Online shopping and outsourcing a source of growth for 3PLs - NAOS International

Online shopping and outsourcing a source of growth for 3PLs

Shop till you drop? Not at all, according to Third-party Logistics providers.

As reported in The Loadstar, a leading news source for freight professionals and shippers, online shopping and the resulting outsourcing of fulfilment from e-commerce businesses have been a significant source of growth for Third-party Logistics providers (3PLs) in the past year.

This trend of outsourcing has grown especially in the European market, where retailers from Asia who want to sell in Europe leverage on 3PLs positioned there. As a result, these companies have experienced double digit growth rates year-on-year using their customised offerings such as cross-docking systems and fragile goods deliveries.

Experts in the industry observed that the “enduring shift towards online shopping” drove an uptick in demand for logistics services and subsequently boosted business growth, despite falling container volumes and freight rates.

With the Asia-Pacific e-commerce market expected to grow at a compound annual growth rate of 10.24% from 2022 to 2027, this trend is likely to continue.

To capitalise on this, additional warehouse space is required to maintain a seamless distribution network. This is especially so as e-commerce companies are still keen to sell in Europe without worrying about distribution.

As the e-commerce market continues growing across Asia-Pacific and Europe, reach out to our Senior Consultants on to hire top talents and support your business expansion.


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