Times are gone when packaging was delivered on horseback and ponies. Then there were only carts used for mail carriage and other such facilities. Since then, the shipping and logistics industry has continued to grow at a rate of 4.5%, with no signs of slowing down.
Last year, the total value of shipments in the United States was estimated to be around $1.5 trillion. This number is expected to rise in the coming years as e-commerce continues to grow in popularity.
So how many packages are shipped in the United States? According to USPS, they delivered 27 million packages per day in 2022. FedEx ships an average of 10 million packages daily, while USPS ships around 4,900 pieces per second.
That is Not All the Shipment?
And those are two of the many shipping companies operating in the United States. It’s safe to say that millions of packages are shipped daily in this country.
Businesses today must be able to ship their products if they want to succeed. With e-commerce growing at a rapid pace, the need for fast shipping is only going to increase in the coming years.
Package shipping has come a long way in recent years. What used to be a slow and expensive process is now fast and affordable for businesses of all sizes.
Besides, shipping companies have invested in infrastructure and technology to keep up with the growing demand. As a result, package shipping has become an essential part of the modern economy.
Year after Year, an Exponential Growth Rate
This is an industry that is only going to continue to grow in the years to come. With the rise of e-commerce and online shopping, more and more people are having items shipped to their homes. This convenience comes at a price, though, and that price is often shipping costs.
For many retailers, shipping costs are one of the most significant expenses. In fact, for some businesses, shipping can account for up to 30% of their total operating costs. With such a large percentage of their budget being spent on shipping, it’s no wonder that retailers are always looking for ways to reduce these costs.
One way that retailers have been able to offset high shipping costs is by using packaging services. These companies provide packaging materials and expertise from going to brick-and-mortar stores.
It’s not retail e-commerce that’s driving this growth. Business-to-business (B2B) shipments are also increasing as companies become more comfortable using e-commerce platforms to buy goods and services.
What does this mean for the packaging and shipment industry? Quite, it means that there is a lot of potential for growth in the coming years. Companies that capitalize on this trend by investing in new technologies, automating their processes, and offering competitive pricing will be well-positioned to take advantage of the growing demand for shipping services.
Delivering Packaging as a New Player
To show how much Amazon Logistics has grown in the last few years, the company delivered 1.9 billion packages in the United States in 2019—a 155% year-on-year growth compared to its parcel delivery volume in 2018. This netted Amazon over 53.7 billion U.S. dollars in revenue worldwide.
It’s exciting to imagine what the future holds for packaging. Will Amazon’s drone deliveries be the norm rather than the exception? Will forwarders find even more ways to make shipping faster and more streamlined? Only time will tell.
This was an opportunity that Amazon didn’t pass up. 2020 was a year for the online retail giant to beef up its delivery network: Amazon Logistics. According to CNBC, the company hired 275,000 full-time and part-time workers and even added 100,000 seasonal workers last December to keep up with the increasing demand.
Now that we are in 2023 and the pandemic is almost over, it doesn’t seem like things will be slowing down anytime soon for the packaging and shipment industry. That means more growth opportunities for Amazon (and other delivery services).
The Future of Packaging and Shipment in America
The pandemic has forced everyone to change how they live and do business. It has also put a lot of pressure on delivery services, which are struggling to keep up with the surge in online shopping. This has led to some exciting innovations in packaging and shipment.
One of the most exciting changes is Amazon’s drone delivery service. This is still in its early stages, but it has great potential to become the norm rather than the exception. Drone delivery is fast, efficient, and eco-friendly.
It also eliminates the need for costly infrastructures, such as warehouses and distribution centers. Another promising innovation is forwarders’ ability to make the shipping faster and more streamlined. This is especially helpful for large or heavy items. Forwarders can optimize the shipping process by using technology to track packages and schedule deliveries.
This helps to ensure that packages arrive on time and in good condition. The future of packaging and shipment is exciting and full of potential. With the right innovations, we can expect faster, more efficient, and greener delivery services.
By having a great understanding of the industry, I design packaging that catches the eye, is on-brand, and is safe for consumers. Complies with all regulations and does not exceed the organization’s budget.
