Welcome to our fortnightly update for all things eCommerce shipping! Keep up to date with the latest shipping news, trends and advancements. This update is designed to help you stay one step ahead of the competition. Whether you are an eCommerce entrepreneur, logistics provider, or just interested in the industry, check out the latest in this fast-paced and ever-changing market.
Air Freight rates look to continue to fall throughout the first half of 2023, with a potential saving for online stores and ultimately end customers. While rates between East Asia and Europe have fallen by 30-40% compared to 2022, freight analytics platform Xeneta says China-Europe airfreight rates are still up 62% compared to 2019 pre-pandemic levels.
Source: Freight Rates Set to Fall
65% of 1000 UK shoppers questioned for Sendcloud research expect that shipping costs will increase due to inflation. However, 61% stated that high shipping costs are the main reason for them to abandon a shopping cart. This indicates a potential shift in consumer behavior, away from free shipping and towards a willingness to pay for shipping costs in the UK, however, price is still a strong dealbreaker.
Source: Online Shoppers Coming Round to Idea of Paying More for Shipping
Forecast to rapidly grow at 10% a year, the global last mile delivery market is expected to reach $75.49 Billion by 2028. Key factors driving this expected market revenue growth include rapid advancements in delivery vehicles, drones, droids, and a rising inclination toward autonomous delivery. However, growth is expected to be hampered by factors such as rising supply chain corruption and the lack of proper delivery infrastructure.
Source: Last Mile Delivery Market Size & Revenue By 2028: A Comprehensive Analysis of Global Industry Trends and Growth Opportunities | Xcellent Insights
Target has stated it will invest $100 million in constructing a larger network of supply chains. The key aims are to increase delivery speed and reduce the cost of fulfilling online orders. Despite announcing cost cuts of $3 Billion over the next 3 years, Target is betting on strong eCommerce growth. In the coming year, it expects to deliver 50 million packages, up from 26 million in 2022.
Source: Delivery Wars: Target Will Spend $100 Million To Expand Next-Day Delivery—And Compete With Amazon And Walmart
Enabling eCommerce entrepreneurs to make sales without worrying about logistics, Walmart, Amazon and Shopify are all investing in Fulfillment-as-a-service (FaaS). The last quarter saw 400 million SKU’s listed on Walmart Marketplace, while the Shopify Fulfillment Network has seen a 40% increase in orders compared to 2021.
Source: Shopify, Walmart and Amazon Joust for Merchants With Fulfillment-as-a-Service
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