The Role of Logistics in the Advancement of E-Commerce in the UK

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E-commerce businesses in the UK are experiencing very rapid development. It can be seen in recent years that this e-commerce business has become a trend and becomes an opportunity to do business in the community.

Basically e-commerce conducts sourcing and delivery. The purpose of sourcing is to get goods from merchants or suppliers to be traded online, while delivery is the most important thing because this delivery ensures the delivery of goods ordered by customers can be sent on time. You can also use the Tecdis Network service to send items on time.

The rapid growth of e-commerce can provide opportunities for companies engaged in e-commerce business. Opportunities can be seen by e-commerce businesses who can collaborate with logistics service companies to provide solutions to e-commerce logistical management problems that can be seen from aspects of quality, cost and time.

E-Commerce Growth in the UK.

According to the UK logistics market report it is estimated to reach 7.9{fb5515485646cfa27375c4946909380397cdfef5b1af371fe4af9796a5f60572} in the next 5 years until 2021. Freight forwarding is the fastest growing segment with an estimated CAGR of 9.2{fb5515485646cfa27375c4946909380397cdfef5b1af371fe4af9796a5f60572}.

Warehouse Needs Increase

Another report states that the logistics warehouse space needs will increase by around 240,000 m2 by 2021. The increase in demand is in line with the expansion of e-commerce businesses. E-commerce expansion will become a new foundation for the logistics sector, which previously relied on the manufacturing industry.

At present, the sales contribution to total retail sales is only 1{fb5515485646cfa27375c4946909380397cdfef5b1af371fe4af9796a5f60572}. E-commerce businesses have contributed 3{fb5515485646cfa27375c4946909380397cdfef5b1af371fe4af9796a5f60572} of the total supply of 8.1 million m2 of logistics warehouses. Judging from the growth of 20{fb5515485646cfa27375c4946909380397cdfef5b1af371fe4af9796a5f60572} per year, e-commerce contributions are expected to reach 7{fb5515485646cfa27375c4946909380397cdfef5b1af371fe4af9796a5f60572} – 8{fb5515485646cfa27375c4946909380397cdfef5b1af371fe4af9796a5f60572} or worth US $ 14.47 billion in 2021 or increase by 2.08 times. This resulted in the need for 2 times more logistics space.

In general, the logistics industry will grow thanks to the performance of the consumption sector, in line with the UK population growth which in 2020 is estimated to reach 270 million. Compared to 2010, the level of consumption expenditure increased 1.42 times.

The performance of e-commerce is growing rapidly because the industry is reaching all segments, not only to large companies. The presence of logistics support companies or called enabler logistics, greatly fosters e-commerce development. The logistics company Tecdisnetwork provides logistics handling services for e-commerce, ranging from warehousing, distribution, to product photos. The presence of enablers makes e-commerce companies focus on sales without having to handle the delivery of goods.