E-Commerce will Continue to Offer a Solid Growth Platform for Online RetailersAugust 24, 2023
If things are taken into view from a global perspective,E-Commerce will Continue to Offer a Solid Growth Platform for Online Retailers Articles the industry has scaled new heights. The global e-commerce logistics market is hyped to earn close to $535,895 million by the year 2022. According to expert analysts at Allied Market Research, this would be achievable with a projected CAGR of 21.2% from the period between 2016 till 2022.
A closer look at the success stories of companies, such as Amazon and Flipkart reveals the competitive advantages reaped by these giants by employing their own logistic solutions for product delivery. They have proved that the exponential progress of the e-commerce logistics market is directly incidental to the expansion of e-commerce operations.
Apart from this, the surge in the number of third-party logistics (3PL) companies that have emerged have boosted the overall growth of the industry. Millennials now have excess of disposable income and have been quick to become regular customers for various e-commerce companies. This has added an extra dimension to the global market and potentially changed the way products are bought and delivered in the modern-day world.
Immense market potential recognized by ecommerce giants
The e-commerce logistics market offers several untapped potentials for likely investors and entrants in the industry. Market players are have begun to identify the attractive propositions that might turn into fruitful ventures in the e-commerce logistics market. While North America and Europe already have a strong industry, it is the Asia-Pacific and Latin American & Middle East (LAMEA) regions that are swiftly luring the players in.
The intensification in the number of netizens, have warmed up to the idea of ordering products through e-commerce platforms, has generated several opportunities for industry giants and new entrants to establish their foothold. India and China are especially attractive markets, in terms of customer base and revenues to be earned.
Companies, such as Amazon, eBay, Flipkart, Alibaba, and PayTM have expanded their projects in Asia and are owning their own logistics operations. This has also given them the added leverage over other small e-commerce enterprises. Even Paytm has partnered with Flipkart’s eKart for logistics support. It has also become usual to see online retailers cooperating with domestic and international delivery providers, such as Blue Dart, DTDC, and GoJavas. Giants including Amazon and Flipkart prefer to employ their own logistics solutions, rather than availing services from external logistic providers, to have better control over deliveries.
Robots to do your logistics the smart way
A game-changer technology that is being employed in e-commerce logistics is the use of robotics to provide an effective solution to all problems. Artificial intelligence has progressed beautifully and the smart next-generation robots in warehouses and delivery operations is a clear testimony to that. This has also ensured a swift automation of processes and ushered in an entire revolution in retail.
Retailers and e-commerce business are constantly on the watch to devise solutions for a reduction in operations and logistics costs along with a decline in delivery time. The implementation of robots offers a rewarding, money-saving alternative to kch-hannover.de human labor, as they assure superior performance with excellent precision. This has encouraged several business enterprises to join forces with robot-makers and enhance their logistic efficiencies.
For example, GreyOrange, a prominent name in the advanced robotic systems landscape, has recently entered into a contract with Nitori Holdings Group. The agreement with Japan’s largest home furnishing chain intends to supply robotic solutions for its warehousing and transportation. Nitori Holdings has a logistics subsidiary called Home Logistics, which is where the robotics systems will be deployed at 34 distribution bases. The Butler robots, provided by GreyOrange are prepared with software that adjusts real-time to moving inventory profiles and order fulfillment patterns. By methodical deployment of the Butler robots, the system will result in high productivity and accuracy, thus saving time and costs.
The e-commerce logistics industry is set to witness a generous growth in the next few years. With several favorable market conditions that have amplified e-commerce businesses and the emergence of online portals, the logistics industry is bound to gain from such an exponential growth.