Shipping is the lion's share of e-commerce fulfilment costs in the United States. A study from 2023 revealed that ** percent of allocated costs were due to shipping services. Product handling did not go over *** percent, including the costs of wrapping paper.

Analysis of ‘ E-Commerce Shipping Data ’ provided by Analyst-2 (analyst-2.ai), based on source dataset retrieved from https://www.kaggle.com/prachi13/customer-analytics on 28 January 2022.

--- Dataset description provided by original source is as follows ---

Context

An international e-commerce company based wants to discover key insights from their customer database. They want to use some of the most advanced machine learning techniques to study their customers. The company sells electronic products.

Content

The dataset used for model building contained 10999 observations of 12 variables. The data contains the following information:

• ID: ID Number of Customers.
• Warehouse block: The Company have big Warehouse which is divided in to block such as A,B,C,D,E.
• Mode of shipment:The Company Ships the products in multiple way such as Ship, Flight and Road.
• Customer care calls: The number of calls made from enquiry for enquiry of the shipment.
• Customer rating: The company has rated from every customer. 1 is the lowest (Worst), 5 is the highest (Best).
• Cost of the product: Cost of the Product in US Dollars.
• Prior purchases: The Number of Prior Purchase.
• Product importance: The company has categorized the product in the various parameter such as low, medium, high.
• Gender: Male and Female.
• Discount offered: Discount offered on that specific product.
• Weight in gms: It is the weight in grams.
• Reached on time: It is the target variable, where 1 Indicates that the product has NOT reached on time and 0 indicates it has reached on time.

Acknowledgements

I would like to specify that I am only making available on Github in Data collected data about product shipment to Kagglers. I made this as my project on Customer Analytics stored in GitHub repository.

Inspiration

This data of Product Shipment Tracking, answer instantly to your questions: - What was Customer Rating? And was the product delivered on time? - Is Customer query is being answered? - If Product importance is high. having higest rating or being delivered on time?

--- Original source retains full ownership of the source dataset ---

In 2023, Yurtiçi Kargo was the most common shipping provider, being offered by almost half of the stores in the Turkish e-commerce market. Aras Kargo came second in the ranking, offered by ** percent of webshops.

These are the top reasons why people choose to shop online today. If you aren’t offering free shipping on your ecommerce store, it might be time to think about adding it.

According to a survey conducted in 2022, around ** percent of surveyed e-commerce enterprises in Vietnam confirmed having their own shipping method to deliver products to consumers. Meanwhile, about ** percent of them said they used third-party delivery services. E-commerce is one of the fastest-growing economic sectors in Vietnam.

The Ecommerce Shipping Software market has become an essential component of online retail operations, facilitating efficient logistics management for businesses of all sizes. As eCommerce continues to expand globally, fueled by the surge in online shopping, the demand for streamlined shipping solutions has skyrocket

United States E-Commerce Transactions: Volume: Business & Consumer Services: Shipping & Logistics data was reported at 349.000 Unit in 10 May 2025. This records a decrease from the previous number of 923.000 Unit for 09 May 2025. United States E-Commerce Transactions: Volume: Business & Consumer Services: Shipping & Logistics data is updated daily, averaging 1,371.000 Unit from Dec 2018 (Median) to 10 May 2025, with 2322 observations. The data reached an all-time high of 33,756.000 Unit in 01 May 2020 and a record low of 167.000 Unit in 22 Jun 2024. United States E-Commerce Transactions: Volume: Business & Consumer Services: Shipping & Logistics data remains active status in CEIC and is reported by Grips Intelligence Inc.. The data is categorized under Global Database’s United States – Table US.GI.EC: E-Commerce Transactions: by Category.

As per Cognitive Market Research's latest published report, the Global E-commerce Logistics market size will be $1,864.6 Billion by 2030. E-commerce Logistics Industry's Compound Annual Growth Rate will be 19.4% from 2023 to 2030. Market Dynamics of E Commerce Logistics Market

Key Drivers for E Commerce Logistics Market

Rapid Expansion of Online Shopping and Digital Marketplaces: The increase in global e-commerce transactions has heightened the necessity for effective, rapid, and scalable logistics solutions to meet growing customer expectations.

Growth of Cross-Border and Global E-Commerce: Online retailers are progressively focusing on international markets, which is driving the demand for strong international shipping, customs clearance, and last-mile delivery systems.

