Due to the unrelenting growth of online shopping and the unquenchable need for quicker, more convenient delivery, the United States e-commerce logistics business is seeing an rapid expansion.
It is anticipated that the US e-commerce market will develop significantly over the next five years, with estimates suggesting a rise of around US$388.4bn, or 51.28%, annually. In light of this, Parcel Monitor’s USA E-Commerce Logistics Market Report 2024 offers an in-depth review of the most recent trends, challenges and opportunities influencing this dynamic market.
Key highlights of the report include:
Overview of the US e-commerce landscape
According to Statista, the number of US e-commerce users is predicted to rise from 254 million in 2023 to over 316 million by 2028, with the market projected to achieve a new milestone of US$1.1 trillion by 2029. Given the significant growth in both user engagement and revenue, the report’s first section thoroughly analyzes the US e-commerce market, offering insightful information on overarching trends, including the rise in popularity of mobile commerce (m-commerce), the higher proportion of male online shoppers, and the prominence of apparel and accessories as the top product categories.
Delivery performance metrics of leading US carriers
In the ever-changing realm of logistics, where efficient transportation of products is crucial for the success of supply chains, it is important to comprehend and harness the significance of key carrier metrics. Therefore, this section of the report offers extensive data on the delivery performance, including average domestic transit times, first-attempt delivery success rates, issue ratios and on-time delivery ratios for leading logistics carriers in the USA.
With carriers reaching an average domestic transit time of just 2.56 days, a remarkable 24.3% increase over 2022, the US logistics market ended 2023 on a positive note overall. These improved efficiency and service quality can be attributed to top logistics carriers like FedEx, UPS, USPS, and others.
For example, UPS set itself out from the competition in 2023 with the lowest average domestic transit time of 2.35 days and the highest on-time delivery percentage of 98.5% among the top five USA-based logistics carriers. Similarly, OnTrac reported an average domestic transit time of 1.47 days in 2023, highlighting its efficiency in rapid delivery.
Consumer preferences among US shoppers
Without its customers, the US economy – currently the largest in the world by nominal GDP – would not be where it is today. American consumers have shown to be remarkably resilient and eager to spend, even in challenging situations like the coronavirus (Covid-19) pandemic or in the face of higher inflation. In fact, customer preferences are changing all the time in the ever-changing world of e-commerce, which makes it difficult for businesses to satisfy customers.
In this constantly shifting environment, research shows that 72.14% of online shopping carts are abandoned before the purchase is completed, making shopping cart abandonment a major obstacle for US e-commerce businesses. Considering this, American customers place a high value on transparency since it fosters trust and directly satisfies the worries of 68% of American buyers who abandon carts due to excessive shipping costs.
In addition, it is critical for e-commerce businesses to streamline the checkout process and provide guest checkout choices to allay the concerns of 22% of respondents regarding security and privacy. Also, considering that over 24% of American customers abandoned their carts because they couldn’t find their preferred payment method, it is equally crucial to offer a variety of secure payment methods.
For the full analysis, download the free report here.