Less than 10% of retail transactions in Europe take place using the Internet. Over the next few years this will increase 2.5 times

Less than 10% of retail transactions in Europe take place using the Internet. Over the next few years this will increase 2.5 times

The number of foreign online store purchases will be the quickest to grow. It's a challenge for logistics and freight forwarding companies.

According to the new publication by Savills analysts entitled Logistic Megatrends in 2025 the share of online transactions in the retail trade will rise to 25%. The consumers will buy more products in foreign stores as long as the delivery costs are not too high. The cross-border e-commerce value may, according to the authors of the report, grow by up to a quarter a year!

This will have a significant impact on the location of the distribution centres of manufacturers and trading companies – we can expect more warehouses near borders, as well as implementing such solution in the supply chain that will facilitate the process related to customs clearance.

Technology will cause further logistics market changes but the differences in retail commerce models, supply chains, approach to new technologies and the share of e-commerce in different countries mean that there is no single solution that can be used in warehouses and distribution centres throughout Europe" - says Kevin Mofid, Director of Savills Research Department.

At the same time he stresses that such countries as France and Germany, where e-commerce is to increase significantly, have the greatest potential for change, however Eastern European countries, where labour costs are lower and the land resources are larger will also benefits from the changes.

Increasing cross-border sales will result in significant changes. Due to the development of robotics, allowing for more efficient storage and goods retrieval from greater heights, warehouses will be higher. Employees of warehouses may be equipped in exoskeletons which will assist them in packaging and loading goods.

The changes will be the consequence of the development of battery technologies and autonomous electric vehicles which will lead to more common night deliveries as the noise standards will no longer be violated (consumers will receive their orders in the early hours of the morning). The improved stock management systems in stationary stores will ensure that the goods will be delivered to customers directly from the stores, located closer than warehouses. This will reduce both costs and delivery time.

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