Technological Innovations in Warehouse and Fleet Management: Automation, robotics, GPS tracking, and route optimization technologies are improving operational efficiency and decreasing delivery turnaround times.

Consumer Demand for Rapid and Same-Day Delivery Services: The rising popularity of same-day and next-day delivery options is compelling logistics providers to enhance fulfillment centers and urban distribution networks.

Key Restraints for E Commerce Logistics Market

High Last-Mile Delivery Expenses and Complexities: The final stage of delivery is costly and logistically intricate, particularly in rural or congested urban regions, affecting overall profitability.

Infrastructure and Traffic Issues in Developing Markets: Subpar road conditions, absence of digital address systems, and unreliable postal services obstruct seamless e-commerce logistics in emerging markets.

Challenges in Reverse Logistics and Return Management: Handling elevated return volumes—particularly for fashion and electronics—introduces additional costs and complexities to logistics operations.

Environmental Issues and Carbon Emissions: The rise in delivery vehicle traffic and packaging waste presents sustainability challenges, leading to demands for more eco-friendly logistics practices.

Key Trends for E Commerce Logistics Market

Expansion of Micro-Fulfillment Centers in Urban Locations: Retailers and logistics companies are establishing small, automated warehouses in urban areas to accelerate order processing and minimize delivery times.

Integration of AI and Data Analytics in Logistics Strategy: Machine learning and real-time data tools are enhancing inventory placement, delivery routing, and demand forecasting in e-commerce logistics.

Rise of Third-Party Logistics (3PL) and Fulfillment-as-a-Service Models: E-commerce companies are increasingly outsourcing logistics to specialized providers to scale quickly and reduce capital expenditure.

Focus on Sustainable and Eco-Friendly Delivery Methods: Companies are exploring electric vehicles, bicycle couriers, recyclable packaging, and carbon-neutral initiatives to align with green consumer values. Definition of E-commerce logistics:

E-commerce logistics is well-defined as the supply chain through which a company's online customer orders are fulfilled. This is the process from the point of manufacture until the product is delivered to the consumer-commerce logistics include providing warehousing, transportation, value-added services, packaging, and other services. The development of digital technology led to a surge in the demand for several applications in the e-commerce logistics market.

As of February 2024, USPS was the most used shipping carrier by online stores around the world, with over ******* stores using their services. UPS and Fedex followed on the list, with ******* and ******* stores respectively. Each of the above-mentioned shipping carriers are based in the United States.

Snapshot img

Ecommerce Fulfillment Service Market Size 2025-2029

The ecommerce fulfillment service market size is forecast to increase by USD 233.4 billion, at a CAGR of 18.4% between 2024 and 2029.

The market is experiencing significant growth, driven by the surge in ecommerce adoption and the tech-driven transformation of fulfillment services. As more consumers turn to online shopping, the demand for efficient and reliable fulfillment solutions is increasing. Ecommerce businesses require fast and accurate order processing, inventory management, and shipping to meet customer expectations and maintain a competitive edge. However, the market faces challenges related to logistics. The complexity of managing multiple sales channels, ensuring on-time delivery, and dealing with returns and reverse logistics can be daunting. Additionally, the need for real-time inventory visibility and the integration of various systems and platforms can be a significant hurdle.
To capitalize on the market opportunities and navigate these challenges effectively, ecommerce businesses must focus on implementing advanced technologies, such as automation, machine learning, and real-time data analytics, to streamline their fulfillment processes and enhance their customer experience. By doing so, they can improve operational efficiency, reduce costs, and maintain a strong competitive position in the market.

What will be the Size of the Ecommerce Fulfillment Service Market during the forecast period?

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The market continues to evolve, driven by the dynamic nature of consumer expectations and business requirements. Seamless integration of customer satisfaction, shipping and handling, returns management software, order fulfillment software, demand forecasting, route optimization, cost efficiency, data analytics, order tracking, picking and packing, packaging materials, and rfid technology are essential components of this market. Customer service integration and ai-powered logistics are transforming the industry, enabling real-time tracking and predictive analytics to optimize supply chain performance. Kpi tracking and warehouse automation, including pick-to-light systems, conveyor systems, sorting machines, and labeling systems, ensure efficient order processing and inventory management.

