As the holidays draw near, both shoppers and shippers should prepare for a surge in packages – and theft that follows. Understanding these holiday shipping statistics may help you prepare as well.
Have you completed your holiday shopping yet?
Chances are, if you have, you’ve spent the majority of your budget online – and that means more than a quick click on “free 2-day shipping.”
Despite the simplicity of online services like Amazon, eBay, and Walmart, there’s much more that goes on behind the scenes.
A vast infrastructure of international material sourcing, manufacturing, assembly, packaging, shipping, warehousing, and, ultimately, final delivery, works largely behind the scenes to make sure your gifts arrive on time and to your liking – and the statistics behind these “simple” deliveries may shock you.
For example, the three largest delivery services in the United States (USPS, UPS, and FedEx), will deliver between 17-18 billion packages and mail pieces between Thanksgiving and New Year’s Eve in 2019. And, if you’re doing the math, that’s about 53 items per person in the United States.
Want more holiday shipping statistics? You’re in luck. Here are some notable (and eye-popping) holiday stats as we move into the 2019 shopping season:
1. The Majority of Holiday Shopping in 2019 Will Occur Online
It’s no wonder that convenient delivery services with minimal shipping costs have made online shopping a godsend for busy families on a budget. But until recently, retail shopping has dominated the holiday shopping season. Thanks to easier (and ever-growing) access to online retailers like Amazon and Walmart via smartphones and tablets, the traditional online shopping demographic has grown from millennials to their parents – and grandparents. Analysts have projected that nearly 60% of holiday shopping in 2019 will occur online, meaning you’ll be seeing a lot of UPS, USPS, and FedEx packages at your door.
2. Cyber Sales Will Continue to Grow
Black Friday and Cyber Monday are huge drivers of online shopping sales. Thanks to steep discounts and warehouse-clearing flash sales, it’s expected that Cyber Week will bring in well over last year’s record-setting $7.9 billion in sales for 2019.
3. Most Consumers Make Decisions Based on Shipping, Price, and Convenience
There are plenty of options at the fingertips of online shoppers, but there’s one factor that moves the needle on completing a purchase more than any other: shipping speed. 97% of consumers surveyed in a 2018 study said that speed of delivery is a major factor in their buying decision; 40% said it was the most important. Additionally, 46% of those surveyed said they expected even faster delivery from retailers this year, adding additional stress to delivery services and retail providers alike.Price is also a major factor. The average shopper plans to spend about $525 for 16 gifts throughout the holiday season, citing deals and rebates as a contributor to their buying decisions. And as a sign that convenience in finding these deals is a primary driver of online shopping, a rise in mobile app usage and advertisements on social media platforms over the last few years may point to the importance of easy access and instant gratification.
4. Package Theft is Likely to Increase During the Holiday Season
According to a recent study, it’s estimated that nearly 1 in 4 Americans have experienced package theft from their homes, with North Dakotans falling victim in far greater numbers than anywhere else in the country. And while over 70% of those surveyed think that utilizing modern home surveillance technologies like Nest or Ring can help ward off package theft, only one-third have such devices installed.
5. Carriers and Shippers Fall Victim to Theft at a Staggering Rate
Aside from small-volume thefts that happen at a person’s door, cargo carriers and shipping providers see an increase in high-volume cargo theft at an alarming rate during the holidays. High-value items such as food, liquor, clothing, electronics, and pharmaceuticals are among the most commonly targeted goods by organized criminals. While GPS monitoring and tracking tools are widely utilized throughout the delivery process, talented thieves have gone as far as forging paperwork, infiltrating computer tracking systems, impersonating drivers and operators, and disabling tracking devices in order to secure their bounty.States most susceptible to cargo theft include California, Texas, Florida, and Illinois. In a three month span during 2018, cargo theft reporting firms detected over 150 thefts with an average value of $160,000. Most reported thefts occurred in unsecured parking locations at truck stops or warehouses.
How to Protect Your Company Against Cargo Theft
In the event your cargo is stolen, lost, or damaged in transit, it’s important to secure your assets with marine cargo insurance to help mitigate the cost. From water damage to theft and even the cost to destroy damaged goods, marine insurance will help protect your overall investment. Be sure to check with your current marine insurance provider or reach out to TRG to learn more about our premium marine insurance options.