Fulfilment Centers

Goals

To provide an understanding of the end-to-end fulfilment centers market for fashion online stores including: the market size broken down by type (enterprise, small/medium size business, and pure-play online store).; the expected annual growth of the market size broken down by type and geography; the top 10 fulfilment centres for fashion online stores and their market share; key fulfilment features that online fashion retailers use to capture their customers; and case studies of fashion online retailers/brands that outsource their order fulfilment to 3rd party logistic players

Early Findings

Fulfilment Centers Market Overview, Size and Growth

  • "E-commerce fulfilment companies are third-party vendors that fulfill orders for companies such as traditional e-commerce companies, online sellers via marketplaces, or even brick-and-mortar stores that do not possess warehouse and distribution facilities."
  • The global fulfillment services market was valued at $44 billion in 2017 and is expected to reach a value of $55.6 billion by 2021, growing at CAGR of 4-5%.
  • The fashion e-commerce market segment global size is estimated at $718 billion in 2020, and is the largest B2C e-commerce market segment.
  • The revenue in e-commerce market amounts to $2.2 trillion in 2020. This means that fashion e-commerce makes up about 32.6% of the overall e-commerce market ($718 billion/$2.2 trillion x 100).
  • Assuming that this proportion also applies to the global fulfilment services market, then the fashion segment in the fulfilment services market can be estimated to reach a value of $18.1 billion in 2021 (32.6% of $55.6 billion).
  • From Grand View, the global warehouse order picking market or the order fulfillment centers market was valued at $5.84 billion in 2018 and is anticipated to grow at a CAGR of 10.2% between 2019 and 2025. The key factor driving the growth of the market is the rapid development of the e-commerce industry.
  • Based on the previous calculation that the fashion e-commerce segment can be estimated to make up 32.6% of the e-commerce market, then the order fulfilment centers for the fashion category can be estimated at 1.9 billion (32.6% of $5.84 billion).
  • Leading up to 2018, for 2 decades, the e-commerce fulfilment market has grown at a rate of better than 20%.
  • The fulfilment services market is mature in regions such as Western Europe, North America, Australia, Japan, Hong Kong, and Singapore, while APAC and parts of Latin America are expected to be the future growth driven markets.

Types of Fulfilment Centers

  • Enterprise/large e-commerce fulfilment companies include: Fulfilment by Amazon and FedEx Fulfilment.
  • Pure-play fulfillment services companies include: Radial Commerce and Red Stag Fulfillment
  • New disruptors/startups in the e-commerce fulfilment market include: ShipBob and ShipMonk, and are using technology to provide lower-cost e-commerce fulfillment solutions.

Summary of Findings

  • In our first hour of research, we found that information on fulfilment services market as well as order fulfilment centers market sizes is available. However information specific to the fashion segment is not readily available. Based on information on the fulfilment services market and the order fulfilment centers market sizes, as well as the size of the overall e-commerce market and the fashion e-commerce segment sizes, we have provided an indicative estimate of the fashion category. In general, requested information specific to the 'online fashion segment' including market sizing by type and geography of fulfilment center for online fashion retailers, and competitors and their market share for online fashion retailers, does not appear to be publicly available. A broader approach to the research may have to be adopted.
  • We have assumed a global focus.
  • We propose continued research as elaborated below:

Proposed next steps:

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