2020 can be regarded as a year of disruption for logistics and e-commerce. With things slowly coming back to usual, it is necessary to watch out and identify key trends for 2021.
Stats and observations suggest that the packaging and shipping industry will recalibrate to facilitate e-commerce businesses more than ever. Although demand and supply have been one of the issues in recent months, things will stabilize in the next few months.
With e-commerce rising at a lightning-fast speed, merchants who adapt to resultant changing scenarios will certainly earn huge profits. Not to mention, the key success is the development of a robust shipping strategy.
Demands for affordable global shipping options
Most e-commerce brands and crowd funders working in shipping and logistics have operational costs on top of their minds. That is why they look for the cheapest ways to send products to different locations. With the boom of e-commerce, the demand for cost-effective global shipping will also rise.
When it comes to cost management, it is necessary to find the right carrier. You will need to see which carrier provides cost-effective solutions for your shipping requirements. You will also have to optimize your product packaging by shaving off those extra grams to keep shipping costs under control.
Normalized delivery times
In 2020, shipping and logistics had to endure a spike in the number of product deliveries. In 2021, delivery lead time (DLT) will return to normal. Factors that disrupted supply chains in 2020 included pandemic, Brexit, shipping shortages, and the trade war between the US and China.
Several innovations in shipping and logistics should help normalize delivery times in the future. These innovations include shipping container optimization, commercial drone deliveries, and automation.
With operators adjusting to new systems, DLTs should reach the pre-pandemic times.
It has, therefore, become more necessary than ever for merchants to deploy modernized measures to ensure quick and safe product deliveries to their customers. Another way to prevent the frustration of consumers is to allow them to track the transition process.
Popular carriers in the US
The most popular domestic delivery services in the US are USPS, UPS, and FedEx.
E-commerce merchants have been favoring USPS due to its range of cost-effective shipping options. Those options include First Class and Priority Mail.
UPS and FedEx are quite popular as they continue to offer speed and reliability. They also offer the option to track packages. Although courier rates went wonky last year, they should get back to usual in 2021 and beyond.
The US as the world’s largest consumer economy
Although China has made some advancements, the US continues to remain the largest consumer economy in the world.
The reason for the US’s dominance is the geographic location that allows it to remain a primary conduit for cross-border shipping. It also hosts many shipping channels to other countries and regions. It means that cross-border shipping prices should remain relatively stable for US-based merchants in the coming years.
Greener shipping
You may be well-aware of the concept of greener packaging. The upcoming era may bring forward the concept of greener shipping as well. Brands committed to benefit the environment through eco-friendly methods of packaging and shipping will be valued more by the consumers.
