Online retail is driving the growth of logistics in China

According to market research data from Statista, the e-commerce sector in China continues to expand. In 2020, the market reached a volume of $1.82 trillion, with a forecasted growth to $2.01 trillion by 2029. This surge is stimulating demand for logistics services, including warehousing, order fulfillment, and last-mile delivery.

The increasing number of consumers favoring online purchases is fueling demand for warehouse space for storage and inventory management. In response, Chinese 3PL logistics providers are expanding their infrastructure by constructing new warehouses and distribution centers, often strategically located near major cities to optimize delivery.

"Order fulfillment has become a crucial element in e-commerce operations. Due to heightened competition and rising consumer expectations regarding delivery speed and quality, online retailers are increasingly turning to external logistics providers to manage the entire order fulfillment process, from reception to packaging and delivery," notes Sun Jun, country sales manager at AsstrA.

As the volume of online orders grows, Chinese logistics companies are actively investing in new technologies and infrastructure development to enhance last-mile delivery services. This includes the use of drones, autonomous vehicles, and other innovative approaches.

The development of e-commerce in China significantly contributes to the growth of the 3PL industry in the region, creating new opportunities for providing a variety of logistics services to online retailers and other businesses. AsstrA embraces the challenges of this expanding market segment and offers clients innovative logistics solutions.

For expert consultation on logistics matters or rate calculation, please contact our team at china@asstra.com.