Alternative shipping methods offer attractive options for e-commerce

The e-commerce landscape in the United States is constantly evolving, requiring retailers to be agile and adaptable to maintain a competitive edge. The latest data from Statista predicts that e-commerce revenue will reach $1.2 trillion in 2024, up +14.8% from the previous year. This significant growth means that e-commerce companies could face increased competition for space with major freight forwarders.

In addition, rising consumer expectations for fast, reliable deliveries are putting additional pressure on e-commerce companies to find new solutions. To meet these demands, companies are expanding their logistics strategies, leveraging an extensive network of delivery carriers and strategically leveraging unique small-package delivery options. By diversifying shipping options, companies can reduce risk and lower costs.

As e-commerce sales grow, you might expect small-package shipments to grow as well. A recent forecast by Pitney Bowes’ Shipping Index predicts that U.S. shipment volume is expected to reach 23 billion units by 2025 and 35 billion packages per year by 2029. The report also notes that four carriers handle the majority of these shipments, with the two largest carriers dominating last-mile deliveries for small packages. However, this dominance can also come with the risk of delays or service disruptions.

To increase reliability, reduce costs, and improve scalability, e-commerce companies should consider diversifying their networks rather than relying on one or two major parcel carriers. Traditional parcel carriers often impose various surcharges and additional fees, such as residential surcharges, oversize package fees, and fees for deliveries to remote locations or outside their main network. As such, overreliance on one traditional carrier can lead to higher costs due to these additional fees. By incorporating alternative delivery carriers into their mix, companies can be better positioned to mitigate these costs.

Small Airplane Shipment Options to Skip Zones

Alternative delivery networks may include regional carriers, freight forwarders, courier companies and other specialist carriers.

When evaluating small package delivery options, the two options for the middle mile segment of travel are freight forwarders and alternative parcel carriers. The first option is to use a freight forwarder that relies on partnerships and agreements with airlines to deliver small packages to customers’ doors.

The second option is to use the medium-haul delivery services of an alternative small package carrier, such as Delta Cargo’s DeliverDirect solution. DeliverDirect is Delta Cargo’s end-to-end small package transportation service. From initial warehouse pickup to middle-middle transportation utilizing existing space in the belly of Delta Air Lines passenger aircraft, all the way to the end customer’s doorstep, DeliverDirect provides a complete door-to-door delivery service for the U.S. market.

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The primary advantage of using passenger airlines for e-commerce is the speed of delivery. Passenger airlines have a large and frequent network, covering major cities and regions around the world. This wide reach allows for the rapid shipping of e-commerce products to a wide range of destinations. For companies, especially those dealing with time-sensitive goods, this means the ability to deliver products to customers at an unprecedented rate.

Alternative Supply Chains: More Speed ​​for Less Cost

One of the key features offered by alternative carrier Delta Cargo’s DeliverDirect solution is zone skipping.

Bypassing zones reduces transit time and costs by bypassing the intermediate shipping zones commonly used by many large U.S. carriers. With traditional carriers, package shipments are initially consolidated based on their regional destination. Once they reach a hub, they must be transferred to a spoke before reaching their final destination. This process adds complexity and can increase costs for shippers in larger zones.

Alternative carrier solutions, such as Delta Cargo’s DeliverDirect, bypass traditional shipping zones by using space on Delta’s passenger aircraft to ship directly to target regions before delivering to the customer’s final destination. This more direct shipping method avoids traditional surcharges often associated with traditional ground carriers that use zone-based pricing structures.

DeliverDirect’s solution provides access to Delta’s 2,500+ daily domestic flights, eliminating the need for regional zones and significantly reducing warehouse and distribution center costs. By minimizing infrastructure requirements and optimizing logistics, DeliverDirect offers a compelling alternative for companies looking to improve their bottom line and increase customer satisfaction.

Think outside the box

As the U.S. e-commerce market continues to evolve, reconsidering traditional delivery methods is becoming critical to staying competitive in a changing consumer landscape.

Higher costs can pose a significant challenge for e-commerce retailers that rely on traditional, mainstream parcel carriers. Augmenting the networks of existing delivery carriers with alternative delivery networks can be an attractive option for these e-commerce retailers, especially on routes beyond the reach of traditional ground parcel carriers. Alternative delivery carriers such as Delta Cargo, through its DeliverDirect solution, also offer the distinct advantage of utilizing existing space on passenger aircraft for mid-haul deliveries, in addition to partnering with traditional ground parcel carriers for first- and last-mile services.

By diversifying their carriers and delivery networks, e-commerce companies can remain competitive in fulfillment and delivery logistics.

Optimize your logistics strategy, reduce expenses, and increase customer satisfaction by partnering with Delta Cargo DeliverDirect.

To learn more, visit deliverdirect.com.

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