Growth of e-commerce around the world benefits logistics providers
DSV’s easy entry-to-market logistics services are helping reshape the retail environment.
Although e-commerce was growing at a steady rate preCovid-19, the pandemic served to disrupt the traditional retail market by driving consumers towards online retailers.
Logistics companies had to adapt to this new trend to meet both consumer and retailer needs at a time of disruption.
Johan Roos, senior information technology manager at DSV, says e-commerce’s growth and future potential is being driven by consumer safety, accessibility and convenience needs. It’s also broadening the retail space because it offers entrepreneurs exceptionally low barriers to entry.
“A growing number of shopfront platforms are creating low barrier opportunities for entrepreneurs. This is especially powerful when coupled with end-to-end logistics solutions which offer order fulfilment and eliminate the need for retailers to own warehousing and delivery vehicles,” he says.
The latest NielsenIQ Barometer Study revealed that “far from the exception, online shopping has become a ubiquitous part of everyday life in SA: 53% of grocery purchasers … bought groceries online in the past six months,
including 16% who have bought more than half of their groceries online.” The study surveyed 11,000 consumers from 12 different countries including SA.
Statista, a leading provider of market and consumer data, says e-commerce revenue is “expected to show an annual growth rate of 12.46%, resulting in a projected market volume of $11.12bn by 2027”.
It also expects the number of users in the retail delivery segment to reach 5.8-million by 2027, with user penetration growing from 7.2% in 2023 to 9.1% by 2027 while revenue is expected to grow from $0.64bn in 2023 to $0.96bn by 2027.
Christopher Rugg, Business Services manager at DSV, says the data confirms DSV’s experience of a South African market that’s growing exponentially. As a result, DSV is investing accordingly.
“DSV’s extensive logistics capabilities provide entry level and smaller retailers with the same fulfilment capabilities that larger rivals enjoy,” says Rugg.