Cross-border e-commerce and last-mile delivery are gaining significance, with customs brokerage and freight forwarders playing crucial roles in international shipping. Reverse logistics and inventory turnover are becoming essential for businesses to manage returns and maintain optimal stock levels. E-commerce platform integration, payment gateway integration, and delivery notifications are essential for providing a seamless shopping experience. On-time delivery, order accuracy, and delivery speed are key performance indicators that impact customer satisfaction. Sustainable packaging and green logistics are emerging trends, reflecting the growing importance of environmental concerns in business operations. Business intelligence and integration apis enable data-driven decision-making and streamlined workflows. The market's continuous unfolding is shaped by evolving patterns in e-commerce, requiring adaptability and innovation from fulfillment service providers.

How is this Ecommerce Fulfillment Service Industry segmented?

The ecommerce fulfillment service industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Service

  Shipping fulfillment
  Warehousing and storage fulfillment
  Bundling fulfillment
  Others


Retail Channel

  B2B
  B2C


Application

  Apparel and footwear
  Consumer electronics
  Home and kitchen
  Sports and leisure
  Others


Business Segment

  Large enterprises
  SMEs


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Service Insights

The shipping fulfillment segment is estimated to witness significant growth during the forecast period.

Ecommerce fulfillment services play a pivotal role in the industry, ensuring timely and efficient delivery of goods to customers. These services encompass various aspects of logistics, from inventory management and order processing to packing, transportation, and last-mile delivery. Third-party fulfillment providers are a popular choice for ecommerce businesses, offering specialized expertise and infrastructure. To optimize fulfillment processes, providers integrate technologies such as pick-to-light systems, barcode scanners, co

Snapshot img

Instant Shipping Market Size 2024-2028

The instant shipping market size is forecast to increase by USD 43.14 billion at a CAGR of 8.13% between 2023 and 2028. The market, specifically in the realm of grocery delivery and perishable commodities, is experiencing significant growth due to escalating consumer demand for effective services and the growth in online purchasing. This trend is driven by the global increase in trade activities and the adoption of advanced freight transportation methods, such as drone technology. The adoption of drones, or unmanned aerial vehicles (UAVs), is a promising solution for addressing the challenge of last-mile deliveries, especially in areas with difficult terrain or congested urban spaces. However, the market faces challenges, including ensuring customer satisfaction and managing the complexities of perishable commodity logistics. Effective temperature control and timely delivery are crucial factors in maintaining customer loyalty and trust. As the market continues to evolve, addressing these challenges will be key to success.

What will be the Size of the Market During the Forecast Period?

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The market is a significant aspect of business growth in the B2C e-commerce sector. With the increasing adoption of online retail shopping, customer expectations for swift and convenient delivery services have become a priority. Long delivery times are no longer acceptable, as e-shoppers seek a seamless customer experience. Delivery infrastructure plays a crucial role in ensuring quick product delivery. E-commerce platforms must invest in advanced logistics operations to meet the demands of their customers. Internet penetration and the availability of reliable delivery services have made it possible for e-commerce businesses to expand their reach through cross-border sales.

Consequently, customer satisfaction is a critical factor in the success of e-commerce businesses. Quick product delivery is a key component of a positive customer experience. Inventory management and warehouse management systems are essential for ensuring that products are readily available for shipping. Cold Chain logistics is a growing area of focus in the market. This mode of transportation is necessary for maintaining the quality and integrity of temperature-sensitive goods. Strategic alliances with delivery services and mode of transportation providers are essential for ensuring efficient and cost-effective operations. The market presents numerous opportunities for business growth. E-commerce businesses that can offer quick and reliable delivery services will gain a competitive advantage.

Also, last mile deliveries are a significant challenge, and a multi-modal system can help streamline the delivery process and reduce shipping costs. In conclusion, the market is a vital component of the e-commerce landscape. Meeting customer demands for quick product delivery requires a logistics infrastructure and strategic partnerships. E-commerce businesses that prioritize delivery operations and invest in advanced technologies will be well-positioned to capitalize on the opportunities presented by the growing e-commerce market.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  E-commerce
  Automotive
  Pharmaceuticals and healthcare
  Consumer electronics
  Others


Customer Type

  Business to customer
  Business to business


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    Japan


  Middle East and Africa



  South America

By Application Insights

The e-commerce segment is estimated to witness significant growth during the forecast period. The market in the United States caters to businesses and consumers seeking quick product delivery, prioritizing convenience and efficiency in today's digital marketplace. As online shopping continues to grow, consumer expectations have evolved, demanding faster delivery times, often same-day or next-day. In 2023, retail e-commerce sales in the US reached an estimated USD 1.1 trillion. Projections indicate a 22% increase by 2027, surpassing USD 1.3 trillion. This growth is fueled by expanding internet access, the rise of mobile commerce, and the growing preference for swift, hassle-free shopping experiences across all sectors. To meet the increasing demand for fast deliveries, businesses are adopting multi-modal transportation systems, combining various modes of transportation to optimize shipping times and costs.

