Key Shipping Trends for E-commerce in 2024

How AI-powered sustainable practices, advanced last-mile delivery, and flexible logistics transform e-commerce for success.

Reading time: 7 minutes

Key Highlights in E-commerce Shipping Trends for 2024

• AI-Powered Shipping Optimisation: Streamline logistics with AI for cost and time savings.
• Sustainable Shipping Practices: Use eco-friendly packaging to meet consumer demands.
• Improved Last-Mile Delivery Solutions: Implement parcel lockers and drones for faster delivery
• Rise of Elastic Logistics: Adapt logistics to demand for efficient operations.

Shipping is a critical aspect of e-commerce, and staying updated on the latest trends can help businesses optimize their logistics, reduce costs, and enhance customer satisfaction. Here are some important shipping trends for 2024, supported by recent statistics, data, and case studies, along with practical advice on how e-commerce businesses can leverage these trends.

1. AI-Powered Shipping Optimisation

Artificial Intelligence (AI) transforms the shipping industry by optimizing routes, predicting demand, and enhancing customer experiences. AI can analyze vast amounts of data to recommend the most efficient shipping routes, reducing delays and fuel consumption. According to Statista, the global market for AI in logistics is expected to grow from $2.07 billion in 2022 to $12.97 billion by 2027. DHL implemented AI to optimize their delivery routes, resulting in a 15% reduction in travel distance and a 20% decrease in fuel consumption.

UPS uses an AI-based route optimization tool called ORION, which has saved the company an estimated 10 million gallons of fuel and reduced CO2 emissions by 100,000 metric tons annually. For instance, OptimoRoute helps businesses plan and optimize delivery routes using sophisticated algorithms. Or Routific an  AI-powered route optimization software that has optimized over 191 million deliveries, improving efficiency and reducing costs.

How it can benefit your online store :

For an e-commerce store, integrating AI-powered tools can streamline logistics. AI can help predict peak times, optimize inventory placement, and provide real-time route adjustments. This can lead to faster deliveries, lower shipping costs, and higher customer satisfaction.

• Integrate AI Tools: Use AI software that can integrate with your e-commerce platform to analyze sales data and optimize shipping.
• Predictive Analytics: Implement predictive analytics to manage inventory more effectively, ensuring popular items are always in stock and located in optimal shipping locations.

2. Sustainable Shipping Practices

Sustainability in shipping involves reducing carbon footprints, using eco-friendly packaging, materials, and optimizing delivery routes to minimize environmental impact. Consumers are increasingly demanding greener shipping options. 76% of consumers are willing to pay more for sustainable shipping. It is estimated that by 2030, sustainable practices could reduce logistics-related emissions by 35%.

How it can benefit your online store :

Adopting sustainable shipping practices can enhance your brand’s reputation and attract environmentally conscious consumers. This includes using recyclable packaging materials, optimising order packaging, offering carbon offset options at checkout, and optimising delivery routes to reduce emissions.

• Eco-Friendly Packaging: Switch to recyclable or biodegradable packaging materials.
• Carbon Offsetting: Partner with programs that allow customers to offset the carbon footprint of their deliveries. Although calculating shipping carbon emissions is not essential, it can be beneficial in making informed decisions about sustainable practices, enhancing your brand’s eco-friendly image, and meeting the growing consumer demand for green practices. While it may not be critical, it can offer competitive advantages and align with broader sustainability goals. It involves determination of the route and ports involved in the shipment. Calculating the distance between the port of origin and the port of destination. Using emissions factors (Look up the CO2 emissions factor for the trade lane) and then multiply the emissions factor by the distance and the number of containers shipped.
• Route Optimization: Use software that minimises travel distances and reduces emissions.
• Packaging Optimization: Optimise order packaging by packing products into shipping boxes as efficiently as possible, ensuring the use of the smallest feasible box for each order. This approach minimizes packaging waste, reduces shipping volume, and enhances sustainability efforts.

 3. Improved Last-Mile Delivery Solutions

Last-mile delivery focuses on the final step of the delivery process from the distribution centre to the customer. Innovations in this area include the use of drones, autonomous vehicles, and smart lockers. Last-mile delivery accounts for 53% of total shipping costs. UPS has reduced delivery times by 30% in urban areas through the use of parcel lockers, pickup points and parcel lockers.

How it can benefit your online store :

Improving last-mile delivery can significantly enhance customer satisfaction by reducing delivery times and providing more flexible options. This can involve using local delivery services, implementing parcel lockers, or exploring autonomous delivery options. For example, ShipWisely enhances last-mile delivery by integrating parcel lockers and pickup points into your store. This allows customers to choose convenient pickup locations, reducing delivery times and improving customer satisfaction:

• Parcel Lockers: Partner with companies that offer parcel locker solutions for convenient package pick-up.
• Pickup Points: Set up or collaborate with local delivery hubs to reduce delivery times.

4. Rise of Elastic Logistics

Elastic logistics is a flexible approach to managing shipments and deliveries that allows businesses to adapt quickly to changes in demand, inventory levels, and other factors. Think of it like a rubber band that can stretch or shrink as needed. This flexibility is crucial for responding to market fluctuations and ensuring efficient operations. Ecwid highlights that businesses adopting elastic logistics can reduce shipping costs by consolidating freight into fewer, larger shipments and planning to avoid premium fees. 43% of businesses plan to implement elastic logistics strategies by the end of 2024 to handle supply chain disruptions more effectively.

How it can benefit your online store :

By adopting elastic logistics, e-commerce businesses can better manage inventory and shipping during peak seasons and unexpected surges in demand, ensuring timely deliveries and reducing costs.

• Flexible Contracts: Establish flexible contracts with shipping and warehousing partners to adjust services based on demand.
• Inventory Management: Use advanced inventory management systems to forecast demand and adjust stock levels accordingly.

Conclusion

Staying informed about these shipping trends can help e-commerce businesses optimise their logistics, reduce costs, and improve customer satisfaction. By integrating AI, adopting sustainable practices, leveraging digital documentation, enhancing last-mile delivery, capitalising on lower shipping costs, and embracing elastic logistics, e-commerce businesses can stay competitive and meet the evolving expectations of their customers. To explore how ShipWisely can improve your online store business and shipping we invite you to view our website.