As the digital marketplace continues to evolve, there's been a seismic shift in how consumers shop—and that's especially evident during the holiday season. Thanks to retailers like Amazon and Walmart, expectations of fast, free shipping and competitive pricing have impacted the transportation industry as well, causing trucking companies to reassess their models to meet consumer and delivery demands.
The digital marketplace phenomenon known as "The Amazon Effect," has put the pressure on fleet companies to provide the low-cost and/or no-cost and just-in-time (JIT) delivery service that consumers have come to expect.
Reports indicate that Amazon is projected to generate $258.22 billion in U.S. retail sales by the end of 2018, capturing 49.1% of all online retail spend in the country. This is a 29% increase over last year. This momentum is expected to continue through the holidays shopping season, with predictions that U.S shoppers will spend $128 to 134 billion with online retailers, a 17% to 22% increase over last year. Of those online shoppers, 80% are expected to use Amazon. Transportation companies will need to be prepared to manage shifts in volume and meet this increasingly busy on-demand delivery schedule.
In short, the transportation industry is evolving. Companies are adding to their fleets to provide shorter, more frequent deliveries, investing in more efficient long-haul vehicles and rethinking their delivery models so that they can meet the demanding consumer expectations and delivery pressures. As the retail landscape continues to change, it will be interesting to see how other industries adapt and embrace the disruption brought on by the rise of e-commerce.
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