Business, Freight News, Logistics

Freight industry must up its e-commerce game

[ March 4, 2013   //   ]

The freight industry has so far failed to develop the sorts of sophisticated services demanded by e-commerce traders, according to a new report by logistics analysts, Ti.

While Europe’s e-commerce market is flourishing in the face of adversity, defying economic woes and the sluggish performance of overall retail sales – and has provided the express and logistics industry with a very welcome boost, Ti senior analyst and report author Cathy Roberson warns that to date few have developed the sophisticated services which e-retailers demand. “A large proportion of logistics functions are still not out-sourced, as retailers believe that they are better positioned to undertake these operations themselves,” she says. “Likewise the product range provided by carriers is very patchy – as is service quality. The industry will need to up its game, otherwise it will prove a drag on the development of internet shopping as a whole.”

The European e-commerce logistics market was worth €39bn in 2012 but currently the UK, France and Germany account for over 70% of total European online sales. Another factor in the uneven growth of Europe’s e-commerce market is the challenge of working across borders such as language, culture, VAT, banking rules and other national regulations and legislation.

Ti anticipates that the European e-commerce logistics market will grow to about €50bn over the next three years.