E-commerce Logistics Driven By LATAM Countries

The increasing number of e-commerce start-ups in countries such as Brazil and Mexico are helping to fuel rapid growth in the e-commerce logistics sector.

According to a new report from Transparency Market Research (TMR), the global e-commerce logistics market was valued at $146.14 billion in 2015, and is set to grow by over 20% between 2016 and 2024. The sector, which is dominated by such large players as Fedex and DHL, and the lesser players of XPO and UPS, will not only see rapid growth over the coming years, but will experience a raft of new entrants.

And fuelling this growth is the large number of start-ups being created in Latin America, as well as India, China and Saudi Arabia.

The global e-commerce logistics sector is seen as an extremely attractive marketplace for many newcomers. And whereas the established companies are preoccupied with staying ahead with innovative concepts such as drones and last-mile connectivity, smaller companies are trying to make their mark by added-valued services, trying to differentiate themselves from their larger competitors.

Technology advances such as sophisticated parcel tracking and route optimisation strategies are a way-in for many of the smaller firms.

The main challenge for this sector, and which might inhibit some growth in the future, is providing e-commerce logistical services in countries with immature infrastructures. Companies operating in such countries, will find it difficult to introduce innovations such as last-mile connectivity and other added-value services.

Reference: Multichannel Merchant