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The Booming E-Commerce Logistics Industry: Thanks to Technological Advancements and Digitization

It’s so simple for us to make a purchase online and then enjoy the benefit of getting the orders delivered right at our doorsteps. We hardly ever think of the tasks that go on behind the scene that makes this possible. Thanks to e-commerce logistics which facilitate a reliable and efficient delivery of products to customers in a timely manner. It involves the warehousing, transportation, and shipping of products ordered by customers online.

The e-commerce logistics industry has been witnessing a brisk growth over the years, owing to growing globalization, increasing penetration of the internet and use of smartphones, the rise of cross-border e-commerce activities, execution in 3PL, and enhanced relationships between customers & suppliers. Moreover, extended execution of the supply chain footprint is likely to create new pathways for the growth of the market. As per the report published by Allied Market Research, the e-commerce logistics market is expected to accrue a sum of $535,895 million by 2022, registering a CAGR of 21.2% during the forecast period, 2016 – 2022.

The unmatched growth in e-retail due to growing expectations from customers has put the e-commerce logistics industry under great pressure to deliver better solutions at reduced costs. Players in the space are coming up with their own solutions in order to provide better services for enhanced customer experience. Some are launching new services to simplify logistics while others are involved in acquisitions and partnerships to expand their services. For instance, Carrefour and Google agreed on a partnership on e-commerce to innovate on new distribution models and commerce experiences in France. The Kroger Co. and Ocado Group formed an e-commerce partnership with the aim of enhancing the shopping experience of U.S. customers. BigCommerce recently announced the expansion of its e-commerce platform with the introduction of a novel solution called BigCommerce Shipping. China’s unveiled new delivery stations in two of its cities to strengthen its autonomous logistics capabilities.

Carrefour and Google Sign Strategic Alliance

The alliance between Carrefour, a France-based retailer, and the American technology firm Google is built around three initiatives – availability of Carrefour on a new Google shopping website and Google Assistant in France, inaugurating an innovation lab in Paris, and digitization acceleration of the Carrefour Group through a training program. According to their plans, employees would be given proper training via Google Cloud and its G Suite productivity and collaboration solutions will be deployed to a huge number of employees of Carrefour. The deal allows Google to offer its technology and skills in AI, cloud and new consumer shopping interfaces to Carrefour and Carrefour to deliver its skills and expertise in logistics and sales. According to Alexandre Bompard, CEO of Carrefour, they are thankful to Google for the partnership as it helps them to create a strong bond as well as allowing them to speed up their digital evolution.

Kroger and Ocado Forms Partnership to Provide Customers with Best Shopping Experience

The Kroger Co., an American retail company and Ocado Group, a British online supermarket firm, formed an e-commerce partnership to streamline Kroger’s creation of a seamless shopping experience for customers in the U.S. The alliance offers Kroger a broad range of e-commerce solutions. The Ocado Smart Platform which offers capabilities in online ordering, automated fulfillment, and home delivery comes to the U.S. for the first time. Ocado teamed up with Kroger to accelerate Kroger’s digital and robotics capabilities and to assist in the expansion of its coverage to provide American customers the ease of shopping for anything, anytime, and anywhere.

BigCommerce Expands its E-Commerce Platform

BigCommerce, a privately held e-commerce company came up with a new shipping solution called BigCommerce Shipping in order to streamline shipping and fulfillment for BigCommerce merchants. The solution is powered by fulfillment and logistics experts namely, ShipHawk and Parcelcast, and all the customers of BigCommerce have access to it. Sellers on the platform have access to proper and discounted shipping prices with some prominent carriers of the region such as USPS, FedEx, and DHL Express. It enhances customers’ experience by helping merchants compare rates, print labels, manage orders and reconcile shipping bills from a single panel to streamline shipping operations. Launches Delivery Stations to Enhance Logistics, the e-commerce giant in China, launched two smart delivery stations in Changsha and Hohhot with the aim of enhancing its expertise in autonomous logistics. Currently, R&D, testing, and personnel training are being carried out at the stations to solve certain problems. The company’s delivery robots can handle around 30 parcels before delivering them autonomously within 5 kilometers. They can find routes, avoid obstructions on the way, and identify traffic lights. Another interesting feature of the vehicles is that a facial recognition technology allows users to collect their parcels conveniently and safely. The delivery stations can deliver a maximum of 2,000 packages a day.

Though there are some issues such as regulatory issues, high deployment of warehouse management solutions, and inadequate physical infrastructure that impede the market growth, new trends and developments in the e-commerce logistics space and rising demands from consumers for better service are offering opportunities for growth of the industry.

About the author


Sharmistha Sarkar

Sharmistha Sarkar has always had a keen interest in reading and writing. Though an engineering graduate, she forayed into the field of writing due to her love for words and the urge to do something different. Allied Market Research has given her the chance to gain knowledge about different subjects as a senior content writer.