Getting products into warehouses then out to customers has been a difficult challenge due to ever changing geopolitical events. Could technology play a part in changing behaviours?
In this series of features – originally published in the 2022 Global Ecommerce Region Report – DeliveryX looks at ecommerce logistics on different continents.
The North America ecommerce retail market is anticipated to grow at a significant CAGR of 11.7% between 2022 and 2028, with high internet and smartphone usage in the region driving growth. It is also predicted that it will overtake Asia Pacific’s current dominance in the market by 2026. This will no doubt be achieved through the region’s technological advancements and the development of infrastructure in major economies such as the US and Canada.
Wide connectivity, not just online but also the continent’s infrastructure of roadways and railways, is behind this prosperity. The railways of the US and Canada form one of the major railway networks across the region, providing a critical logistics network.
However, the high cost of logistics could put a spanner in the works. Costs of ecommerce logistics in the US increased from around $117bn in 2017 to approximately $196.2bn in 2020. The cost of reverse logistics in major countries of North America is also a concern for ecommerce companies. In 2021, retail
merchandise returned in the United States accounted for $761bn, a big increase from $428bn reported in the previous year.
Additionally, the Federal Reserve Bank of New York stressed earlier this year, in its latest Global Supply Chain Pressure Index, that the increase in air freight costs is putting pressure on an already stressed supply chain.
While rising shipping costs and further supply chain disruption will impact on the North American logistics sector, retailers, brand and delivery companies will turn to technology to ensure continued success, just as the consumers of North America have turned to using their mobiles to shop.
This feature originally appeared in the 2022 Global Ecommerce Region Report.