Shipping & Logistics Trends for 2023

Are you a business owner or working in the logistics industry? If so, it’s likely that you’re starting to plan ahead, so you know what shipping and logistics trends to expect for the year ahead.

With the COVID-19 global pandemic still having an effect on cargo shipping and causing shortages, delays, and port shutdowns, businesses are trying to keep things running as smoothly as possible. Despite the barriers, there are ways to reduce holdups and keep customers satisfied.

In this article, we’ll take a look at the shipping and logistics trends that we’re expecting in 2023 and the best ways that you can prepare for them.

Global eCommerce Sales Will Increase to Over $6 trillion

Over $5 trillion was made in global eCommerce sales in 2022, and it is expected that sales will reach $6.31 trillion this year. The biggest global online retailer is Alibaba, which was estimated to make $780 billion in 2022. Amazon made around $690 billion, however, it is predicted that they will take first place and overtake Alibaba’s market share before 2027 and reach over $1.2 trillion in online sales.

Top 10 Countries for eCommerce Sales in 2022

China - $1,535 trillion

United States - $875 billion

Japan - $241 billion

Germany - $148 billion

United Kingdom - $143 billion

South Korea - $118 billion

India - $97 billion

France - $96 billion

Indonesia - $59 billion

Canada - $59 billion

Popular eCommerce Categories

To predict the most popular eCommerce categories for 2023, it’s important to know what performed the best in 2022 and what categories had the highest consumer demand. Here are the 5 shopping categories with the highest revenue worldwide in 2022.

Electronics

As you can see from the graph above, electronics were in first place, bringing in over $1 billion. With the popularity of Amazon Prime and Netflix growing significantly since the global COVID-19 pandemic, this comes as no surprise. People have been turning to entertainment more than ever in the past few years, and we certainly can’t blame them.

Office equipment, laptops, and smartphones have seen a higher purchase rate in 2022 due to more companies implementing a hybrid working policy or fully remote working. This has led to an increase in home working setups.

Also trending are artificial intelligence (AI) apps such as Siri, Google Assistant, and Amazon's Alexa. These AI apps are always improving and have accelerated digital transformation. It is hard to imagine any other eCommerce category overtaking electronics due to how often AI apps are used.

In 2023, $0.98 trillion is expected to be made in revenue, with an average spend of £342 per user. Most of this revenue will be made in China, with a projected market volume of $387.00. The number of electronics users is predicted to grow to around 3,803.4 million users by the end of 2027.

Fashion

Fashion came in at a very close second. With more clothing subscription boxes being introduced to the market, it's likely that this category will only keep increasing in popularity.

In fact, it is expected that over $630 million will be made in revenue from apparel sales in 2023. Accessories are predicted to hit over $319 million and footwear is expected to pass $144 million. The most popular sales channels in the fashion market include Amazon - the leading internet retailer, as well as fashion retailers such as ASOS, Nordstrom, and Zalando.

With styles and trends always changing in the fashion industry, sales show no sign of slowing down. Apparel makes up the majority of fashion items that are purchased, and other popular fashion items include footwear and accessories.

Related post: International Shipping Definitive Guide

Furniture & Home

The furniture and home decor market is expected to reach $348.3 billion by 2027. With remote working trends, it’s likely that people want to improve their home office/living space. This will lead to more money being spent on furniture and home items. It is expected that when ordering furniture, delivery times will be slower as it is a lot more difficult to ship heavier and larger products. So, if you're in the home and furniture business, having a range of couriers to choose from is always a bonus.

Furniture retail alone has a market size of almost $30 billion, which is expected to continue growing. In 2022 the average spend per order worldwide was just over $500.

Food

In 2023 the food segment is estimated to reach over $326 billion in revenue, most of which will be generated in China. The amount of users is expected to reach over 1,437 million.

With more and more restaurants deciding to sell through food delivery apps such as Uber Eats, Just Eat, and Deliveroo, this number can only continue to climb. Ordering food directly to your door has never been easier, and we can only expect more businesses to hop on board, leading to an increase in food revenue this year.

Toys, Hobby, and DIY

It is expected that $715.70 billion will be made in revenue in 2023. The amount of buyers in this category is predicted to grow to 3,323.2 million users by 2027 with an average spend of $299.40 for each user.

The most popular items are DIY, garden & pets, followed by hobby & stationery, sports & outdoor, and finally toys & baby. Popular online toys, hobby & DIY stores include Argos, Thomann, and Office Depot.

