers a vast portfolio of e-commerce, transportation, and business services. The company’s operations and activities are categorized under four reportable business segments, namely FedEx Freight, FedEx Express, FedEx Services, and FedEx Ground. The FedEx Express segment provides delivery and freight services across over 220 countries and territories. The FedEx Ground segment provides residential and business package delivery services supported by a money-back guarantee. The FedEx Freight segment provides LTL freight services. The FedEx Services segment provides various services, including sales, marketing, IT, communication, technical support, customer service, and billing & collection.

  • Rakuten Super Logistics: The company is engaged in e-commerce freight brokerage and order fulfillment. The company operates through three business segments, namely Internet Services, Fintech, and Mobile. Rakuten Super Logistics’ Internet segment offers domestic and international e-commerce solutions, investment solutions, professional sports, and e-book services. The Fintech segment offers banking solutions, life insurance & general insurance, and card & payment solutions. The Mobile segment offers mobile & communication services and energy solutions. Rakuten Super Logistics’ wide network of fulfillment centers helps sellers and retailers in saving on shipping time and cost while improving order efficiency and customer satisfaction levels. The company’s cloud-based fulfillment platform and state-of-the-art technology support integration with key e-commerce platforms, including Walmart, eBay, Shopify, Magento, Marketplace, and Amazon.

  • Red Stag Fulfillment: The company is a cloud-based 3PL fulfillment provider. The company offers consistent pick, pack, and ship services with secure inventory management to B2B and B2C e-retailers. Red Stag Fulfillment’s service portfolio includes e-commerce fulfillment, order fulfillment, 3PL services, warehouse solutions, and pick-and-pack fulfillment services. The company also provides a custom dashboard that facilitates easy integration with major eCommerce platforms and ERP systems, such as Amazon, eBay, Magento, ReadyShipper, sears, Shopify, ULTRACART, Bigcommerce, and CommerceHub, among others. The company has fulfillment centers at strategic locations, such as Los Angeles, CA; Salt Lake City, UT; Harrisburg, PA; and Knoxville, TN.

  • ShipBob, Inc.: ShipBob is a tech-based 3PL logistics solution provider that offers domestic and international fulfillment services. The company’s exclusive technology integrates warehouse management, predictive data analytics for inventory and order management, and optimized shipment for e-commerce companies. The company also provides a SaaS-based logistics platform to simplify e-commerce business. ShipBob, Inc.’s service portfolio includes custom packaging, warehousing, and package delivery. Additionally, the company offers software for inventory management, combining orders, customer communication, predictive data, and insights, enabling customers to better forecast trends and shopping habits across various industries. Besides, the company’s geographic presence spans across Europe, U.S., and Canada.

  • Shipfusion Inc.: The company is a technology-based e-commerce fulfillment solution provider offering various shipping and warehouse management solutions to assist e-commerce retailers in managing, storing, and tracking inventory. Shipfusion Inc. offers retailers fulfillment solutions backed by software that helps them streamline freight, insurance, and return management processes. Retailers can use the real-time system dashboard to monitor and manage shipments, key milestones, shipping summaries, inventory levels, and fee breakdowns. Shipfusion Inc.’s cloud-based fulfillment platform supports integration with key e-commerce platforms such as BigCommerce, Walmart, Shopify, Magento, WooCommerce, and Amazon. The company has fulfillment centers at multiple locations such as Los Angeles, Toronto, Chicago, and New York. Additionally, the company plans to open three new warehouses in New Jersey, Dallas, and Atlanta.

  • Sprocket Express Plainville, MA: The compay provides e-commerce, order processing, and fulfillment services to web-based e-commerce companies. The company also offers various other services such as inventory management, fulfillment, shipping and receiving, warehousing, market integration, and customer support services, thereby providing businesses with comprehensive e-commerce solutions and technologies. Sprocket Express Plainville, MA has various shipping partners such as DHL eCommerce, United Parcel Service of America, Inc., FedEx, USPS, and OSM Worldwide that help the company in delivering shipments within 1-4 days of the transit time.

  • Xpert Fulfillment: The company provides logistics solutions and order fulfillment services. Moreover, it operates distribution centers to manage all aspects of order and inventory management for existing e-commerce companies. The company also offers print and web design solutions, marketing advice, direct sales, and global distribution channels along with product fulfillment and inventory management. For order shipment, the company uses advanced technologies such as barcode and RFID scanning to ensure accurate delivery of products. Xpert Fulfillment caters to various segments including consumer goods, electronics, cosmetics & nutraceuticals, games & toys, books, apparel, and mobile accessories, among others. The company has a centrally located fulfillment center that ships orders across Canada and the U.S. Moreover, the company has partnered with various European Union-based suppliers to expand its international services.

Value chain-based sizing & forecasting

Supply Side Estimates

  • Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

  • Segment revenue determination via variable analysis and penetration modeling.

  • Competitive benchmarking to identify market leaders and their collective revenue shares.

  • Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

  • Identifying parent markets and ancillary markets

  • Segment penetration analysis to obtain pertinent

  • revenue/volume

  • Heuristic forecasting with the help of subject matter experts

  • Forecasting via variable analysis

E-commerce Fulfillment Services Market Report Objectives:

  • Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

  • Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

  • Understanding market estimates and forecasts (with the base year as 2022, historic information from 2017 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

E-commerce Fulfillment Services Market Report Assumptions:

  • The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

  • The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

  • We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

  • All market estimates and forecasts have been validated through primary interviews with the key industry participants.

  • Inflation has not been accounted for to estimate and forecast the market.

  • Numbers may not add up due to rounding off.

  • Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

  • Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

  • Latin America includes Central American countries and the South American continent

  • Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

  • Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

  • Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.

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