Thanks to the growth of online shopping, there was a record level of logistics investment in Europe in 2020.
According to the research data analyzed and published by Comprar Acciones, e-commerce growth in Europe drove logistics investments up to €38.64 billion ($46.5 billion) in 2020. It was the highest figure on record since 2013 and was driven by a record up-take of warehouses in the region.
Based on a GLP report, leasing activity in Europe shot up by 69% in 2020, covering agreements over a cumulative 11 million square feet. Amazon, DHL, SF Express and XPO Logistics were among the companies that signed leases.
China’s Cross-Border eCommerce Surged by 31% to $262 Billion in 2020
By the end of the year, warehouse vacancy rates in Europe were down to a record 5%. Alibaba, Amazon and third-party logistic service providers were among the key players driving up demand for European warehouses.
Alibaba handles cross-border eCommerce transactions primarily via its Cainiao logistics arm as well as AliExpress. During Q4 2020, Cainiao had a 51% uptick in revenue to $1.74 billion, courtesy of international online commerce. During the period, Alibaba’s revenue from the segment shot up by 53% to $577 million.
Meanwhile, for Amazon, there were over 1 billion international product deliveries during the quarter. Its international segment grew by 50% YoY, up from 33% in Q3 2020. Comparatively, its North American sales grew by 40%. As a result of this performance from the international segment, its revenue for the first time topped $100 billion. It posted a 44% uptick in revenue to $125.56 billion against an anticipated $119.7 billion.
A study made by eShop World states that almost 70% of consumers globally made cross-border eCommerce purchases in 2020. China, a front runner in the market, had an increase of 31.1% in cross-border eCommerce to 1.69 trillion yuan ($261.5 billion). To keep up with the increase, there was a surge of 80% in overseas warehouses, bringing the total to over 1,800.