A few short years ago, retail e-commerce sales worldwide had an estimated value of more than 3.5 trillion US dollars. The growth anticipated for e-commerce revenues was more than expected and e-commerce revenue has grown significantly across almost all sectors and in virtually every market. There is no doubt that e-commerce is impacting freight forwarding.
Online shopping and e-commerce freight forwarding still constitute some of the most popular online activities worldwide. Domestic sales are increasing and global e-sales have never been higher as countries such as China, India, and Indonesia among many others are seeing an increase in import and export rates because of that increase.
According to BusinessWire, “The global B2C e-commerce market exhibited strong growth during 2015-2020. Looking forward, the publisher expects the market to grow at a CAGR of around 9% during 2021-2026.” Considering some current analysis calculates that at least one in every six dollars spent by consumers in the US is spent online with e-commerce purchases, it becomes obvious why freight forwarding services are so vital within the digital shipping and transportation industry.
E-Commerce Expansion and Its Relationship to Freight Forwarding
Several factors are contributing to and escalating the demand for quality products and services through online portals, websites, apps, and retailers. This represents one of the main factors positively influencing the market as the increased need for e-commerce freight forwarding services helps prop up otherwise recovering economies and niche markets. While the need for business attire for example may have dropped due to more employees working from home, the need for other types of clothing and the increased interest in fast and simple fashion has helped offset that blow to the clothing and fashion market somewhat. To stay competitive, it is essential to have a good understanding of the trends within the industry, to keep up with current trends and demands, and watch the supply chain closely for potential disruptions.
Top Trends Driving E-Commerce Expansion
E-commerce freight forwarding expansion has largely been spurred by many factors, especially within the last few years. Some of the top trends impacting the digital market and e-commerce supply chain include:
- Reaction to the pandemic and the related disruptions it caused across multiple markets.
- Customer pent-up demand stemming from supply shortages and lockdowns.
- Ongoing peak season demand ahead of the major end-of-the-year holidays.
- Changing global trade policies in other countries impacts global supply and demand.
- New equipment in construction is being designed and built-in response to supply issues.
- Ability to get anything on-demand, at home, or on the go, and have it delivered.
- Same-day service and fast and affordable three-day-or-less options are widely available.
- Sustainability goals, green initiatives, and consumer interest in corporate values.
- Shifts in interests and values among consumers move to a more personal view.
- Safety concerns and the ability to remotely engage in things done face-to-face before.
- Time and money-saving opportunities are becoming of increasing importance.
- Smarter tech stacks, software, apps, websites, and options becoming user-friendly.
- Continued focus on meeting consumers where they are to address needs and concerns.
In light of the current state of recovery the domestic and global markets are experiencing, it is little wonder the need for e-commerce freight forwarding is stronger than ever.
New Technology Makes E-Commerce Freight Forwarding Easier
Like much of business and personal life today, technology has a tremendous impact on freight forwarding services, especially in light of the e-commerce trends. The innovative and collaborative technology of e-commerce freight forwarding makes it easier to manage complex supply chains and forwarding lines by providing the following:
- Centralized logistics timelines are easily viewed and updated.
- Shipment updates and alerts are sent automatically to all parties.
- Data-driven decision-making for better response to disruptions.
- Online shipment management and logistical planning.
- Optimized execution of routine processes within the network.
- Digital document management and recording systems.
- Communications storage and collaborative platforms.
- Easier onboarding of freight forwarding system software and tools.
- Instant customer service for an optimized customer experience.
Ensure Your Operation Is Future-Ready for E-Commerce and Forwarding Needs With Cargologik
When dealing with current market trends, customer experience considerations remain key. E-commerce throughout multiple markets and supply chains continues growing at a rapid rate, leading to increased pressure and demand for better e-commerce logistics, and the renewed attention to service and price competition among market leaders. Most corporates are searching for ways to transform their business models to adapt to current supply chain bottlenecks, supply deficiencies, capacity issues, driver shortages, and other economic and market shortcomings. Contact Cargologik today to learn more about capitalizing on e-commerce freight forwarding opportunities.