United Kingdom (UK) E-commerce Logistics Market Overview, 2027

The digital era has sparked changes in delivery logistics with the advent of technology in the c-commerce industry. The online sales industry has undergone a massive change over the years. E-commerce logistics represents the logistics of internet sales that involves setting up specific processes to respond to a particular flow management. It is accompanied by e-commerce transport that requires a different organisation of retail transport. It takes over the different tasks of a supply chain, like pick-up of orders, providing transport systems, delivering to the end user, storage, and other services. IoT has made it possible to track parcels in real time and has become a necessity to overcome delivery problems or loss. The consumer remains informed all the time. The growing expertise in the field is another advantage to drive the market's growth further. They offer last mile delivery and specific e-commerce logistics that are tailored for industries and regular clients. They also help to optimise supply chains, study flows, design packaging and so on. E-commerce logistics are critical in projecting brand image and trust, as well as building customer relationships. Changing consumer lifestyles and shopping habits fuel the demand for e-commerce logistics. Cloud computing, mobile applications, and social networking are the rising e-commerce trends that offer lucrative businesses for industries. Additionally, the rising warehousing services provided by e-commerce logistics companies for business growth is expected to fuel market demand further. The future is promising with drone deliveries and artificial intelligence with automated delivery systems or the ability to deliver in tough terrain.

According to the report titled, United Kingdom (UK) E-Commerce Logistics Market Overview, 2027, the market is anticipated to grow over the forecast period as online merchants are increasingly opting for outsourcing of logistics for error-free, fast delivery and on-time delivery to consumers. They not only help in logistics but also return management, inventory flow, and warehousing in some cases. Thus, the e-retailers' work is eased out as the supply chain management is overlooked by these e-commerce logistics partners. In recent times, delivery partners have emerged as contactless deliveries in pandemic times to overcome the spread of disease. As it becomes easier for the logistics company to keep records for the same and burdens the online retailer with these jobs, e-commerce logistics is expected to grow the inventory and returns management services. They can focus on other aspects of the industry. International delivery often takes place with third party involvement and is not much developed for e-commerce sales. It is also costly, so it is less opted for. The domestic road transport system is the most effective way to deliver parcels to remote locations, which makes it more imperative. By product type, electronics and apparels and accessories top the lists for maximum e-commerce sales. This is due to lucrative discounts offered on these platforms and doorstep delivery and easy returns policies.

The challenge faced by the industry is consumers' privacy as they trust them with not only basic information like contact numbers and addresses but also bank details. The risks of data breach have increased as a result of e-commerce logistics. The pollution added by the transport vehicles due to increased vehicular traffic on the roads is a challenge for the logistics companies. But, over a period of time, the invention of electric vehicles is expected to lead to a greener delivery system that is environmentally friendly. Logistics companies are adopting the electric vehicle trend for their logistics needs because they are cost-effective, lightweight, and environmentally friendly. Fraudulent purchases or cash on delivery transactions increase online retailers' concerns because customers may reject their purchases, resulting in revenue loss for the companies.

For a number of reasons, the e-commerce logistics market is expected to grow slowly. Price is a major factor in e-commerce logistics services as it has to be a fair price keeping in mind the consumer's capability. The fuel prices and manpower needed are highly price sensitive. If the price is too high, it may result in the abandonment of the basket. However, it can be overcome by offering discounts and price schemes to consumers so they do not feel the burden of the price. The delay in shipping and delivery causes anxiety to consumers as they are highly impatient to receive their orders as soon as possible. In some cases, the consumer is lured into paying a higher price for quick delivery. It is a messy job to handle and process the returns by the logistics provider as brands do not want to discourage the buying habits of the consumers and it affects the brand image of the product. For this, mastering the process and at the same time thinking of cost-effective solutions is of utmost importance. Growing environmental concerns have created challenges for the packing of these products for transit and adaptability to possible returns.

Transportation services lead the market growth as it is essential for logistics service providers, and warehousing and other services fall under optional services if they wish to provide them. The integration of e-commerce logistics with transportation management software (TMS) has boosted the e-commerce logistics market's growth. TMS aids in planning deliveries across the supply chain. Transportation plays an important role in successful e-commerce transactions. It offers scheduled delivery with flexibility, tracking and doorstep delivery. This helps online retailer’s gain customer confidence by providing efficient services and on-time delivery that further accelerate e-commerce sales and logistics.

Domestic e-commerce logistics has gained prominence in the industry with the rise in home delivery services and the growth of online shopping. Consumers are inclined towards quick and door-step deliveries for even their basic needs like groceries, medicines, and other household necessities. The busy consumer lifestyle where both partners are working mostly prefers online shopping rather than wasting time hopping from store to store to buy different products. Online retailers have made it effective to purchase all their needs from a single platform, which saves a lot of time for consumers. This is a major factor in increasing domestic logistics. Domestic e-commerce unveils a bucket of opportunities for small enterprises and individuals involved in trade, reducing the price of purchases and expanding their sales in developed and developing countries. This enhances the domestic e-commerce logistics market.

The pandemic in a way bolstered the e-commerce logistics market as consumers were confined to their homes and opted for essentials at the click of a button. Consumer e-commerce shopping has increased as internet penetration has increased. The approach changed from C2C to B2C with last mile deliveries. Consumers have now become accustomed to e-commerce purchases and are expected to remain the same after the new normal. At the same time, logistics service providers pushed themselves to become more tech-savvy to meet the delivery needs of online firms at competitive costs. The adoption of electric delivery vehicles has led to greener systems.

Considered in this report

• Geography: United Kingdom (UK)
• Historic year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report

• United Kingdom (UK) E-Commerce Logistics market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By service type in the report:

• Warehousing
• Transportation
• Other Service (Return, Inventory management)

By operational area in the report:

• International
• Domestics

By transportation mode in the report:

• Road
• Rail
• Air
• Sea

By product type in the report:

• Electronics
• Apparel and Accessories
• Home Furnishing Products
• Health, Personal Care and Beauty
• Auto and Parts
• Baby Products
• Books
• Others

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to e-commerce logistics industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.