Market Trends of US Express Delivery Industry
Increased E-commerce Sales Driving the Market
- According to a Digital Commerce 360 analysis of US Department of Commerce numbers released Friday, US e-commerce revenues will exceed USD 1.03 trillion in 2022. This is the first time that e-commerce revenue has surpassed USD 1 trillion. This exceptional level of sales is accompanied by a minor increase in e-commerce penetration to 21.2% for the year, up from 21.0% in 2021. Year on year, e-commerce revenues increased by 7.7% in 2022. This is a significant decrease from the double-digit growth in each of the previous five years. E-commerce sales growth in 2022 remained somewhat higher than the Commerce Department's projected overall retail sales growth of 6.8% in 2022. Since the Commerce Department began tracking online sales, this is the closest yearly total sales growth has gotten to matching e-commerce sales growth.
- In the United States, the B2C e-commerce business is predicted to maintain global pandemic-accelerated sales in 2022, with major retailers such as Amazon and Walmart set to gain from the country's rising online shopping tendencies. While sales growth slowed in 2021, total purchases remained far above pre-pandemic levels. This decrease in growth rate reflects the fact that consumers returned in-store for their purchases in 2021. While in-store sales increased last year, shoppers continued to buy their products online with the same zeal. The increased convenience of online buying, combined with enhanced fulfilment and delivery services provided by e-commerce companies, is likely to fuel the online shopping trend in the United States in the next years.
- The metaverse can completely change the e-commerce business. Aside from providing instant gratification, the combination of metaverse and e-commerce has the potential to significantly influence customer purchase decisions and increase customer satisfaction. As a result, several e-commerce businesses are investing and innovating in the metaverse arena to provide a better purchasing experience for their customers. Walmart, one of the country's largest retailers, applied for many trademarks in December 2021, implying plans to begin selling virtual items such as toys, appliances, electronics, fashion, recreational equipment, home decor, and much more. In addition, as reported by Bloomberg, Walmart has filed trademarks for the names Verse to Curb, Verse to Home, and Verse to Store, indicating that the company is working on a new product.
Understand The Key Trends Shaping This Market
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Growth in Retail Sector Driving the Market
- Retail is becoming increasingly hybrid, just as hybrid office-remote work arrangements have become more popular. The border between brick-and-mortar and e-commerce is becoming increasingly blurred, and in this changing retail climate, many entrepreneurs are questioning how to best position their small enterprises for a successful year. Retail gurus predicted the retail trends to look out for this year. Technology is constantly reshaping the retail landscape, from self-service kiosks in stores to facilitating the e-commerce boom. However, with the rapid evolution of digital technology, artificial intelligence, and machine learning - as well as the need for retailers to differentiate themselves from the e-commerce crowd - tech adoption has become more pressing.
- However, the retail outlook is not all doom and gloom; retailers have learned a lot about resilience in recent years. Massive changes in demand during the epidemic led retailers to reconsider old procedures in favour of more adaptable operations. They discovered that rapidly changing consumer preferences necessitate more effective analytics and tools for building loyalty. Despite gains in nominal income due to the strong labour market, inflation has reduced consumers' purchasing power. Despite an 8.3% increase in nominal average weekly earnings since December 2020, real earnings have declined by 5%. This will have an impact on consumer demand and, as a result, retail sales volume. Consumer spending on services has been continuously increasing as people return to pubs and restaurants, take holidays, and watch sporting events.
