2024 is shaping up to be a year of significant change for parcel and LTL shipping. The industry is riding the tide of continued ecommerce growth, the rise of competitive shipping services and price wars, and an increased demand for sustainability. In addition to these trends, there’s a noticeable push towards improving customer service, with companies investing more in technology to enhance the customer experience.
Four Ecommerce Shipping Trends:
Here are four key trends and tips to achieve successful ecommerce shipping in the new year:
Let’s take a deeper dive into each trend and what you can do to maximize success for your business.
Key Takeaways
- Implement multi-carrier shipping software now to prepare for growing volume.
- Diversify your shipping carriers to take advantage of competitive services and prices.
- Include sustainable shipping options in your carrier mix and let customers choose.
- Provide an excellent delivery experience to keep your customers coming for more.
Trend 1: Continued Growth of Ecommerce
Ecommerce is continuing to grow at a rapid pace, and this will drive demand for shipping services. According to the International Trade Administration, “Global B2C ecommerce revenue is expected to grow to USD$5.5 trillion by 2027 at a steady 14.4% compound annual growth rate. Leading segments for B2C ecommerce in order are: consumer electronics, fashion, furniture, toys/hobby, biohealth pharmaceuticals, media & entertainment, beverages, and food.”
What to do:
It’s time to choose a scalable shipping solution to smoothly manage growing order volumes. Choose one that can easily handle a high volume of orders and can integrate with multiple ecommerce sales channels and shipping carriers. This will allow you to ship products to customers worldwide quickly and easily, even during peak seasons.
Trend 2: Competitive Shipping Services (and Prices)
New shipping services and prices can emerge at any time, impacting the cost and speed of shipping. For example, 2023 brought us Amazon Shipping, a new ground package delivery service for Amazon sellers, which allowed more sellers to offer delivery seven days a week (Amazon, 2023). USPS also introduced USPS Ground Advantage to offer affordable coast-to-coast 2-5 day ground shipping (USPS, 2023).
In 2024 we expect to see new competitive prices for USPS Ground Advantage, which means a 5.4% price increase over 2023 rates. This increase is less than both UPS and FedEx, which will increase shipping rates by an average of 5.9% in 2024 (Supply Chain Dive, 2023). Amazon Shipping is still a wild card with no rate information readily available, though they are positioned to compete with FedEx and UPS (AP News, 2023).
What to do:
Diversify your shipping carrier mix in 2024 to take advantage of competitive shipping services and prices. Using a real-time rate shopping tool, you can easily find the fastest, cheapest shipping option to keep your delivery promise.
Trend 3: Increased Demand for Sustainable Shipping
Sustainability is becoming increasingly important to businesses and consumers. In a recent study by Descartes, 89% of ecommerce consumers said they take sustainability into their purchasing decisions. The shipping industry is under pressure to reduce its environmental impact, and we expect to see shipping companies focusing more on sustainability in 2024 and beyond.
What to do:
Include sustainable delivery options in your shipping carrier mix for the customers who want them. Not everyone wants the cheapest shipping option, and some customers willingly pay a little extra for sustainable shipping. One of the benefits of multi-carrier shipping software is the ability to automatically select and apply a sustainable shipping service such as Sendle to certain orders via automation rules.
Trend 4: Push to Improve Customer Experience
Ecommerce businesses must focus on providing an excellent customer experience in 2024. What does that look like? In a study by PwC, almost 80% of US consumers said that speed, convenience, and helpful service are the most influential elements in providing good customer service. Further, “One in three consumers (32%) say they will walk away from a brand they love after just one bad experience.”
Descartes’ recent consumer sentiment study also underscores the importance of a positive customer delivery experience, stating, “Amongst those who experienced delivery issues, 24% of respondents say they have lost trust in a delivery company, while 21% did not order from the retailer again” (Descartes).
What to do:
Control your shipping costs and fulfillment process by replacing manual processes with shipping software. This will result in cheaper shipping and faster order fulfillment, and that makes happy customers. ShipRush also offers branded tracking pages and email notifications to improve the customer delivery experience. Read more about how branded tracking can take customer experience to the next level.
2024 is a pivotal year for ecommerce businesses, with a lot of exciting potential. Descartes is here to support you in expertly handling the changes and opportunities the new year will bring. Get ShipRush for free and start preparing now.