As the holiday shopping season arises, online retailers aren’t the only ones expected to have sales increases. The companies that will be performing the actual deliveries will have a hike in sales as well. UPS has its’ package numbers forecasted to go up this year.
Internet Retailer reported between Thanksgiving and December 31, UPS is projected to top 700 million, which would be a 16.7% jump compared to about 600 million in 2015. “The dramatic growth of online shopping and subsequent returns is expected to lift UPS package levels to a record high during this upcoming holiday period,” Kathleen Gutmann, senior vice president of worldwide sales and solutions, said during a call on UPS’s third quarter earnings. “Between Thanksgiving and New Year’s Eve 2016, there are two additional operating days and we expect to complete over 700 million deliveries worldwide, about 100 million more than last year.”
Some other numbers has given an indicator to how the sales are about to rise. For the third quarter ending September 30, UPS stated that U.S. average daily package volume increased 5.7% to 15.364 million packages from 14.540 million during the same time last year. International package volume also went up by 7.5% to 2.788 million from 2.593 million year after year.
The article also discussed the UPS My Choice program, which will be used to help manage holiday volume surges. The program allows consumers who sign up to choose the delivery location of their package, whether to their home or an alternate delivery site, including a UPS Access Point location. This program currently has 30 million members worldwide, compared with 20 million a year ago. It has about 8,000 Access Point locations in the US, including UPS stores, Access Point “smart” lockers, in addition to sites like convenience stores and dry cleaners.
Chief financial officer Richard Peretz said regarding UPS business-to-business sales, “It’s the best growth we’ve had there in five quarters. Returns growth in e-commerce is also very strong. It’s growing in the mid-teens.” Despite lower industrial production, business-to-business grew roughly 2% primarily due to online retail returns, which is another aspect of delivery that has caused it to be even more vital in today’s business climate to be successful. This is even true with Same-Day Delivery, as online shoppers have returns that are being made more now than ever from physical stores.
Traditional warehousing isn’t enough to keep up with the pace of e-commerce. Technology has enabled customers to shop online quickly and want their purchases just as fast. The retailer that can meet the shoppers shipping demand will be the one that gains and keeps loyal customers long-term. This is why a viable option for retailers is to partner with a Same-Day Courier like AQuickDelivery to pick up and deliver items from store locations in no time. The Atlanta Courier can be there for fast deliveries when UPS can’t be there for you.
Reference: 10.27.16, Internet Retailer, Tracy Maple, UPS expects holiday package volume to grow more than 16%