United Kingdom E-Commerce Logistics and Fulfilment Landscape Outlook

Introduction

In the United Kingdom, the landscape of logistics and fulfilment has become a key enabler of online retail performance. The increasing demand of consumers for fast delivery reliability and efficiency has driven investments in warehousing, distribution centres, last mile delivery networks, and automation technologies. With the continuous expansion of online commerce, investments in infrastructure solutions by logistics providers and retailers support same-day and next-day delivery expectations.

The consumer's purchase behavior has significantly shifted towards online digital shopping platforms. In contrast to product categories, today's customer requires same-day or next-day arrival for their orders. Increased expectation puts a burden on innovation and scaling operations on the logistics and fulfilment providers. Strong fulfilment infrastructure influences customer satisfaction, return rates, and merchant cost structures.

The United Kingdom logistics ecosystem contributes to sustaining the broad-based economic activities. Efficient distribution networks support large national retail brands down to the small and medium-sized enterprises, which rely on third-party logistics partners to reach local and international customers. As logistics systems mature, industry participants are adopting advanced technologies to improve routing, inventory management, and sustainable operations.

This report provides a review of the critical changes affecting the logistics and fulfilment services in the United Kingdom. Key developments range from strategic investments that not only increase operational capabilities but also help address changes in e-commerce demands.

Check out the United Kingdom E-Commerce Market Report to learn how logistics infrastructure supports online retail growth.

Major drivers explained

A strong barometer of momentum in the United Kingdom logistics sector is the award of major new e-commerce contracts and centre expansions. In December 2025, ID Logistics reported that it had won a major contract to operate a new 450000 square foot fulfilment centre in Sittingbourne Kent. The building should be operational in May 2026 and provide more than 300 new jobs. It will enhance the group’s ability to offer value-added warehousing, fulfilment, and distribution to branded retailers in the fast-moving digital commerce sector. Investment in automation and digital technologies at the centre is expected to improve efficiency, scalability, and sustainability across supply chain operations.

In another significant development, this May 2025, Evri and DHL eCommerce United Kingdom agreed to a strategic combination of operations that will result in a parcel delivery group capable of handling over one billion parcels and one billion letters annually. As part of the agreement, the DHL Group took a significant minority stake in Evri and brought together DHL's premium van-based delivery network with Evri's established courier services. The partnership will be designed to extend capacity across urban and regional corridors and support seamless integration between national and local distribution hubs for e-commerce brands across the United Kingdom.

Partnerships between established postal operators and digital platforms also showcase how traditional logistics infrastructure is being modified according to the demands of online retail. In October 2025, it was announced that Royal Mail would partner with TikTok Shop in a deal aimed at strengthening the delivery network available to sellers on the social commerce platform. Working under the agreement, merchants on TikTok Shop had access to Royal Mail’s wide-reaching nationwide parcel collection and delivery services, making the process of shipping and managing logistics easier for minor sellers and improving end-to-end customer experiences.

Beyond individual contracts and partnerships, broader market trends demonstrate a movement toward urban logistics solutions and automated fulfilment options. Research by Prologis in April 2025 estimated that as e-commerce in the United Kingdom has matured, delivery expectations have moved beyond volume growth to intensity and speed. Same-day and next-day delivery standards in cities such as London, Birmingham, and Manchester have pushed demand toward last-mile distribution hubs located close to consumer populations. In helping to reduce delivery distances, the aim is to minimize transportation costs and improve service responsiveness-a reflection of wider shifts in how logistics planning and infrastructure design are unfolding.

Automation and artificial intelligence-driven systems also form an essential part of the fulfilment operations. It is estimated by the industry that, by 2030, more than a majority of the United Kingdom's fulfilment centers will employ automated technologies in order to better track and sort inventory for order processing. The adoption of these systems enhances efficiency and reduces manual labor, thus supporting scalable operations that are supposed to meet fluctuating demand patterns.

Table of contents

1. Overview of logistics and fulfilment landscape in the United Kingdom
2. Key distribution network infrastructure
3. Warehousing capacity and regional hubs
4. Last mile delivery models and trends 
5. Major fulfilment centre expansions
6. Strategic logistics partnerships
7. Integration of technology and automation
8. Sustainability and green logistics solutions
9. Cost drivers and operational challenges
10. Future outlook for logistics and fulfilment

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