EMERYVILLE, CA, Sept. 15, 2022 – Due to economic ups and downs and the effects of Covid-19 and all its variants, the world of ecommerce has changed dramatically in the last three years. Economic data shows that non-store sales (mostly ecommerce) are up 74% from the first half of 2022 compared to the first half of 2019. At the same time, consumers are spending more than ever with inflation hitting a 40-year high in June at 9.1%.
So what can we expect as we head into shopping and shipping peak season for 2022? AxleHire polled their frontline last-mile experts for answers. While there are several variables that could impact the 2022 peak season, here are AxleHire’s five predictions to close out the year.
Available Capacity
In 2022, capacity (the amount of physical space in warehouses, trucks, vehicles, e-bikes, etc to store, carry, and deliver goods) will not be as big of an issue as it was in 2021. But in 2022, as is the case every year, at some point between Thanksgiving and Christmas, unforeseen demand surges will have some companies scrambling for delivery help at the last minute.
Unpredictable Consumer Demand
No one quite knows what this holiday season will bring as far as consumer demand. Many shoppers are looking forward to getting back to in-store browsing, while others have grown accustomed to ordering online for home delivery or click-and-collect. Add in inflation and a potential recession to the mix of new shopping options and you have a recipe for unpredictable demand. The best carriers can do is remain as flexible as possible.
National Carrier Peak Surcharges
Despite capacity challenges being less of an issue this year, national carriers are already announcing peak surcharges for the season. Charges generally exceed last year’s fees and specifically target large volume shippers. This is in addition to the fuel surcharges shippers are already seeing. National carriers contend the increased fees are necessary to keep service levels high.
Quality, Speed and Price
Retailers will continue to seek the perfect trifecta for shipping this holiday season; quality, speed and competitive (ground rate) prices. Because next-/same-day deliveries allow retailers to take orders as late as possible, they will seek out carriers who can take last-minute orders and can still deliver in under two days at ground rates. As always, once those late orders are in, getting the right package to the right place at the right time will be a recipe for success this holiday season.
Retailers Continue to Invest in Logistics
American Eagle and Gap both announced new shared logistics networks this year, taking matters into their own hands when in the past they have utilized outside carrier networks. Their goal is to give ecommerce brands and retailers the option for a “Prime-like” shipping experience for their customers without having to resort to Amazon. This is a trend that is here to stay.
About AxleHire
AxleHire is an expedited urban last-mile delivery service, providing customers with a superior same and next day delivery experience. AxleHire leverages purpose-built modern technology and a gig driver fleet to drive transformative outcomes that catalyze customers’ brand growth. Logistics teams can now provide a differentiated delivery experience at a competitive cost, overcoming the limitations of legacy delivery providers. AxleHire operates in 17 of the 25 major U.S. metro urban areas across the U.S, enabling high-volume shippers to consistently cater to the rising needs and expectations of their customers.
For more information, please visit axlehire.com.