Procurement Market Intelligence Report
Order Fulfillment Services
Sourcing Guide & Market Intelligence
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United States
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Order Fulfillment Services Global Overview
Definition
Summary
Order fulfillment services involve outsourcing product warehousing and distribution from point-of-sale inquiry to product delivery to customers. Suppliers include large companies such as Amazon and small and midsize companies. Buyers include retailers, wholesalers, e-retailers, and manufacturers.
This Report Includes:
- Warehousing
- Mailing Orders
- Product Repair & Repackaging
- List Management
- Log Keeping
Not in this Report:
- Market Research Mail Surveys
- Product Branding
- Sales Promotion Services
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Global Order Fulfillment Services Procurement Trends
Discover the top international trends affecting procurement in the global Order Fulfillment Services market.
Neutral
Crude oil prices dip, but natural gas and fuel prices remain volatile in 2025
- Oil prices have been falling with the introduction of higher tariffs and the predicted decline in global demand. The OPEC+ group of countries also announced they would be unwinding production cuts and increasing their collective output target for May by 411,000 barrels per day.
- Trade wars, ongoing conflict between Hamas and Israel, and general unrest in the Middle East are causing uncertainty surrounding oil prices, which has led to volatility in prices. In the third week of May 2025, crude oil prices hit $63.67 per barrel, but volatility remains as geopolitical concerns remain.
- Natural gas prices rallied early in 2025 with colder-than-usual temperatures in the United States and high demand, topping out at $4.68/MMBtu in March. Prices have since fallen with the onset of trade wars and weakening demand projections to $3.64/MMBtu in the third week of May 2025.
- The national average of gasoline prices has been rising slightly due to refinery maintenance/outages and blending issues, hitting a national average of $3.15 per gallon in the third week of May 2025. However, gasoline futures have been volatile, falling due to fears of oversupply and deepening concerns about weakening demand with tariffs, but rising after trade deals.
Global Order Fulfillment Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Europe | 4,185 |
| #2 United States | 2,305 |
| #3 Oceania & Southeast Asia | 2,050 |
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Geography Drilldown - US & Europe
Average Cost of Order Fulfillment Services
United States
2026 Market Pricing$1.25 to $X.XX
per orderEurope
Average Price
Prices in the Order Fulfillment Services market range from $1.25 to $X.XX, depending on Storage Space, Pallet Types, Complexity and Value-Added Services. For example, lower prices are associated with Shared warehouse space ($1.25 to $2.50 per order), Smaller warehouse size ($2.00 to $3.25 per order) and Offsite warehousing ($1.50 to $2.75 per order), whereas higher prices are associated with Private warehouse space ($3.00 to $5.00 per order), Onsite warehousing ($2.50 to $5.00 per order) and Larger warehouse size ($3.50 to $5.00 per order).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Order Fulfillment Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Order Fulfillment Services market, prices in the US have grown 1.8% from 2022 to 2025. and +0.6% in Europe.
United States (2022-2025)
Canada (2016-2019)
Compound Annual Growth Rate
Europe (2022-2025)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Order Fulfillment Services
Total cost of ownership is Medium in the Order Fulfillment Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Delays may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Implementation
Financing
Billed During
Storage
Fuel
Support
Unforeseen
Delays
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -1.7 in the United States. Buyer power is most positively impacted by Recent Price Volatility. It is most negatively impacted by Product Specialization. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Computer & Packaged Software Wholesalers
- Internet Service Providers
- Industrial Machinery & Equipment Wholesalers
- Commercial Real Estate Lessors
- Cardboard Box & Container Manufacturers
2nd
Tier Suppliers
- Intellectual Property Licensing Firms
- Transmission Line Construction Firms
- Forklift Manufacturers
- Real Estate Sales & Brokerage Firms
- Paperboard Mills
Biggest Order Fulfillment Services Suppliers in the US by Revenue
The largest Order Fulfillment Services vendors by revenue in the US are eFulfillment Service Inc., Fulfillment Strategies International and Fulfillment Works LLC. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Amazon.Com, Inc. | Global | Seattle | >10,000 | 20-25 | ||||
| Deutsche Post Ag | Global | Bonn, DE | >10,001 | 5-10 | ||||
| Rakuten Inc. | Global | Tokyo, JP | >10,001 | < 5 | ||||
| United Parcel Service, Inc. | International | ATLANTA, GA | >10,000 | < 5 | ||||
| FedEx Corporation | International | MEMPHIS, TN | >10,000 | < 5 | ||||
| Ryder System, Inc. | Global | MIAMI, FL | >10,000 | < 5 | ||||
| Ebay Inc. | Global | SAN JOSE, CA | >10,000 | < 5 | ||||
| Ingram Micro Inc. | < 5 | |||||||
| Pitney Bowes Inc. | Global | STAMFORD, CT | >10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Order Fulfillment Services market is 5.9% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Despite Amazon’s dominance in fulfillment services and market share well above the average, other suppliers are increasingly offering competitive prices for order fulfillment services, thereby reinforcing strong competition in the market.
