Will online logistics replace retail jobs?

eStore Logistics, an Australian logistics provider designed to service online retail, has announced record growth.

The company claims eStore Logistics’ business grew 288% in 2010 off the back of offering highly customised services to Australia's rapidly growing online retail industry.

The rapid growth of eStore Logistics in 2010 also led to a threefold increase in its staff numbers over the same period, showing that whilst online retail has caused the demise of some bricks and mortar retailers, it has created new job opportunities elsewhere.

Leigh Williams, founder and CEO of eStore Logistics, says the growth in online retail has increased demand for specialised logistics services.

“Internet retailers are unique—they offer hundreds of products and dispatch a high number of small orders to customers across Australia. To provide the best logistics service to them, eStore Logistics has innovated in terms of our IT systems, pick-and-pack processes and in our relationships with Australia’s largest courier companies.

Mr Williams utilised his background in IT at Accenture and IBM to develop these solutions for online retailers.

“eStore Logistics developed a unique warehouse management system that caters for the business requirements of online retailers. In doing so, we have reduced the cost of logistics services for our clients, which allows them to provide lower prices to their customers.

“Exciting new roles are being created at eStore Logistics every month, both in IT and warehousing.

“As more Australians discover the convenience and value of shopping online, many thousands of new jobs are being created to organise and deliver these goods.

“Just as the mining boom led to a remarkable employment surge in the mining services industry, the online shopping boom is leading to something similar in the logistics industry.

“Online retail growth will undoubtedly result in net-employment gain to the Australian economy, even if there are some job losses in bricks-and-mortar retail,” Mr Williams said.