5 Billion cross border e-commerce shipments per year means it's time to wake up.
Updated: Oct 16, 2019
Maggie from our team here at Splitcha pointed me to this astounding excerpt from the recent E-Commerce session at the WCS 2019 conference.
E-commerce is a “gift from heaven” for the air cargo sector but it faces several challenges if the industry is to capitalise on the opportunity it presents, according to speakers at the World Cargo Symposium.
Ludwig Hausmann, partner at McKinsey & Company, said that e-commerce had grown at a year-on-year rate of up to 20% over the last 15 years. Growth is expected to continue at 10-15% over the next five to 10 years.
Cross border e-commerce, which is expected to present the biggest opportunity to air cargo, is expected to grow even faster than the overall online sales market over the coming years – growing by as much as 25% each year.
Hausmann said the cross border “click-to-door” e-commerce market currently stands at 5bn shipments annually and is estimated to account for around 10% of total air cargo volumes. This is expected to grow to 20% by 2022, he added.
Now that is astounding. We knew that demand for a marketplace like Splitcha was high when you take into account the convenience benefits alone. That is, the time and cost savings of sending gifts, care packages and essentials abroad. Or indeed getting them abroad when you are. We also realised the positive environmental impact we could have if we were to facilitate the reduction of carbon emissions by removing the need for air freight with respect to an international e-commerce transaction.
But the figures above continue to astound us.
So here we are, weeks away from launch and we put it to you. Why ship products abroad when you can source them locally and cut it all out? Aside from the feel good factor of saving time and money via a community, you can also get a warm glow from doing your bit to confound the analysts at the air cargo conference.