The age of eCommerce, AKA internet shopping, is here to stay. In just four years, total revenue of the U.S. eCommerce industry has nearly doubled, from $670 billion in 2020 to $1.182 in 2024. eCommerce trends are increasing and demand is changing the way logistics companies approach their businesses.
Learn more about how eCommerce growth impacts your supply chain below, and see the ways transportation and shipping companies are adapting to the increased demand.
What Are The Problems or Challenges Facing eCommerce Logistics?
Problems in eCommerce often stem from poor user experience, inefficient logistics, or lackluster marketing—each of which can derail sales and customer loyalty. Total revenue of U.S. eCommerce is estimated to reach $1.83 billion by 2029, an increase of over 50% from 2024. These current and future eCommerce trends present challenges for the logistics industry, and the following elements play big roles.
eCommerce Trends For Logistics Labor Shortages
In 2020, the COVID pandemic accelerated warehouse labor shortages that still persist. Growing eCommerce demand adds more stress to understaffed warehouses and transportation companies.
According to a Descartes study of 1,000 North American and European logistics companies, 61% of respondents have experienced disruptions from understaffing, while 58% said labor shortages impacted customer service.
eCommerce Trends For Faster Delivery
Two-day shipping was previously considered a luxury. But more and more, it’s becoming the gold standard for eCommerce consumers. According to 2023 Data from Parcel Industry, 97% of customers prioritize fast shipping when shopping online with 63% expecting two-day delivery.
This increase in standards is leaving many logistics companies struggling to keep up with the competition.
More Frequent Returns
eCommerce return rates generally range from 17-30%, higher than the return rate at brick-and-mortar stores, which is around 10%. After all, when customers can’t see a product in person, the need for refunds and exchanges goes up.
With general eCommerce orders increasing, returns are expected to grow as well. A UPS Capital report found that the top concerns eCommerce companies faced when processing returns were time, cost, and customer service impact.
Inflation and Tariff Uncertainties
Inflation continues to impact the prices of shipping for both supply chain operators and customers. With an estimated 56% of eCommerce companies dealing in cross-border trade, new U.S. tariffs add another layer of uncertainty.
For example, even with April’s 90-day pause on reciprocal tariffs, the current effective tariff rate for Chinese imports is 40%, already an increase of 20-30% over last year. The combined impact of both elements will likely lead to even more price increases across the board.
How Do eCommerce Trends Impact Logistics?
While eCommerce growth has strained the freight industry, savvy logistics companies are adapting to the market changes by implementing new strategies and technological solutions.
The following eCommerce shipping trends and innovations we’ve seen include the following.
Local Last-Mile Delivery Companies
Last-mile delivery is the last stage of the supply chain, when products travel from the warehouse or distribution center to the customer’s home or business. This last stretch is the most time-consuming and expensive part of the shipping process, accounting for 41-53% of total supply chain costs.
To meet their delivery targets and keep costs down, many ecommerce retailers are working with smaller, local logistics companies for the “last mile” of their product journeys. Local warehouses and distribution centers often have central locations and drivers who know the area like the back of their hand, allowing them to get products on the road faster and choose the most efficient routes.
Customized Customer Service
Customers like having options throughout their buyer’s journey, including during delivery. More and more shipping providers are providing customers with the option to choose a time window for their delivery, like morning or afternoon slots.
Others may let customers do their own last-mile delivery by providing the option to pick up their package at a central drop-off point, like a Kiosk at a local store. Not only can this prevent missed deliveries for packages that need a signature, but it also boosts customer satisfaction.
AI eCommerce Trends
In the logistics industry, AI isn’t just a buzzword. It’s a transformative tool that can save both time and money, especially during crucial last-mile delivery.
For example, new machine-learning AI tools can optimize a delivery route based on GPS data, traffic patterns, and feedback from drivers to pick the fastest routes with the fewest stops. These benefits prevent redundancies and improve customer satisfaction.
AI Warehousing Systems
AI can also make a difference before eCommerce products even leave the warehouse. AI-enabled warehouse tools can track and predict demand patterns, optimize inventory levels, or even improve your warehouse layout.
Additionally, new machines, like autonomous warehouse robots, can improve productivity while eliminating human errors. Warehouse employees don’t have to walk long distances or perform repetitive tasks, which can improve their job satisfaction.
An eCommerce Logistics Company for New England Businesses
If you’re ready to partner with a local New England trucking company that can help your eCommerce business thrive in New England, N&D Transportation is here for you.
Our centrally located Rhode Island distribution center features an organized, efficient warehouse to keep your inventory safe and houses a dedicated fleet ready to ship products throughout the New England area. We’ll treat you and your customers with all the care and respect you deserve, so your business can reach new heights, no matter what the future holds.
Contact us today to learn how we can help your eCommerce business brave the challenges of tomorrow.
