E-Commerce Logistics Market Top Key Players - Aramex International LLC, C.H. Robinson Worldwide Inc., CEVA Logistics AG, Deutsche Post DHL Group, FedEx Corp., Gati Ltd., Kerry Logistics Network Ltd.
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E-commerce logistics industry can be segmented as follows:
Business to Business (B2B): e-commerce players connecting businesses is the B2B segment, there are a lot of players venturing into this segment for example players like Ninjakart in India who exclusively serve the retail stores by connecting them with farmers and manufacturers. This follows hip from store-to-store fulfillment model.
Marketplace: most of the e-commerce operate in this segment connecting the retails and manufacturers to the customers, in this segment logistics players use Distribution centers for fulfillment and the inventory risk is assumed by the retail player. This follows ship from store-to-home fulfillment model.
Inventory Model: In this model e-commerce players hold inventory this gives them a strong control over inventory, they directly serve the customer with the inventory they have.
2. Market they serve
Domestic market: most of the e-commerce markets do operate in this market they connect the vendors and customer in one single nation. This is a popular in countries like US, India and China.
International market: Some companies do connect players in different countries for trade this is either B2B or B2C, Amazon Global is a perfect example of this.
Government owned: For example, in India to facilitate better connectivity and bring more price transparency Indian government has initiated Kisan Rath mobile app facilitates farmers, FPOs and traders across India to search and contact the transport service providers for transporting the Agriculture & Horticulture produce.
2 Private owned: most of the players in the market are private owned like Amazon, e-bay, Alibaba, etc.
RECENT TRENDS IN THE INDUSTRY
1. With the advent of Amazon into the pharmacy retail has given a huge potential to logistics players in both the forward and reverse logistics.
2. Coronavirus pandemic has changed consumer spending patterns many of the larger retails have observed bulkier and less frequent orders, this is one good news for transportation industry which would see a high asset utilization with full truck loads, but this would put pressure warehousing space.
3. FedEx Corp. has agreed to acquire ShopRunner, an e-commerce service that provides shipping for more than 100 brands, as the courier seeks to deepen its ties with online shoppers. This shows the 3PLs are moving fast into the e-commerce market this trend is likely to increase and bring the cost of transportation lower.
4. This is not just in the US but Facebook Inc.’s $5.7 billion investment in a unit of India’s Reliance Industries Ltd. creates an e-commerce leviathan to take on Amazon.com and Walmart Inc. in one of the world’s most competitive internet arenas.
CHALLENGES THAT ARE LIKELY TO BE SEEN IN THE INDUSTRY
1. Increasingly complex last-mile delivery, which can account for 30%-40% of the total cost of transportation.
2. Reverse logistics as e-commerce merchandise is returned up to three times more frequently than products purchased in store.
Aramex International LLC
C.H. Robinson Worldwide Inc.
CEVA Logistics AG
Deutsche Post DHL Group
Kerry Logistics Network Ltd.
Kuehne + Nagel International AG
United Parcel Service Inc.
XPO Logistics Inc.
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