Effective inventory management is also crucial in ensuring timely deliveries and maintaining customer satisfaction. Last-mile deliveries, the final leg of the shipping process, are receiving significan

Information Technology Usage and Penetration - Table 720-87002 : Proportion of establishments with e-commerce sales, e-commerce purchases and e-delivery as well as value of e-commerce sales as a percentage of total business receipts

United States E-Commerce Transactions: Value: Business & Consumer Services: Shipping & Logistics data was reported at 172,161.110 USD in 10 May 2025. This records a decrease from the previous number of 459,399.697 USD for 09 May 2025. United States E-Commerce Transactions: Value: Business & Consumer Services: Shipping & Logistics data is updated daily, averaging 460,145.738 USD from Dec 2018 (Median) to 10 May 2025, with 2322 observations. The data reached an all-time high of 5,418,975.000 USD in 01 May 2020 and a record low of 53,823.000 USD in 03 Feb 2019. United States E-Commerce Transactions: Value: Business & Consumer Services: Shipping & Logistics data remains active status in CEIC and is reported by Grips Intelligence Inc.. The data is categorized under Global Database’s United States – Table US.GI.EC: E-Commerce Transactions: by Category.

The Last Mile Delivery (LMD) for E-commerce has emerged as a critical component within the logistics and supply chain sector, addressing the final leg of the delivery process where goods travel from a transportation hub to the customer's doorstep. This segment is pivotal for enhancing customer satisfaction and strea

Graph and download economic data for E-Commerce Revenue for Water Transportation, All Establishments, Employer Firms (DISCONTINUED) (ECREF483ALLEST) from 2009 to 2015 about e-commerce, water, employer firms, revenue, establishments, transportation, services, and USA.

Graph and download economic data for E-Commerce Revenue for Air Transportation, All Establishments, Employer Firms (DISCONTINUED) (ECREF481ALLEST) from 2009 to 2015 about e-commerce, air travel, travel, employer firms, revenue, establishments, transportation, services, and USA.

United States Retail Sales Nowcast: sa: YoY: Contribution: E-Commerce: E-Commerce Transactions: Volume: Business & Consumer Services: Shipping & Logistics data was reported at 0.111 % in 12 May 2025. This stayed constant from the previous number of 0.111 % for 05 May 2025. United States Retail Sales Nowcast: sa: YoY: Contribution: E-Commerce: E-Commerce Transactions: Volume: Business & Consumer Services: Shipping & Logistics data is updated weekly, averaging 0.000 % from Feb 2020 (Median) to 12 May 2025, with 274 observations. The data reached an all-time high of 4.787 % in 17 Jun 2024 and a record low of 0.000 % in 28 Apr 2025. United States Retail Sales Nowcast: sa: YoY: Contribution: E-Commerce: E-Commerce Transactions: Volume: Business & Consumer Services: Shipping & Logistics data remains active status in CEIC and is reported by CEIC Data. The data is categorized under Global Database’s United States – Table US.CEIC.NC: CEIC Nowcast: Retail Sales.

According to a survey conducted in March 2023 in Japan, the majority of shoppers stated that they would not order online if shipping fees needed to be paid. However, if shipping fees were required, respondents were lower amounted the lower their order value was. Only *** percent of online shoppers were willing to pay shipping fees of over ************ Japanese yen for orders valued at over ** thousand yen.

Snapshot img

US B2C E-Commerce Market Size 2025-2029

The us b2c e-commerce market size is forecast to increase by USD 289.2 billion at a CAGR of 8.7% between 2024 and 2029.

