E-commerce Fulfillment Services Procurement Intelligence

The e-commerce fulfillment services category is expected to grow at a CAGR of 13.9% from 2023 to 2030.

The increased number of online shoppers, particularly in emerging economies, and the proliferation of the e-commerce industry are driving the industry significantly. In addition, the rise in the number of e-commerce startups and the growth of small & medium-sized businesses across the globe has supported the market players in gaining momentum over the years. In 2022, the global market was dominated by the e-commerce shipping fulfillment service segment as the policies of trade liberalization and the agreements governing cross-border shipments have led to an expansion in trade and shipping.

Order your copy of the E-commerce Fulfillment Services category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

E-commerce Fulfillment Services Procurement Intelligence Report Scope

The E-commerce Fulfillment Services category is expected to have pricing growth outlook of 5% - 10% from 2023 to 2030, with below pricing models.

  • Value-based pricing model
  • Fixed pricing model

Supplier Selection Scope of Report

  • Cost and pricing
  • Past engagements
  • Productivity
  • Geographical presence

Supplier selection criteria of Report

  • Years of experience
  • geographic presence
  • regulatory standards
  • location of fulfillment center
  • speed of delivery
  • end-to-end visibility
  • return management
  • packaging & branding option
  • customer support
  • others

E-commerce Fulfillment Services Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

  • Market Intelligence along with emerging technology and regulatory landscape
  • Market estimates and forecasts from 2022 to 2030
  • Growth opportunities, trends, and driver analysis
  • Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
  • Porter’s 5 forces
  • Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
  • Engagement and operating models, KPI, and SLA elements
  • LCC/BCC analysis and negotiation strategies
  • Peer benchmarking and product analysis
  • Market report in PDF, Excel, and PPT and online dashboard versions 

E-commerce Fulfillment Services Procurement Cost and Supplier Intelligence

Labor cost, warehousing, and transportation are the major key cost components of this category. Businesses in the category, generally use a value-based pricing model wherein the price of the fulfillment service depends upon inventory storage cost (by cubic foot or by pallet), pick and pack cost (by order or by unit), receiving cost (by shipment or by unit), kitting cost (by the kit or by hour) and customer support cost (either a flat rate or by hour). In addition, many fulfillment service providers can charge an extra fee for added services. For instance, if the time frame set forth in the initial contract with the merchant for warehouse storage is exceeded, suppliers charge back to its clients.

The global industry is dominated by the Asia-Pacific region as the highest utilizer of fulfillment services. The region is anticipated to maintain its dominance throughout the projected timeframe due to the rising penetration of the Internet and the potential opportunities provided by the largely unexplored markets in the region (rural areas and second-tier cities). In addition, nations in the region such as South Korea, Japan, and China represent a significant share of global online sales and are among the top exporters of goods. Thus, the region's e-commerce sector's promising growth prospects are a key driver of the expansion of the regional market. Furthermore, ensuring e-commerce integration (What level of compatibility the provider will have with the processes and business applications), assessing geographic distance of fulfillment center (delivery times are shortened because of the reduced delivery distance and closer location of the order fulfillment center to the final consumer), and negotiating prices & terms with suppliers are some of the best sourcing practices considered in this category. 

List of Key Suppliers

  • Amazon.com, Inc.
  • eFulfillment Service, Inc.
  • Ingram Micro, Inc.
  • Rakuten Group, Inc.
  • Red Stag Fulfillment
  • LLC,ShipBob, Inc.
  • Shipfusion Inc.
  • Xpert Fulfillment
  • Sprocket Express
  • FedEx Corporation
  • United Parcel Service of America, Inc.
  • Deutsche Post AG

Add-on Services provided by Grand View Research Pipeline: 

  • Should Cost Analysis

Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process 

  • Rate Benchmarking

Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier 

  • Salary Benchmarking

Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house. 

  • Supplier Newsletter

A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc. 

Browse through Grand View Research’s collection of procurement intelligence studies: 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to):

  • Market Intelligence involving – market size and forecast, growth factors, and driving trends
  • Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
  • Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
  • Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions