It’s no secret that the supply chain industry is constantly evolving and changing. To remain competitive, merchants need to stay up-to-date with the leading shipping and logistics trends to help prepare an effective strategy.
For merchants, 2022 can be the best year yet with an effective shipping strategy. Though Covid-19 may have caused supply chain disruptions, delivery times are expected to normalize towards pre-pandemic times. In fact, the average order volume per merchant increased by 50% from our findings, meaning the pandemic helped drive eCommerce sales.
This article will provide an extensive report based on data Easyship analyzed from shipping transaction data to give you insights about the new year.
Table of Contents
1. Shipping Costs Will Climb
In 2022, we predict that shipping costs will increase. This trend is because of tighter Covid-19 restrictions in Hong Kong and China. Additionally, the increase in shipping costs is attributed to charges levied on delayed cargo, containers, cargo vessels, and aircraft that are unable to move due to personnel shortages at ports and cross-border points of entry.
The increase in shipping costs bolstered the need for affordable shipping options from domestic and international couriers. Luckily, Easyship saves merchants up to 89% off discounted shipping rates for 250+ couriers.
In this section, we’ll focus more on multi-courier solutions and the cheapest cross-border solutions, so merchants can still save big on shipping costs despite rising retail shipping rates.
The most popular US couriers are USPS, UPS, and DHL
Our research shows that the most popular US delivery services are USPS, UPS, and DHL. Historically, USPS is known for its affordable and reliable shipping options for eCommerce merchants. For instance, USPS First Class and Priority Mail are USPS’s most popular and affordable shipping options.
UPS and DHL are also popular options known for their mix of speed, reliability, and benefits like insurance and package tracking.
The cheapest cross border shipping companies from Australia to the US
Like all shipments, shipping rates vary by package weight. The chart below shows Australia’s cheapest cross-border shipping services to the US.
|Quantium||International Economy||0.5kg and below|
|UPS||Domestic Express Saver||10-15kg|
|UPS||Domestic Express Saver||Above 15kg|
Say you’re shipping a 15kg package from New York to Australia. We can get an instant quote for the cheapest rates using our Shipping Rates Calculator.
As we can see, UPS Worldwide Expedited costs $193.80 and takes 5-7 business days to deliver. Plus, you’ll receive excellent tracking so your customers can have improved visibility.
The cheapest cross border shipping companies from the US to the UK
Merchants also benefit from shipping to the UK. Plus, there are affordable cross-border shipping options available for eCommerce merchants. See the options for the cheapest cross-border shipping companies below.
|UPS||Priority Plus||0.5kg and below|
Say you’re shipping a 1.5kg package from New York to the United Kingdom. We’ll use our shipping rates calculator again to calculate the cheapest rates available.
As we can see, Asendia e-PAQ Standard is the cheapest courier service available for cross-border shipping from the US to the UK.
Overall, we predict shipping rates will increase. To curb this issue, merchants should plan accordingly and use Easyship to receive high-volume discounts on all domestic and international shipments.
Shipments without a scheduled pickup increased over 500%
Our data shows that shipments without a scheduled pick-up increased over 500% within the past year. Plus, shipment volume increased significantly, meaning that eCommerce was more concerned about affordable shipping options.
Our research also found that fewer merchants were concerned about shipping with premium tracking but instead preferred more cost-effective shipping options. In fact, we also saw a 1202% increase in shipments with a zero rating for tracking. Overall, our findings could be attributed to people being more cost-sensitive due to the Covid-19 pandemic.
2. Delivery Times Are Normalizing
In 2022, delivery lead time (DLT) is expected to normalize. Supply chains have been disrupted because of the ongoing pandemic and other geopolitical events such as shipping container shortages, port congestion, and labor shortages. Luckily, shipping congestion should become less of a problem in 2022 because of increased shipping capacity.
As seen below, US domestic deliveries arrived in 2.6 days on average in 2021. This finding shows that delivery lead times are approaching pre-pandemic times.
Based on our analysis, the table below shows the average predicted delivery times for domestic and international shipments in 2022.
|Predicted Delivery Lead Times in 2022|
Reliable deliveries are essential to the success of your eCommerce business. In fact, 46% of consumers ranked reliability as one of the top attributes when purchasing online. To avoid unhappy customers, merchants need to develop strategies to curb delivery delays while meeting customer expectations.
Some best practices to curb delivery issues and promote reliable delivery times:
- Communicate and provide clear shipping policies, so there aren’t any hidden surprises for your customers
- Offer package tracking to give your customers peace of mind about their shipment
- Pay a premium for express shipping solutions if your customers expect expedited shipping
- Provide shipping insurance, especially high-value items
3. Customers Are Expecting Elevated Post-Purchase Experience
The post-purchase experience is an integral part of the eCommerce space. In 2022, customers are expecting an elevated post-purchase experience. The customer experience can be enhanced by doing the following:
- Personalized delivery experience
- Worldwide tracking
- 24/7 customer support
- Premium shipping insurance
Fifty-eight percent of consumers won’t make a future purchase because of a poor post-purchase experience. This fact means that eCommerce merchants need to prioritize the customer experience.
Easyship offers up to $10,000 shipping insurance for all your domestic or international shipments, and we provide replay claims within seven days. Plus, our Branding Suite helps eCommerce businesses create a delivery experience consistent with your brand.
4. Commerce is Borderless
Cross-border commerce enables new levels of success for eCommerce businesses. Successful merchants used 2021 to expand the customer base in new global markets and reap the benefits of growing their scope.
Our research found that eCommerce buyers are primarily located in the following three countries:
- The US
Our research found that 96% of global eCommerce buyers live in the top ten eCommerce marketplaces.
These findings can help eCommerce merchants craft their international growth strategy. After all, it’s best to ship to where your customers are located. Businesses looking to scale their business globally should check with their website analytics to see where their customers are.
Not including the top eCommerce markets, eCommerce buyers in 2021 were found in the following countries:
- Singapore (1%)
- The United Kingdom (1%)
- Brazil (1%)
- Hong Kong (1%)
Overall, merchants should use the above information to gain insight into new global markets to enter. This section will continue to highlight how cross-border commerce enables international success.
Shipments using DDP increased nearly 150% within the last year
Easyship data indicates that shipments using delivery duty paid (DDP) increased almost 150% in 2021. DDP is a delivery service where the merchant takes all the responsibility and costs associated with transporting goods from one destination to another.
The increase in DDP merchants can be attributed to merchants wanting to create a better customer experience. This reasoning is because opting for DDP eliminates the need for the customer to retrieve their parcel from their local post office. Plus, the customer doesn’t have to pay for duties or taxes.
Easyship provides dynamic live rates that display the courier service, estimated delivery lead time, and estimated duty and taxes due on delivery. This feature improves customer visibility and unexpected shipping costs.
Average order volume increased 50% per merchant in 2021
Our data reveals that the average order volume increased 50% per merchant in 2021. In addition, our findings show that the Covid-19 pandemic helped businesses drive eCommerce sales while growing globally.
The past year has brought disruptions to the global supply chain, but eCommerce merchants could still find international growth opportunities. This means it’s even more important for eCommerce merchants to use a reliable shipping platform to enable eCommerce growth further.
The top sales channels for merchants are Shopify and Direct Sales
Shopify and Direct Sales claimed their spot as the top sales channels in 2021. However, our data reveals that there is room for multi-channel sales and that it’s more important than ever for sellers to test multiple marketplaces and sales channels.
Shopify and Direct Sales may have claimed their spot as the leading sales channels. However, there are still many valuable sales channels to help eCommerce businesses reach new global markets. Here are the other top sales channels for merchants used in 2021.
|Sales Channel||Growth Rate|
From our data, we found that WooCommerce stabilized in the top 5 platforms, with BigCommerce and Etsy looking for some market share. So overall, there is plenty of room for multi-channel sales.
Easyship integrates with multiple platforms such as Shopify, BigCommerce, Etsy, and many more that can help eCommerce merchants enable global growth.
5. The United States Accounts for 62% of Crowdfunding Backers
Our research indicates that the US accounts for more than half (62%) of global crowdfunding backers. However, Germany (6%) and Canada (5%) are the largest crowdfunding markets.
Less than half (38%) of crowdfunding backers live in the remaining nine countries. This finding indicates that crowdfunders should consider growing their global audience in these markets. The emerging countries to focus on include:
- The UK (4%)
- Australia (4%)
- Netherlands (2%)
- France (2%)
- Sweden (1%)
- Japan (1%)
- Singapore (1%)
If you’re a newbie to crowdfunding, check out Easyship’s Crowdfunding 101 Guidebook. This resource is an excellent way to learn about the basics of strategic planning, marketing, and shipping.