The B2C E-Commerce Market in the US is experiencing significant growth, driven by the increasing trend of online spending and the widespread adoption of smartphones. Consumers are increasingly turning to e-commerce platforms for convenience and the ability to shop from anywhere at any time. The emergence of omnichannel retailing, which integrates online and offline channels, is further fueling this growth. However, the market also faces challenges, with logistics management becoming a critical aspect of e-commerce operations. The need to efficiently manage and deliver products to customers in a timely manner has resulted in high overhead costs for retailers. Effective logistics strategies will be essential for companies seeking to capitalize on the opportunities presented by the growing e-commerce market while navigating these challenges. Success in this market will require a focus on providing seamless shopping experiences, efficient logistics, and competitive pricing. Companies that can successfully balance these factors will be well-positioned to thrive in the dynamic and evolving e-commerce landscape.

What will be the size of the US B2C E-Commerce Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the B2C e-commerce market in the US, omni-channel retail strategies have gained prominence, integrating bricks-and-mortar stores with online platforms for a seamless customer experience. Cloud computing enables businesses to manage their operations more efficiently, while multi-channel marketing caters to consumers' preferences. Customer journey mapping and experience (CX) optimization are key priorities, with video and influencer marketing playing crucial roles. Logistics optimization and security audits ensure smooth transactions and safeguard sensitive data. Blockchain technology, data encryption, and data warehousing bolster security and streamline processes. Digital wallets and mobile payments facilitate hassle-free transactions, and live streaming and responsive design enhance user interface (UI) and customer engagement. Supply chain management, big data, predictive analytics, and delivery automation optimize operations, while two-factor authentication and personalized recommendations cater to individual consumers. Social commerce and content marketing foster community building and brand loyalty. Innovations like delivery drones and augmented reality try-on features continue to shape the market landscape. As e-commerce competition intensifies, businesses must stay agile and adapt to the latest trends to thrive.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeB2C retailersClassifiedsApplicationConsumer electronics and home appliancesApparel and accessoriesPersonal careOthersPlatformMulti-brandSingle-brandGeographyNorth AmericaUS

By Type Insights

The b2c retailers segment is estimated to witness significant growth during the forecast period.

The B2C e-commerce market in the US is experiencing significant growth, driven by the increasing preference for online shopping and the availability of secure payment platforms. E-commerce sales have been on the rise, with consumers drawn to the convenience and wide product selection offered by digital retailers. To enhance customer experience, companies employ marketing automation, social media marketing, and personalized recommendation engines. Customer service is also prioritized through multiple channels, including chatbots and AI-powered support. Subscription models, inventory management, and order management systems ensure seamless transactions, while compliance regulations safeguard consumer data. Data analytics and machine learning enable targeted customer segmentation and personalized marketing. Mobile commerce (m-commerce) and voice search optimization cater to the growing use of mobile devices for shopping. Loyalty programs and product reviews foster brand loyalty and trust. E-commerce platforms offer various payment gateway options, ensuring secure transactions using the latest security protocols. Augmented reality (AR) and virtual reality (VR) enhance the shopping experience, while shopping cart software and shipping logistics streamline the ordering process. Fraud detection and A/B testing are essential for maintaining customer satisfaction and trust. Returns and refunds are managed efficiently, ensuring a hassle-free shopping experience. Onlin

The multi-carrier shipping software market is experiencing robust growth, driven by the increasing need for e-commerce businesses to streamline shipping operations, reduce costs, and enhance customer experience. The market, estimated at $5 billion in 2025, is projected to maintain a healthy Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, the surge in e-commerce transactions necessitates efficient shipping solutions capable of handling multiple carriers and complex logistics. Secondly, the demand for real-time tracking and visibility throughout the shipping process is growing rapidly, driving adoption of software that provides comprehensive data and analytics. Finally, advancements in technology, such as artificial intelligence and machine learning, are enabling more sophisticated functionalities within multi-carrier shipping software, such as predictive analytics and automated label generation, further boosting market growth. However, market growth is not without challenges. Integration complexities with existing enterprise resource planning (ERP) systems can pose a significant barrier for some businesses. Furthermore, the need for continuous software updates and maintenance, along with potential security concerns related to sensitive shipping data, represent ongoing restraints. Despite these challenges, the long-term outlook for the multi-carrier shipping software market remains positive, driven by ongoing e-commerce growth and the increasing adoption of advanced shipping technologies. Segmentation within the market is significant, with different solutions catering to small businesses, enterprises, and specific industry verticals. Leading players such as Shippo, Shopify, Pitney Bowes, and BluJay Solutions are actively competing in this space, constantly innovating to enhance their offerings and maintain their market share. The geographic distribution of market share will likely favor regions with high e-commerce penetration and robust logistics infrastructure, such as North America and Western Europe.