Order Fulfillment Services in the US Industry Market Research Report Now Available from IBISWorld

Although companies are increasingly outsourcing order fulfillment services to industry firms to concentrate on core business functions, the industry has suffered in the wake of lower trade volumes, slow growth in disposable income and decreased demand from retail trade in the past five years. Declines have been mitigated, however, by rising internet usage and online shopping, which spur demand for industry services. Recovery is anticipated in the next five years as the industry benefits from the strengthening US economy and greater inventory from American manufacturers, wholesalers and retailers. For these reasons, industry research firm IBISWorld has added a report on the Order Fulfillment Services industry to its growing industry report collection.

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IBISWorld Market Research

IBISWorld Market Research

The industry will grow as companies increasingly outsource order fulfillment

Los Angeles, CA (PRWEB) October 17, 2012

Firms in the Order Fulfillment Services industry provide services for product owners, including storage and warehousing, order processing, returns and exchanges and administration. An increasing number of companies have outsourced their order fulfillment services to industry firms to concentrate on core business activities and save money. Industry demand is dependent on several factors, including demand from the retail, manufacturing and wholesaling sectors, per capita disposable income and internet usage. “Although a greater number of companies have outsourced order fulfillment services to third party operators in the past five years, industry companies have struggled due to lower trade volumes, slow growth in disposable income and decreased demand from retail trade,” says IBISWorld industry analyst Lauren Setar.

The worldwide economic downturn reduced domestic and foreign consumer spending and caused the value of US trade to plunge. “Along with the weak economic environment,” adds Setar, “falling manufacturing activity, industrial production and inventory levels cut into industry revenue.” As a result, in the five years to 2012, Order Fulfillment Services industry revenue has fallen marginally at an average annual rate of 0.2% to $8.5 billion. The industry has a low level of concentration, as major player DHL is the only industry firm that generates a significant share of industry revenue. Over the five years to 2012, concentration has been stable and the number of industry firms has remained flat.

Due to the recovering economy, the industry's revenue has grown steadily. The industry has benefited from higher production volumes, primarily because of greater disposable income and demand from retail and trade activity. This recovery, combined with steady order fulfillment outsourcing to industry companies, will contribute to a 1.6% revenue increase in 2012. Over the past five years, the industry's slight decline has been somewhat offset by rising internet usage. An increasing number of consumers have internet access and can easily purchase products, which increases demand for order fulfillment services.

In the five years to 2017, the Order Fulfillment Services industry is expected to grow as companies increasingly outsource these services to industry firms. During this time, the industry will also benefit from the strengthening US economy and greater inventory from American manufacturers, wholesalers and retailers. Additionally, the growing number of broadband connections will continue to spur demand for industry services. As a result, industry revenue is forecast to grow in the five years to 2017. For more information, visit IBISWorld’s Order Fulfillment Services in the US industry report page.

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IBISWorld industry Report Key Topics

This industry provides order or product fulfillment services on behalf of the product owner; businesses outsource fulfillment operations to industry firms. Industry services generally include storing goods, receiving orders, packaging, shipping the orders to end-consumers, collecting payment for the order and handling returns and exchanges. Industry firms do not manufacture the products for which they provide fulfillment services, although they can perform light assembly tasks.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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