Popular Couriers in the US

Choosing a reliable courier to deliver your packages to customers is essential to providing a great customer experience. With so many shipping companies to choose from, it's important to know what the top, most reliable couriers are. Here are the most popular couriers in the US.

USPS

Around 127.3 billion units were delivered by USPS in 2022, which is a drop from previous years. In fact, the volume of mail delivered by USPS has been declining since 2006. However, this figure includes all types of mail that are handled by USPS including the shipping of packages, traditional mail, marketing materials, and periodicals.

The following USPS services are available through Easyship. With us, you will receive the Commercial Plus Pricing (CPP) rates as well as additional discounts. You can rest assured that you will always receive the cheapest USPS rates with Easyship.

• USPS Priority Mail International
• USPS First Class International
• USPS Priority Mail Express
• USPS First Class Package
• USPS Priority Mail Express International
• USPS Priority Mail
• USPS Flat Rate (International)
• USPS Flat Rate (Domestic)
• USPS Parcel Select
• USPS First Class
• USPS Media Mail
• USPS First Class Signature
• USPS Priority Mail Signature

Save up to 89% off USPS shipping costs when you ship through us.

FedEx

In 2022, approximately 6.21 million packages were delivered daily by FedEx, and they generated over $93.5 billion in revenue. FedEx is expected to be worth over $501 billion by the end of 2024.

FedEx offers the following services through the Easyship platform to ship within the United States and to Canada, Australia, Japan, Europe, and 220+ countries and territories worldwide.

• FedEx International Priority®
• FedEx Ground®
• FedEx International Economy®
• FedEx Standard Overnight®
• FedEx 2Day®
• FedEx International First®
• FedEx® Returns
• FedEx Express Saver®
• FedEx Priority Overnight®

Easyship is a certified FedEx Compatible provider. Save time and money when you ship with FedEx through us.

UPS

UPS accumulated over $97.2 billion in revenue in 2021. In 2022, they had a great peak season, leading the entire industry in on-time deliveries in the US for the fifth year running.

The following UPS shipping services are available through Easyship and you can ship within the United States and to Canada, Australia, Japan, Europe, and 220+ countries and territories worldwide.

• UPS Worldwide Saver®
• UPS 3 Day Select®
• UPS Next Day Air®
• UPS® Ground
• UPS 2nd Day Air®
• UPS Worldwide Expedited®
• UPS Worldwide Express®
• UPS Next Day Air Saver®
• UPS 2nd Day Air A.M.®
• UPS Next Day Air® Early
• UPS® Standard to Canada
• UPS® Standard to Mexico

Choose to ship with UPS and save up to 88% off your shipping costs when you ship through our platform.

DHL

You can ship with DHL Express Worldwide through Easyship. However, you also have the option to link your own DHL courier account. DHL Express offers the following services through the Easyship platform to ship from the United States to Canada, Australia, Japan, Europe, and 220+ countries and territories worldwide.

You can save up to 91% on DHL shipping when you ship through Easyship.

With Easyship, you can get access to pre-negotiated discounts for all couriers listed above. We work hard to ensure our customers always have access to the best rates.

Shipping Resources

Here are some useful resources that will help you create a strong shipping strategy and provide a great customer experience:

The Seller's Guide to Domestic eCommerce Shipping

The Free Shipping Policy Generator

Free Courier Comparison Tool

6 Global Shipping & Logistics Trends for 2023

1. Sustainable Methods Will Become a Priority

In the last few years, we’ve seen a huge shift from plastic to paper and other sustainable sources. With the impact that non-sustainable methods are having on the environment, it’s no surprise at all that people are coming together to make big changes to reduce their carbon footprint.

Did you know? 52% of online shoppers in the UK and the US want brands to reduce their packaging to be more sustainable.

There have already been many changes made in the shipping industry to ensure that sustainability is a strong focus, such as, reducing packaging materials, and switching to different materials. Another way things have been changing is through an energy switch. A lot of business owners have moved over to using renewable energy sources that reuse and recycle materials to leave a greener footprint.

We predict that this will continue with even more focus, and businesses will be trying harder than ever to ensure they’re lowering their impact on the environment. Not only will being more sustainable be good for the environment, but it will also please your customers and make your business a more trustworthy and reliable choice.

Related post: 4 Green Steps To a Sustainable Supply Chain

2. 3PL Will Be Used More

As larger companies understand, working with third-party logistics companies (3PL) is key when it comes to shipping, storage, and distribution. However, 3PL is not only great for handling products, but it can also help you to reduce inventory and logistics costs. 3PLs have access to an extensive range of couriers, which means they have the option to choose the most affordable one for each order. As you can imagine, this saves businesses an awful lot of time and money.

