2020 was a challenging year for the retail industry. At the same time, however, the pandemic pushed e-commerce sales to reach unprecedented heights in 2020. Worldwide e-commerce sales have reached $4.280 trillion, a 27.6% increase from the previous year.
Along with the accelerated growth in e-commerce, the e-commerce logistics market also experienced a phenomenal rise. According to Transport Intelligence’s Global e-commerce Logistics 2021 Report, the global e-commerce logistics market grew to €368 billion, a 27.3% jump from the previous year.
So which regions accounted for the biggest growth throughout 2020? Let’s take a look!
Asia-Pacific had the Slowest E-Commerce Growth but had the Biggest Market Size
While the growth in Asia-Pacific ranked last, the region was the largest e-commerce logistics market in 2020, amounting to 41.55% of the world’s e-commerce logistics market. Last year, the region reached new heights with $2.448 trillion in retail e-commerce sales. The APAC market was mostly dominated by China, the world’s largest e-commerce market with e-commerce giants such as Alibaba and JD.com.Asia-Pacific had the Slowest E-Commerce Growth but had the Biggest Market Size
In 2020, Sub-Saharan Africa’s e-commerce logistics market saw the most growth compared to the other regions. Although South Africa’s share of digital shoppers only accounted for 57.7% of internet users; lower than the global average of 77%, its e-commerce market seems to be showing promising growth. The most popular e-commerce marketplace in the region, Jumia, reported a 50% increase in transactions in the first half of 2020.
Singapore Topped the Country Growth Rank
Over the pandemic, the popularity of e-commerce in Singapore has soared. With the closure of brick-and-mortar stores during the lockdowns, retailers had no choice but to shift their strategy to e-commerce. In a joint report by Google, Temasek, and Bain Southeast Asia, Singapore’s e-commerce sales skyrocketed by 87% in 2020. The impressive growth in e-commerce presents a great opportunity for the e-commerce logistics market to continue growing further with a stronger compound annual growth rate (CAGR) of 10.2%.
The e-commerce logistics market growth is expected to slow down to 8.6% over the next five years. However, we foresee that digital shopping behavior will likely stay even with the easing of restrictions. Nevertheless, we look forward to seeing how e-commerce logistics perform this year.
Source: Parcel Monitor, 30 September 2021
Author: Parcel Monitor
About Parcel Monitor:
Parcel Monitor is the global knowledge sharing community dedicated to E-Commerce Logistics for retailers, logistics carriers and end-consumers.
Ti Market Report: Global e-commerce Logistics 2021
Providing comprehensive analysis of the current trends and challenges facing the e-commerce logistics market. The report contains:
– The trends and developments impacting e-commerce logistics in 2021, including the continued impact of Covid-19.
– Comprehensive data and analysis on e-commerce logistics market size and growth from 46 countries as well as forecasts to 2025 by country
– Cost structures of major e-retailers by retail channel, vertical sector and geography
– Interviews and primary research with leading e-fulfilment, last mile providers and retailers
– Strategic profiles of leading online retailers & LSPs