State of E-Commerce in the US 2021

(Click to
view the HD version
of this infographic)
870 billion dollars. That is the total amount of e-commerce sales made in the US during the pandemic last year.
A recent report by the US Department of Commerce Retail Indicator Division revealed that e-commerce represented 13.2% of all US retail sales in 2021, with the fastest-growing categories being furniture, building materials and electronics. As the second-largest market for e-commerce in the world, the US has contributed to the global growth rate of 29% over the past year. According to Tiffany Jensen, Executive Vice President of the Americas at Parcel Perform, “The opportunity in the US market is tremendous, with revenue from retail e-commerce projected to surpass $1.3 trillion by 2025.”
With that said, how did the country’s state of e-commerce measure up in 2021? How has its cross-border logistics market evolved during this period? And lastly, how can retailers make the most out of this enormous opportunity in the region? Let’s take a look!
98% Of Parcels Were Successfully Delivered on First Attempt
Despite the pandemic-induced surge in e-commerce sales, 98% of parcels in the US were successfully delivered on the first attempt. When it comes to e-commerce retail, successful first-attempt deliveries are everything. On top of improving customer satisfaction (and thus, customer retention), it can also help businesses avoid additional costs such as rescheduled deliveries and extra manpower which are incurred in the event of a failed delivery.
One other interesting observation is that the delivery success rates on weekdays and weekends were roughly the same throughout the country. This could be a result of retailers adopting the contactless delivery model — a new norm in the post-COVID era’s last-mile logistics. Today, customers can easily opt for contactless deliveries, which allow delivery executives to place the parcel outside customers’ homes even when they are not home during the weekend.
Parcels in the US Had an Average Transit Time of 3.6 Days
Contrary to expectations, parcel delivery performance in the US did not see much improvement in the past year. This is more particularly so in terms of transit time, which refers to the interval taken for parcels to arrive at their destination, measured in days or hours. As a matter of fact, the average transit time deteriorated from 3.2 days in 2020 to 3.6 days in 2021. This increase in transit time despite the carriers’ concerted efforts to keep up with the e-commerce boom is likely due to the global container shortage experienced from July to September 2021.
With persistent supply chain issues rippling across industries, delivery delays tend to occur more frequently than anyone would like. In such situations, it is imperative that retailers focus on what they can control: staying in the good graces of their customers by informing them about the issue at hand. Given that the majority of negative online reviews are associated with long transit times and unprecedented shipping delays, e-commerce retailers should consider integrating powerful machine learning algorithms to help provide customers with the most accurate real-time updates. The key is to maintain consistent communication with shoppers throughout the delivery journey and ensure they know when their parcels arrive.
Most International Parcels Entering the US Originate from China, Canada, and Mexico
Cross-border sales, or the selling of products through e-commerce stores beyond national borders, have now become the new frontier of e-commerce. Rather than solely focusing on their domestic market, cross-border e-commerce allows retailers to expand their revenue and customer base. According to the leading research firm Valuates Reports, the global cross-border e-commerce market size is forecasted to reach USD 508700 million by 2027. As far as international parcels coming into the US are concerned, most of them originate from China, Mexico and Europe (UK, Russia, Poland). Meanwhile, the majority of packages leaving the US are headed toward Canada, Australia and the UK.
The Way Forward for US Retailers
The recent spike in consumer demand has highlighted that marketing opportunities are vital to fully leveraging the business’ full potential. Many often forget that the e-commerce journey also encompasses the delivery experience, one that could make or break a customer’s decision to repurchase. In this regard, Tiffany observed that whilst many US-based retail companies have displayed sophistication in the pre-purchase journey, i.e. in marketing their brand identity and creating personalized customer experiences, she found it surprising that few have prioritized optimizing the post-purchase e-commerce experience. In her view, “…there is a massive opportunity to leverage technology in the post-purchase journey to drive increased customer engagement, reduce customer service inquiries, and therefore differentiate brands from their competitors.”
