E-commerce boom bigger than expected

Analysts expected that it would take until 2030 before online shopping surpassed the brick-and-mortar retail stores but a worldwide pandemic hit fast forward in 2020. Carriers expect an increase of 35-50% over last year as more consumers turn to e-commerce for the convenience it offers both in timing and in facing crowds shopping during a pandemic. Once the balance of buying shifts to online sales it’s unlikely to rebalance back to favor the stores standing locally.

Though the manner in which purchases will occur is favoring e-commerce, the whole of spending this holiday season isn’t expected to be much higher on average. Consumers are concerned about the upcoming election, Brexit, and pandemic support and so aren’t likely to overspend this year, but even without deeper pockets, the shipments will swell. As stores continue to restock and retailers front load cargo to manage inventory through the first of the year and past the Chinese Lunar New Year shutdowns, imports will steadily boom until well into 2010.

The online sales spike is far from a U.S. specific rise. The Royal Mail has added 33,000 holiday workers to handle the shipments over the season to keep up with demand. With second waves of COVID-19 starting to spike alongside flu season overseas, there are logistical blocks to shopping in stores including curfews, square-foot capacity per shopper allowed in stores at a given time, and just reluctance to venture out when so much is available at the click of a button.

The increase of e-commerce and logistics boom is a good sign for department stores struggling with the pandemic market, but it does impact the cargo shipments and inventory supplies that are also booming around the world and the more cargo rises the more capacity declines. It’s times like these that you need a dedicated forwarder working for you. Our international connections and myriad carrier contracts are all available to you to make sure you get the best rates and routings possible. You have a professional to guide you and advocate for your freight. Call your Nelson International representative today!