There are other benefits to using a 3PL as well, such as leveraging freight buying power, scalability, and access to professional assistance and guidance on how best to fulfill orders.

We predict that 3PL will be used a lot more this year and that businesses will be more considerate when it comes to choosing the right 3PL partner. Using a 3PL partner that is able to deal with last-minute changes and can allow your business to scale up or down is essential to the growth of your business.

However, there can be some issues that arise when it comes to logistics outsourcing and 3PL challenges, so it’s important to be aware of these when considering your 3PL needs.

3. Larger Focus on Return Supply Chain Management

Unfortunately, returns are unavoidable in any business. You can’t please everyone, however, it is good to get feedback on why an item has been returned.

Returns can be a real pain, and no business owner wants to deal with more returns than orders. Customers who wish to return a product want a clear and easy way to do so without contacting the seller to get the information they need. When an order is received, customers should be given clear instructions on how to return the item if they choose to, such as a card that includes the instructions or the purchase confirmation email.

In 2021, over 62% of online customers expected retailers to allow for returns within 30 days of purchase. This shows that the majority of eCommerce users make a purchase expecting that they have at least a month to send any unwanted items back. Due to this, businesses need to ensure that they have a strong return policy in place and a generous returns window, so customers are not disappointed.

Easyship can help you create a free shipping policy generator that includes essential returns information, so your customers know what to expect.

This year, we expect a larger focus on return supply chain management to make the process as smooth as possible. Disruptions in global supply chains are always frustrating, but even more so when there are supply chain disruptions involving returns.

4. More Last-mile Delivery Solutions

With more and more customers expecting next-day or same-day delivery, now is the perfect time to start looking at your last-mile delivery solutions. Once a customer has placed an order, they want to receive it as soon as possible and to be updated on the whereabouts of their package with real-time updates. What this means for business owners is that you need to have a strong shipping strategy in place with a quick turnaround. While the typical method of transport is cars, planes, or ships, the future of transportation could mean a less human approach. Electric, self-driving cars or drones may become the future of deliveries.

It is always a good idea to look for a faster alternative. Keep on the lookout for new last-mile delivery solutions or if you’re feeling creative, come up with your own ideas.

5. Planning for New Risk Events

Nobody wants to be unprepared if disaster strikes, especially if you’re a business owner with customers to look after. An unexpected event such as a natural disaster can occur out of the blue, especially if you’re in a high-risk area. Such disasters will put a stop to production and affect shipments going out, so essentially, your business will come to a standstill until things have gone back to normal.

Though it’s hard to predict risk events, it’s easy to prepare for them. The best way to be prepared is to put together a backup plan. You can do this by asking yourself, ‘ if a natural disaster or risk event were to arise, how would it affect my business?’ Usually, the typical supply chain would be affected, and you’d have less coverage of workers and be unable to get things sent in and out. Your backup plan could include storing extra supplies and having an alternative system at the ready.

While disasters may strike, the most important thing you can do as a business owner is to plan ahead, so your business doesn’t have to stop altogether. Of course, we hope that new risk events don’t occur, but at least you can be one step ahead if ever they do.

6. Higher Inventory Reserves

As mentioned above, it is always good to be prepared for any event. Aside from a natural disaster occurring, there may be a sudden switch in trends or new interest in a particular product. If it’s something you offer, you may wake up one morning to find that you have an influx of orders that have cleaned you out. Though trends can normally be predicted, it’s always good to plan for surprises.

This means that businesses may start holding more inventory than usual and keep products stocked up more than ever before. Remember that carrying too much stock without doing your market research can lead to dead stock. Luckily, there are ways to avoid dead stock, so you won’t end up losing valuable warehouse space. Having good inventory management ensures that you know exactly how much stock you're holding and if you have the capacity to increase your limit.

How Easyship Can Help With Shipping Industry Trends

Easyship is a reliable shipping partner that can assist with all your shipping needs. We have warehousing partners worldwide to assist when it comes to shipping internationally. At Easyship, we provide our customers with the tools required to speed up their order fulfillment procedures and automate their shipping processes.

Here are some of our key features:

• We provide 250+ shipping solutions
• Global tracking system
• Orders synchronization
• A vast network of warehouses
• Pre-negotiated shipping discounts of up to 91% off

Don’t forget to check out our blog to find out about the latest 2023 shipping and logistics trends to watch and industry news.

Are you ready to ship and stay ahead of this year's trends? Then sign up for a FREE Easyship account and let us handle your shipping needs for you so you can focus on taking your business to the next level