As the number of packages shipped continues to rise each year, shipping company stocks have also been on the rise. So what does this mean for consumers? Well, it’s not all good news. Shipping prices continue to increase as well, so you can expect your online shopping bills to go up accordingly in 2019 and 2020.
Some shipping companies, including DHL and FedEx , have already announced their plans to increase prices in 2019. But as we all know, this will likely not be the last rate hike we see from package delivery services – especially as more online shoppers flock towards e-commerce.
It’s also important to note that these companies are likely trying to offset any losses they experienced during the government shutdown, as well as for the potential losses from a no-deal Brexit.
In this article, we’ll take a dive into all of the rate hikes coming our way over the next few years, and what these changes could mean for you as an online shopper. But first, let’s look at the current state of online shopping, what this means for shipping companies and why e-commerce continues to grow.
E-commerce sales are on the rise once again, with all signs pointing towards continued growth over the next few years. The total number of US retail e-commerce sales in the second quarter of 2018 was $124.1 billion , representing a 10% year-over-year increase, and an all-time high for a single quarter .
There were 516,917 new online stores in 2017, which is 9.44% higher than 2016’s growth rate . This trend looks to continue into 2019, especially with new trends in advertising and product offerings.
What does this mean for the shipping companies? Well, they are seeing more packages being shipped than ever before! According to eMarketer , e-commerce deliveries are on track to triple by 2021. This means that online shoppers are expected to spend over $600 billion on their purchases annually, and that shipping companies will be responsible for delivering over $1.5 trillion worth of packages each year .
This is great news for the shipping industry, but not so much for online shoppers. With e-commerce deliveries expected to triple in just a few years, you can expect the cost of shipping to continue increasing – especially if we consider these companies’ projections.
This is why we recommend online shoppers consider shopping at alternative stores such as Costco , BJ’s and Sam’s Club, which offer lower prices than their competitors, without charging for shipping.