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Increasing Cost and Complexity of Parcel Shipping

Chris Jones
Increasing Cost and Complexity of Parcel Shipping

Chris Jones is Executive Vice President of Marketing & Services at logistics firm Descartes whose offerings include diverse ecommerce solutions such as warehouse management, along with the ShipRush shipping solution familiar to many small-and medium-sized merchants. He discusses the increasing cost and complexity in parcel shipping in Part 6 of EcommerceBytes Online Selling Trends 2019.

In considering what will drive online selling trends in 2019, and the types of strategies and investments that can help companies meet challenges and provide the greatest returns, the power of parcel will be an important part of the equation.

In 2018, ecommerce continued to grow at record levels and there didn’t appear to be the slowdown that many were predicting. As ecommerce grows, so does parcel shipping, and the rapid expansion of domestic and international parcel shipping is expected to continue.

Carriers established more aggressive pricing and delivery strategies to keep pace with the increasing demand and improve profitability. As transportation’s capacity constraints continue to be a challenge and put additional pressure on pricing, shippers will need to evaluate increasing the number of carriers used and proactively shop carrier options to get the best rates and ensure availability. The good news is that large carriers are expanding their delivery options, and there has been considerable investment in local and regional carriers.

Governments adopted more stringent tariff policies to make sure they were not missing an increasingly large revenue stream from ecommerce direct from Asia. Capturing global ecommerce revenue will become the “new security filing initiative” that has kept governments busy for the last 10+ years.

In countries around the world, governments are starting to recognize there is a significant hole in their management of imports and are putting effort into policies, practices and technology that helps to ensure they are getting all of their money.

As the cost and complexity of parcel shipping increases in 2019, companies will deploy technology solutions that can minimize their parcel shipping costs through more intelligent carrier and mode selection, and effectively address international requirements such as landed costs, restricted party checking, and customs filings.

Introduction to Online Selling Trends 2019: Back to Basics
1) Diversification and Expansion Beyond Marketplaces
2) New Sales Tax Obligations
3) An Increase in Returns Combined with High Demand for Used Goods
4) Major Changes in USPS Rate Structure, Adoption of Voice Technology
5) Retail Convergence Accompanied by Tax Complexities
6) Increasing Cost and Complexity of Parcel Shipping
7) “Glass Box” in Artificial Intelligence, In-Store Personalization
8) Continued Dominance of Ecommerce by Amazon

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.