Industry Analysis & Industry Trends
Although companies are increasingly outsourcing order-fulfillment services to industry operators to focus 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 has spurred demand for industry services. The Order Fulfillment Services industry is expected to recover over the five years to 2020 as the US economy strengthens and inventory from American manufacturers, wholesalers and retailers grows.... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the industry are moderate. There are no licensing requirements or resource constraints that are significant enough to prevent firms from entering. The industry is relatively fragmented, with only a handful of companies holding more than or coming close to 5.0% of market share. However, this low level of concentration leads to a high level of competition that is often based on price and can make it difficult for new entrants to generate profit.
Firms entering the industry face moderate capital costs; industry operators must make large, up-front investments in warehousing facilities, machinery and equipment to handle merchandise, transportation for the delivery of goods and computer systems to manage inventory... purchase to read more