The Shipwire Blog

News and expert insights on global fulfillment and technology.

Subscribe to our blog

Get the latest posts in your email

Subscribe to our blog

Get the latest posts in your email

ARTICLE
Shipwire International Shipping FAQ
Shipwire ships domestic and international export orders from our wide variety of global warehouses to end locations accessible by our large carrier network.
ARTICLE
Fulfillment for Small, Medium and Mid-Market Businesses
Creating and executing a streamlined order fulfillment is critical to growing business, fostering customer relationships and maintaining a competitive advantage.
ARTICLE
Shipwire Small Parcel and Carrier FAQ
Shipwire partners with a large network of transportation carriers to provide domestic and international shipping from small parcel to large freight shipments.
ARTICLE
Shipwire Carriers FAQ: FedEx, UPS & USPS
Shipwire partners with a large network of transportation carriers to provide domestic and international shipping from small parcel to large freight shipments.
ARTICLE
Pros and Cons of Outsourcing Your Order Fulfillment
Outsourcing order fulfillment is a way to offer a great customer service experience while allowing your company to focus on innovation, growth and other key areas.
ARTICLE
Dock to Stock: Successful Inbound Logistics
The fulfillment lifecycle begins when product arrives at a fulfillment center and is received into inventory.
ARTICLE
Returns as a Business for eCommerce Sellers
E-commerce is at an all time peak with no indication of slowing down. With consumers spending more money online than in stores, online brands and retailers are experiencing record breaking return rates.
ARTICLE
What to Look for When Searching for a Third-Party Logistics Provider (3PL) in the U.S.
As ecommerce, retail and dropshipping channels continue to grow across the U.S., the complexity of the logistics involved grow, too.

In terms of impact on industry, retail and e-commerce were both heavily affected by the pandemic — but what changes are here to stay?

Rapid e-commerce acceleration

During the first half of 2020, retailers experienced holiday-like traffic and sales via digital commerce channels, since stores were largely closed and stay-home orders deterred in-person shopping. As a result, e-commerce growth accelerated and according to an Adobe report, online spending in May 2020 hit a record-high of $82.5 billion, up 77% year-over-year.

The adoption rate of digital commerce accelerated by four to six years in the timespan of a few short months, and businesses with pre-established ecommerce sites reaped the benefits of increased traffic and sales (at least for as long as supply could keep up with demand). Conversely, those who had neglected the switch to digital had a lot of catching up to do, and quickly.

Trending now

No one can say exactly how consumer expectations and preferences will change in the future, but here’s what’s trending and some numbers to back it up:
  • With a rise in e-commerce spending, department stores are seeing fewer sales. In Q1 2020, department store sales and other “non-essential” retail sales declined by 25% and this continued further into Q2 (Forbes).
  • 9 of the top 10 global e-commerce companies (by revenue) experienced double-digit growth in 2020 (Global Data Statistics).
  • Global e-commerce sales rose to $26.7 trillion in 2020 (United Nations Report).
  • Globally, consumer spending on mobile is expected to reach $270 billion by 2025 — almost 2.5x the $111 billion spent throughout the pandemic, signalling the dominance of mobile spending (SensorTower Market Report).
  • Shopify experienced 94% YoY revenue growth to reach $977.7 million in Q4 2020 and brought Shopify’s overall revenue to $2.9 billion through 2020 (Shopify).
  • 43% of global consumers are interested in shopping for clothes by leveraging new technologies such as VR/AR technology. This shift from traditional shopping is pushing brands to change their investment strategies to support digital commerce (Supply Chain Digital).
  • 54% of consumers worldwide prefer browsing for new products online than in-store (eConsultancy Report).
  • One-third of U.S. survey respondents declared they will continue to leverage online grocery shopping instead of shopping in-store (Mood Media Research).

In summary, e-commerce was already growing quickly and COVID-19 forced even faster development and most of the developments we’ve seen in e-commerce are here to stay. As a result, it makes sense for companies to continue improving the customer experience they offer to online shoppers.

Market demands and resulting changes

Commerce transactions are faster than ever, shipping is more efficient, and inventory turns over quickly and is stored near shoppers for rapid fulfillment. Customers have come to expect on-demand shipping, quick transit times and visibility into shipping processes.

To meet these expectations, 3PL providers are supporting incredibly complex supply chains and are developing more agile processes to accommodate market shifts. What was previously a behind-the-scenes industry is more visible than ever and the importance of supply chains has been amplified around the world. Some companies are investments in internal supply chains, while others are looking for more immediate support through 3PL providers.

If you’re seeking a supply chain and fulfillment partner with experience, flexibility, a strong physical network and modern technology, get in touch with us to talk about your needs. Peak Season is right around the corner — let’s get your business ready with Shipwire.

{% block invis %}{% endblock %}