Global E-Commerce Logistics Market will be Worth Over €500bn by 2024

  • e-commerce logistics market expanded by 16% in 2019
  • Current growth trends will push the market to €500bn by 2024
  • Despite even the largest LSPs being stretched to breaking point, logistics costs percentage remain effectively unchanged at 15% of sales for nearly a decade

New research from Transport Intelligence (Ti) shows an e-commerce market rapidly expanding at 16% in 2019, but also one in which logistics costs are stubbornly high.

Analysis for Global e-commerce logistics 2020 examined logistics costs data from 20+ retailers across geographies and retail sectors. The data shows that logistics costs as a percentage of sales have essentially remained flat at 15% for much of the last decade. This is despite large investments in infrastructure, technology, and automation from LSPs as they seek to boost efficiency and capture more value. Significant variations in logistics costs can be found, however, with the retail sector and location key determinants of overall logistics costs.

Global e-commerce 2020 does show an e-commerce logistics market that continues to expand rapidly, however. The global market expanded by 16% in 2019 as online sales continued to grow in more mature e-commerce markets from the US to South Korea. Even more rapid market development was seen in countries where online retail is only now taking hold – annual growth rates in excess of 30% were recorded in several markets. Looking ahead, the market is expected to top €500bn by 2024.

“e-commerce presents quite a puzzle for logistics service providers. On the one hand, its growth is phenomenal and the potential for value creation is incredibly attractive. On the other, there’s a battle to keep costs down as retailers heap pressure onto their supply chain partners to limit costs while improving service levels at the same time. It would have been hoped that the huge investments in infrastructure, automation, and other technology has seen over the decade last would be reducing costs, but that’s not happened market-wide and costs, especially in fulfillment, have risen dramatically,” said Nick Bailey, Head of Research, at Ti.

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Ryan is the Digital Marketing and Content Creation Manager for Trade and Logistics Siam Ltd. He provides a creative flair to the team and his resourcefulness helps to bring an imaginative improvement to both literary archetypes and online content production. A writer by day and a rider by night, when he's not composing the latest logistics news update or creating compelling copy for our clients, Ryan spends his free time travelling Thailand by motorbike.