2022 Shipping Trends: Navigating Small Business Needs

Small Business Shipping Trends in 2022

Posted on:
Feb 28, 2022

Ever since the coronavirus pandemic hit in 2020, consumers worldwide have relied on e-commerce as the safest and most convenient way to get their products. Two years in, online orders continue to soar, and small businesses are overwhelmed as they try to keep up with demand and delivery volumes.

Since customer satisfaction is tied to the delivery experience, small businesses must find innovative ways to improve customer service with the latest trends. In this article, we’ll get into the small business shipping trends in 2022. We’ll also discuss some of the key small business shipping trends to watch out for this year.

Small business market outlook

Businesses were hard hit between 2020 to 2021 with unexpected growth patterns in the supply chain and shipping. Industry analysts expect worldwide retail and e-commerce spending to reach stability in 2022. The US e-commerce market grew by 14.2% in 2021. In 2022, worldwide e-commerce sales are expected to exceed $5 trillion, a fifth of overall retail sales. Our critical outlook for small business shipping trends in 2022 will give you an idea of what to expect.

Digital Economy Boom

As mentioned, e-commerce deliveries boomed in 2020. As more consumers are comfortable with online shopping, the digital economy is continually increasing across industries. In 2022, the demand for delivery will stay the same due to the rising digital economy.

Like in 2021, more small business owners are willing to start or purchase independent businesses. The number of new franchises has doubled year over year, proof of the popularity of this business model.

The bulk of new small businesses includes food and restaurant services, retail, e-commerce, health, beauty, fitness, finance, and insurance.

Supply Chain Challenges

Though we’re two years into the pandemic, supply chain constraints will continue to be a problem with the emergence of new variants. While prices will stabilize eventually, industry analysts don’t see this happening until 2023. Capacity-constrained markets will continue to be pressured by inflation and equipment disruptions.

With this, small businesses should contact multiple suppliers for key components ad materials. It’s also recommended that businesses increase their stocks and inventories of top-selling items in anticipation of shortages.

Small business shipping trends of 2022

For my small businesses, following the latest business trends advocated by major corporations may not be the fitting path to take. As most small businesses have limited financial resources, it’s best that you review which shipping trends will go best with your customers’ needs and your long-term business goals.

It’s important for e-commerce and small business owners to incorporate flexibility, technology, and customer preferences into their shipping strategies:

Delivery Windows

To improve customer delivery service, shoppers want businesses to offer specified time slots for deliveries. Almost 40% of customers are willing to pay a premium to request delivery windows.

Tracking information goes hand in hand with delivery windows. With the improvement of courier tracking technology, customers will see the exact location of their package. They will also get an estimated delivery date. Businesses can partner with on-demand delivery services for greater control of localized deliveries. These services will allow customers to specify the exact time and date when their package will arrive.

Free Shipping

As more consumers resort to online shopping, businesses are can be ready to provide free shipping options to their customers. According to a survey, most shoppers prioritize free shipping over expedited shipping.

Small businesses should look for strategies to cover free shipping costs to avoid shopping cart abandonment. Some options include:

  • Increasing product prices will allow the customer to cover (partial or entirety) shipping rates.
  • Offering a minimum order amount will help your business increase the average order size per customer to offset shipping costs.

Improved Customer Support

Customer experience will improve with more flexible shipping options. To improve customer satisfaction and avoid shopping cart abandonment, small businesses should offer additional delivery options, including expedited, overnight, local pick-up, same-day shipping, and carrier options. Allowing customers to have various shipping options will likely improve customer satisfaction and repeat orders for your business.

Smart Delivery and Drone Deliveries

As delivery volume increases, the value of smart delivery and automated shipping options also rises. Businesses are also increasing funds for autonomous vehicles and drones. Major companies such as Google and Amazon have already invested in drone deliveries.

While there are still limits on policies and regulations on self-driving and automatic delivery methods, small business owners hoping to scale their brand should track the development of these types of deliveries.

E-commerce Data Analytics

With improvements in data analytics, small businesses now have more access to tools and technologies that allow the analysis of pertinent shipping and marketing information. Predictive analysis tools will help you to track and analyze web traffic, pricing histories, shipping destinations, and parcel transit. Access to this information will help businesses make informed decisions that will improve customer experience.

For example, knowing the most common shipping destinations will allow businesses to decide the best location for their warehouse. Business owners will also find out how to improve delivery with information on time in transit and forecasted shipping rates.

Successful small business shipping strategies in 2022

This 2022, the digital economy will continue to grow, leading to increased delivery volumes and possible supply constraints.

With this, the rising popularity of digital economies has encouraged more people to consider small business opportunities. However, with the tight competition within various e-commerce industries, small businesses need to look for creative ways to keep customers happy despite supply chain and shipping constraints.

Finding reliable and affordable shipping trends to adopt is critical for every small business, including:

  • Free shipping
  • Delivery windows
  • Automated and smart deliveries
  • Flexible shipping options
  • E-commerce data analytics

The key is to think about customer experience when looking into effective shipping strategies for your business. Improved customer satisfaction will improve as you look into your target market’s specific needs and preferences. On top of that, make sure that you align your business model and shipping strategies with your long-term business goals.

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