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Global E-Commerce Logistics Market | Potential growth, attractive valuation make it is a long-term investment: FedEx, Gati, DHL, Aramex, Kenco Group, XPO Logistics, United Parcel Service, InnJoo, Agility Public Warehousing
Overview:E-commerce can be defined as supporting warehousing, transportation processes, and material acquisition with the use of web-based technologies. In e-commerce, logistics are used to reduce operating costs and increase efficiency in order to build a strong customer relationship and enhance brand reputation. The global e-commerce logistics market is projected to grow at a rapid rate over the next five years due to the continued adoption of new technology for track and route optimization.
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Drivers:
The increase in smartphone and internet penetration and the growing acceptance of online payments are the major driving factors for the growth of the global e-commerce logistics market. For instance, in 2020, there are about 1.6 billion smartphone users in China according to China Telecom Corporation.
Moreover, changing lifestyle and convenience offered by e-commerce such as ordering from the comfort of one’s home, comparing prices and reviews of products, and doorstep delivery of the products is expected to aid in the growth of the market.
Restraints:
Low warehousing space and high inventory costs are hampering the market growth.
Regional Insights:
North America currently dominates the global e-commerce logistics market due to its increased internet penetration and Foreign Direct Investment (FDI) inflows, increased support from key market players, and domestic investment. For instance, U.S.’ FDI inflows in the year 2019 accounted for to US$ 246 billion according to the United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report 2020.
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Asia Pacific is the largest growing market due to several government initiatives. For instance, in 2015, the Indian government launched Digital India, a flagship program in order to make various services available on the internet.
Competitive Section:
The key players in the market are FedEx, Gati, DHL, Aramex, Kenco Group, XPO Logistics, United Parcel Service, InnJoo, and Agility Public Warehousing.
In August 2020, Kenco Logistics launched DaVInci AI, an innovative analytics product for the supply chain.
In September 2020, FedEx Logistics opened Foreign Trade Zone in El Paso, Texas.
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