E-Commerce And Shipping: A Growing Connection

In today’s digital marketplace, more consumers are making online purchases than ever before. From gifts to groceries, all of life’s luxuries and essentials are just a click away. And while it is simple for the browsing customer to make these purchases, they may not think about how the items arrive at their door.

This is where shipping comes in.

Every online order triggers the growing connection between retailers and shipping companies, changing how we think of shopping.

About 78% of U.S. adults have made online purchases, and many of them are doing so often. 69% of people with internet access buy items online at least once per month. While this may seem staggering, the numbers are expected to go up even more.

According to Forrester, an additional 26 million shoppers will be buying from retail websites at the end of this decade. This is because smartphones and wireless networks will make it simple for users to shop from their devices. As this trend grows, we will likely see an estimated $523 billion in e-commerce sales by 2020.

As for the shipping side of this trend, freight companies are becoming more reliant on e-commerce orders. At this time, about 23% of all freight is attributed to retail accounts. And while the trucking industry moved 14.6 billion tons of freight in 2013, experts project that this will go up to 18.79 billion by 2040.

Since shipping demands are changing so quickly, companies are coming up with more creative ways to deliver their goods. A McKinsey survey found that nearly 25% of consumers are willing to pay for same-day or instant delivery, which places additional pressure on shipping companies. This demand is driving more companies to opt for less-than-truckload (LTL) shipping, which allows companies to send smaller shipments and ship shorter distances.

As industry trends and demands evolve, so will the relationship between online retailers and shipping companies. Since the two are dependent on each other, we will likely see creative collaboration to come up with more efficient shipping solutions.