Given that the market is becoming increasingly consumer-driven, e-commerce brands need to realign themselves to the behavioral changes and invest more in providing a superior post-purchase experience. With online retail giants like Amazon, Walmart, and eBay paving the way for new innovations and experiences in e-commerce, we look forward to how the state of e-commerce in the US will evolve in the post-pandemic year of 2022.
For more exclusive reports, insights, and interviews on the latest updates in e-commerce and logistics, follow us on LinkedIn or join our community as a member.
Also worth your time
Track your parcel here
Event Highlights
North America
Logistics & Supply Chain
Home Delivery World
Aug 31 - Sep 01, 2022 | Pennsylvania Convention Center, Philadelphia
Europe
Retail & E-Commerce
Paris Retail Week
Sep 20 - 22, 2022 | Paris Expo Porte de Versailles
Europe
Retail & E-Commerce
Savant eCommerce Copenhagen 2022
Sep 20 - 21, 2022 | Radisson Collection Royal Hotel
North America
Logistics & Supply Chain
Leaders in Logistics: North America 2022
Sep 26 - 27, 2022 | Marriott Crystal Gateway, Arlington VA
Europe
Retail & E-Commerce
eCommerce Expo UK 2022
Sep 28 - 29, 2022 | Excel London
More discoveries
Funding Roundup: Major Wins for CleverTap, Locad, ReturnLogic and Others
Aug 12, 2022
PR Newswire: Purolator Transforms Transportation Sector With Its New Sortation Facility in Toronto
Aug 12, 2022
Alcott Global Podcast: Carbon Neutrality in a Shipping Company
Aug 11, 2022
FreightWaves: FedEx to Apply Peak Season Surcharges As Early As September
Aug 11, 2022
E-Commerce Logistics Race in Latin America: Which Country Performed the Best in H1 2022?
Aug 10, 2022
The Business Times: A.P. Moller - Maersk Purchases Martin Bencher Group for US$61M
Aug 10, 2022
Funding Roundup: Bizongo, Homzmart, Vetted and Others Secured Early-Stage Deals
Aug 05, 2022
How Peak Season 2022 in Europe Might Look Like
Aug 05, 2022
TechCrunch: Shopify Invests $100 Million in a Marketing Automation Startup, Klaviyo
Aug 05, 2022
ITLN: Xpressbees Names Suraj Bangera as Senior Vice President of Cross-Border Business
Aug 04, 2022
Retail Dive: Amazon Launches Same-Day Shipping for Pacsun, GNC, SuperDry, and Diesel Customers
Aug 03, 2022
E-Commerce Logistics Race in Europe: Which Country Performed the Best in Q1 2022?
Aug 02, 2022
Supply Chain Dive: OnTrac and LaserShip Introduce Transcontinental Delivery Service to Prepare for Peak Season
Aug 02, 2022
Alcott Global Podcast: Importance of Supply Chain in Stationery Industry
Aug 01, 2022
Guest Post: 10 Ways Retailers Can Inspire Customers During Peak Season
Aug 01, 2022
Funding Roundup: Early Funding Rounds Secured by Cartona, DealCart and Others
Jul 29, 2022
Vogue: Glossier Launches into Wholesale Partnership with Sephora
Jul 29, 2022
E-Commerce Logistics Race 2022: Canada vs the United States
Jul 28, 2022
Macau Business: DHL Express Names Phil Corcoran as Australia’s Managing Director
Jul 28, 2022
Top E-Commerce Retailers in the United States 2022
Jul 27, 2022
Logistics Manager: InPost Now Has 4000 Parcel Lockers in the UK
Jul 27, 2022
Marketing Interactive: L'Oréal Appoints Kenny Ng as Regional E-Commerce Director
Jul 26, 2022
Guest Post: Why Logistics and Supply Chain Management Is Important
Jul 26, 2022
Guest Post: 7 Customer Retention Metrics That Allow You to Measure Customer Loyalty
Jul 25, 2022
Alcott Global Podcast: Revolutionizing Offshore Logistics
Jul 25, 2022