Start planning your crowdfunding campaign with our Crowdfunding Shipping Calculator to receive an accurate quote for your campaign.
6. New Breakout Markets Are Trending
Out of the top consumer countries, the US is the global spending leader in all product categories. Therefore, the data below reflect the gross sales in product categories within a single country.
The top six consumer countries are listed below in order of their gross spending power:
- United States
- United Kingdom
This section will go over the breakout markets that are trending and the top product categories for each country.
The US shops for electronics, fashion, and health & beauty
In 2021, US buyers’ most popular product categories were electronics, fashion, and health & beauty. This finding is no surprise, especially since the US is the largest apparel market globally. Plus, the American beauty and personal care market was valued at $93.1 billion in 2020.
Looking ahead, we predict fashion and health & beauty to remain the top product categories within the US because of their large market share in the apparel and beauty industry.
Australian buyers shop for health & beauty, electronics, and jewelry
In Australia, buyers tend to shop for health & beauty products, electronics, and jewelry in 2021. In 2020, buyers tended to purchase sports & leisure, nutrients & supplements, and board games. With lockdowns caused by the Covid-19 pandemic, it’s safe to say that the ongoing pandemic influenced the current top product categories.
Canada shops for fashion, health & beauty, and sports & leisure
For Canadian buyers in 2021, fashion, health & beauty, and sports & leisure were the top product categories. While most travel restrictions are lifted in Canada, it makes sense that buyers are purchasing fashion and sports & leisure products since people aren’t in lockdown.
Looking ahead, we predict that there shouldn’t be many fluctuations with the top product categories as long as no more lockdowns are imposed.
Singapore shops for sports & leisure, toys, and jewelry
Singapore buyers mostly purchased products in the sports & leisure, toys, and jewelry industry. Therefore, considering Singapore’s market share in the toys and fashion/jewelry industry, our findings on the top product categories make sense.
The UK shops for fashion, health & beauty, and electronics
In 2021, the most popular categories among eCommerce shoppers were fashion, health & beauty, and electronics. However, in 2020, the top categories were health & beauty, board games, and jewelry. These findings, specifically board games, are likely because lockdowns left people confined to the inside of their homes.
Surprisingly, health & beauty stayed the same, which shows that health & beauty remained a priority during the pandemic. Plus, considering the UK has lifted most travel restrictions, it makes sense that people are purchasing more fashion products. Looking ahead, we predict that these categories will remain static.
Brazil shops for electronics, sports & leisure, and toys
Brazil buyers tend to shop for electronics, sports & leisure, and toys in 2021. Since Brazil is the largest eCommerce market in Latin America, it makes sense that electronics is the top product category. Plus, 27% of eCommerce revenue in Brazil comes from electronics and media, following toys and sports & leisure accessories. We predict that these categories will remain static.
7. Increased SMB Support from Global Buyers
In 2021, we saw buyers showing overwhelming support to local businesses. Our data reveals that US buyers grew by 41% within the last year – meaning more people are buying local.
Plus, our data reveals that merchants shipped to over 230 countries, allowing merchants to achieve true borderless commerce. As a result, we believe SMBs will continue to gain more momentum in 2022, especially since delivery lead times are normalizing.
How Easyship Can Help with Shipping and Logistics
By now, you should be well-equipped to take on the realm of shipping and logistics like a pro in 2022. Shipping and logistics don’t have to be stressful, but we hope that you know all the ins and outs of the industry with this guide.
Small and medium-sized businesses will continue to gain more momentum in 2022. However, today more than ever, merchants have access to valuable shipping tools and affordable shipping options to enable eCommerce success.
For eCommerce merchants like yourself, 2022 could be the best year yet. Demand for affordable shipping options is increasing amongst eCommerce merchants and buyers. So by connecting with Easyship, you’ll gain instant access to high-volume discounted shipping rates from 250+ couriers and a suite full of powerful shipping tools like our Shipping Rates Calculator.
Ready to ship? Sign up for a FREE Easyship account and learn how you can ace shipping and fulfillment while saving up to 89% off discounted shipping rates
If you found this article informative, you may enjoy the following: