Order Fulfillment Services Market – Trend Analysis and Opportunity Assessment until 2021

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The global order fulfillment services market was valued at around USD 40 billion in 2016 and is expected to surpass USD 52 billion by 2021.

Procurement market intelligence analysts have announced its current market research report on order fulfillment services for the period 2017-2021. This market study discloses the chief drivers and key developing trends that will influence the growth of the order fulfillment services market during the forecast period. Some of the top vendors listed in this industry analysis include DHL, Kuehne + Nagel, DB Schenker, Nippon Express, and C.H. Robinson.

Regarding geographical analysis, the Americas are the largest shareholder in the global market, with a market share of around 40%. The US was the key revenue generating country in this region by accounting for almost 50% of the market in the Americas.

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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “The increasing adoption of subscription delivery model will contribute to the growth of the order fulfillment services market. This subscription model is designed to offer better customer engagement and increase brand loyalty. Various e-commerce sites are adopting this model that includes a subscription fee, which ranges from six months to one year. The subscription period covers quick delivery of products offered and special offers that are exclusively for subscribed customers. For instance, Amazon implemented this strategy and called it Amazon Prime, which guarantees consumers one-day delivery and access to Amazon Prime videos.”

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The new procurement market intelligence report evaluates some of the key drivers and trends responsible for the growth of this market and its sub-segments.

Increasing internationalization of Internet shopping

The advent of internet shopping has become universal, and people are purchasing goods from international retailer giants through the internet from different countries. The popularity of these online websites directly drives the market for order fulfillment services as to process and pack international shipments to foreign countries. The leading e-commerce websites like Amazon and Alibaba have added global delivery model free of cost for shipments above certain values for many countries.

Growth in adoption of multi-channel fulfillment

The changing market dynamics and growing consumer preference for multichannel order fulfillment services will fuel the growth in the market during the forecast period. This change in preference is encouraging vendors to use various modes of distribution channels to promote their business. For instance, brick and mortar retail giants are fulfilling orders through stores sales, home delivery for store purchases, online orders, orders through the telephone, and order through mobile applications.

Growing investments in emerging economies

The increasing investments in the manufacturing, e-commerce, and pharmaceutical sectors from emerging countries like India, Brazil, Indonesia, and Russia will help in the development of the global order fulfillment services market. These developments will drive the market and encourage the sellers to introduce new service offerings to increase their revenues. It was estimated by the market researchers that the Indian e-commerce industry had invested more than USD 3 billion over the past two years.

A more thorough analysis is presented in the procurement market intelligence report named, ‘Global Order Fulfillment Services Market – Procurement Market Intelligence Report 2017-2021.’