E-Commerce Logistics Race 2024: United States vs. United Kingdom
With estimated values of$925 billion and $280 billion respectively, the United States and the United Kingdom are among the biggest and most sophisticated e-commerce markets globally.
Both nations benefit from well-developed transportation infrastructures, cultures that support e-commerce, and high levels of internet penetration and usage. Consequently, they have nurtured several of the world’s leading e-commerce and logistics companies, including Amazon and FedEx from the U.S., and DPD and Ocado from the UK.
As part of our "E-Commerce Logistics Race" series, this article compares the performance of the e-commerce and logistics industries in the United States and the United Kingdom, focusing on key delivery performance metrics from the first quarter of 2024. An examination of these statistics reveals interesting trends, offering insights into the current state of e-commerce in these nations. ⬇️
United Kingdom Had a Faster Transit Time of 1.23 Days in Q1 2024
In Q1 2024, the United Kingdom demonstrated a superior performance in domestic transit times for e-commerce deliveries, averaging 1.23 days compared to the United States' 2.32 days. This statistic is crucial in the logistics sector, where the speed of delivery can significantly impact customer satisfaction and retention. Fast deliveries prevent customer dissatisfaction and order cancellations, underscoring the importance of efficient transport systems.
The UK benefits from a well-developed internal transport infrastructure, including an efficient network of rail, road, and underground systems, which facilitates quick and cost-effective logistics operations across its relatively small area of 243,613 square miles. In contrast, the US faces unique logistical challenges due to its vast landmass of 3.8 million square miles. The scale of the country means that logistics companies must manage longer distances and varied terrain. For example, driving across Texas alone takes approximately 14 hours—four hours longer than driving from the north to the south of England.
Additionally, the US population is five times larger than that of the UK, which can lead to more congestion on transport routes, further complicating logistics operations. In the UK, the smaller landmass and population density contribute to more frequent use of rail transport and generally lower transportation costs, enhancing logistics efficiency. These factors collectively explain the faster transit times observed in the UK's e-commerce deliveries during the period in question.
➡ Explore the markets with top transit times around the world in 2023 ⬅
Both Countries Experienced an Impressive On-Time Delivery Rate of 98.8%
Both the United States and the United Kingdom achieved an on-time delivery rate of 98.8%, ranking them among the global leaders in this performance metric.
In today's market, consumers expect timely delivery of critical items, including medical supplies, and food and beverages. To meet these expectations, leading e-commerce and logistics companies in both the US and the UK are at the forefront in developing these innovative solutions to ensure punctuality in deliveries.
UPS, for instance, leverages predictive analytics to enhance delivery efficiency and ensure punctuality, demonstrating a commitment to maintaining high standards in logistics performance. In the realm of warehouse operations, firms such as Ocado are integrating robotic automation to streamline product packing and processing.
➡ Learn from top e-commerce retailers in Europe and the U.S. ⬅
United States Saw a Higher First-Attempt Delivery Success Ratio of 98.1%
In the world of logistics, time is money. And what better way to save time than high first-attempt delivery rates? If more customers receive their orders at first attempt, logistics companies are spared the trouble of potentially making second trips. In Q1 2024, the U.S.recorded a first-attempt delivery ratio of 98.1%, higher than the UK's record of 95.1%.
Several factors could possibly explain this trend. First, the U.S. logistics companies have established effective networks of pickup locations around their country making it easy for customers to direct their orders to these locations and then pick up said orders at their convenience. For example, Amazon, one if the US’ biggest e-commerce companies has established pickup locations in over 900 cities and towns across the country.
Moreover, this reveals the success of the innovative measures utilized by US logistics and e-commerce companies to avoid delays and boost first-attempt delivery success. These measures include advanced order tracking systems to boost visibility and ensure that customers can follow the movement of their parcels in real time as well as optimized route planning to enable delivery personnel to avoid traffic congestions and other obstacles to quick and timely deliveries.
A Greater Percentage of Parcels in the United Kingdom Encountered Delivery Issues
While delivery attempt failures are often the result of poor transport infrastructure or customer absenteeism, logistics companies are also often guilty of these failures. Both countries had generally low delivery issue rates, with the UK having a 4.97% rate and the US recording a 5.97% rate.
Having said that, in the U.S., about 77% of delivery failures stemmed from the carrier’s end, compared to 22.1% for the same metric in the UK. While US logistics companies have largely thrived in recent times, many of them are facing several difficulties from issues such as inflation with prices in the US increasing by 3.5% in March 2024 compared to March 2023, rising diesel costs with gasoline costing 1% more than it did last year by May 2024 as well as generally lower rate. These challenges have negatively affected US logistics companies' capacities, making it more difficult for then to effectively carry out their operations.
➡ Gain access to more of such exclusive carriers' performance data ⬅
Who Was the Ultimate Winner In This Race?
Today, the e-commerce and logistics industries of the UK and US remain among the most advanced in the world, benefiting from world-class transportation infrastructures and innovative e-commerce strategies. Both countries have achieved excellent scores across various performance indices.
However, the smaller size of the UK provides it with an advantage in transit times, while the US, with its extensive and effective use of collection points, achieves a higher first-attempt delivery success rate. As both nations continue to advance their logistics capabilities through innovation and strategic planning, it will be fascinating to observe their ongoing competition in this dynamic industry.
