Virtually all experts have predicted that holiday spending will grow significantly for 2019. While trade war tensions and stock market volatility may somewhat impact that growth, it’s doubtful that it will be by much. Low employment, increasing wages, and high consumer confidence have put the U.S. economy on an upswing that’s expected to translate into increased spending over the holiday months.
Here are some important statistics to know around the two driving factors for the shipping industry this holiday season—volume and speed.
VOLUME
There’s more shopping happening than ever before, largely via e-commerce channels. The increase 2018 holiday spending will likely push 2019’s numbers to new heights.
That was a 4% increase from 2017 and similar growth is expected for 2019.
This highlights the massive demand and sky-high expectations put on shippers and warehouses over a short two-month period each year. It will also add pressure to the industry this year—with Thanksgiving falling later in the year (November 28) and hence launching Cyber Week and the official holiday shopping season, consumers have six fewer days to make purchases than in 2018.
Salesforce also estimates that Black Friday alone will bring in over $7 billion in the U.S. and nearly $40 billion globally in online sales.
That’s a 64% projected increase over the next 20 years, the vast majority of which will be transported by trucks.
SPEED
This holiday season, free and fast shipping is on consumers’ wish lists, especially with six fewer days between Thanksgiving and Christmas.
As retailers like Amazon, Wal-Mart, and Target have known for a long time, free shipping has become an automatic for consumers.
This isn’t just the U.S.—these results include shoppers from the U.K., France, and Germany. This is a global expectation.
Are you prepared for the surge in shipping this holiday season? Read this related article about how to manage the transportation risks in last-mile logistics.