Vendor risk is low, due to increasing profit and favorable social trends and consumer preferences fueling demand for order fulfillment services.
The supply chain risks are limited, as suppliers do not rely heavily on critical inputs that could threaten the efficiency of operations, thereby mitigating additional risk.
The market lifecycle is in early maturity, as the rise of e-commerce sales has fueled demand for order fulfillment services over the past decade.
As the United States is a net exporter of cardboard, suppliers of order fulfillment services in the country benefit from reliable and potentially cost-effective access to packaging materials, which is crucial for efficient and economical operation in this sector.
Supplier Information
Amazon.Com, Inc.
Amazon.com, Inc. is a global e-commerce company that offers a range of consumer products and services through online and physical stores. It resells merchandise and content and offers products from third-party sellers. It also manufactures and sells electronic devices and develops and distributes media content.... Subscribe to learn more
Deutsche Post Ag
Deutsche Post AG is a global logistics company operating under the DHL and Deutsche Post brands. It organizes its business into five divisions: the Express division, which transports urgent documents and goods on time from door to door, with Time Definite International (TDI) as its primary product; the Global... Subscribe to learn more
Ebay Inc.
Ebay Inc. is a public company operating globally. The company's offerings include order fulfillment services. Founded in 1995, the company is currently headquartered in SAN JOSE, California, United States of America with an estimated 11600 employees. Subscribe to learn more
eFulfillment Service Inc.
eFulfillment Service Inc. is a private company operating globally. The company's offerings include order fulfillment services. Founded in 2001, the company is currently headquartered in Traverse City, Michigan, United States of America with an estimated 75 employees. Subscribe to learn more
FedEx Corporation
FedEx Corporation is a public company operating internationally in the manufacturing, manufacturing, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include business card printing, banners, letter & parcel Subscribe to learn more
Fulfillment Strategies International
Fulfillment Strategies International is a private company operating nationally. The company's offerings include order fulfillment services. Founded in 1996, the company is currently headquartered in Lithia Springs, Georgia, United States of America with an estimated 37 employees. Subscribe to learn more
Fulfillment Works LLC
Fulfillment Works LLC is a private company operating nationally. The company's offerings include order fulfillment services. Founded in 1999, the company is currently headquartered in North Haven, Connecticut, United States of America with an estimated 175 employees. Subscribe to learn more
Ingram Micro Inc.
Ingram Micro Inc. is a private company operating globally in the professional, scientific & technical services sector. The company's offerings include order fulfillment services and it staging services. Founded in 1979, the company is currently headquartered in Irvine, California, United States of America... Subscribe to learn more
Pitney Bowes Inc.
Pitney Bowes Inc. /DE/ is a global technology company providing software-as-a-service shipping solutions, mailing innovation, and financial services. It organizes its business into two segments: the Sending Technology Solutions, which provides clients with physical and digital shipping and mailing technology... Subscribe to learn more
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Procurement Management KPIs for the Order Fulfillment Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Complaints and On-Time Delivery (OTD). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Lost Deliveries and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Customer Complaints |
|
Number of formal complaints Number of negative customer reviews Number of customer reviews |
Buyers should investigate any complaints relating to damaged products or poor packaging. Recurring incidents of the same packaging or damaged items complaints should be discussed with the buyer's selected vendor. Buyers should differentiate between defects related to manufacturing and damages related to poor packaging or assembly conducted by the order fulfillment vendor. |
| On-Time Delivery (OTD) |
|
Number of deliveries Number of on-time deliveries |
Buyers may consider switching to other providers should the notification of delays. Buyers may add stipulations in the contract that mandate that only a certain percentage of shipments (0.0-5.0%) may be delayed, giving them leverage in pricing negotiations. Buyers should track the number of late shipment notices against the total shipments. This is an important metric to determine how frequently products are delayed in order fulfillment. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Experience and Expertise
How long have you been in the order fulfillment business?
How long have you provided service such as this to your longest-tenured client? What are the five largest clients you serve?
Competition
What do you do to keep your rates competitive?
Why should I pay more for your service when your competitor is offering the same service for less?
Service Performance
What is your accuracy rate?
How do you ensure the accuracy and quality of your service?
The ultimate prep for procurement negotations
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Order Fulfillment Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organization, the industry in which they operate, and the purpose of their shipping operations.
Buyers should give an overview of their supply chain, including their production locations.
Statement Of Need
Buyers should detail the scope of work, including all service capabilities that they require.
Buyers should state their preferred locations for fulfillment centers.
Project Budget
Buyers should request a detailed breakdown of the rates applied to the buyer for different types of transportation services.
Buyers should indicate their expectations for payment schedules and methods.
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
