Online Purchases a Winter Wonderland for Shippers

With December just around the corner, early shoppers have already begun looking for great sales, hard-to-find items, and decorative holiday gear to get ready for the big day. Taking to streets to battle crowded stores is becoming less of an issue these days as more people search for items on their shopping list online.

Modern technology, such as smart phones and tablet PCs, have made the process of gift-buying easier and more accessible than ever. It’s expected that online shoppers will spend nearly $55 billion on purchases made on their Internet-accessible devices this season. That’s almost a quarter of all sales in the United States during the holiday crunch time, and close to $8 billion more than the same period last year.

The Postal Service expects to ship 15.2 billion cards, letters and packages between Thanksgiving and Christmas Eve. A good portion of that volume consists of Internet purchases. With a sustained climb in Internet sales predicted for the foreseeable future, the resulting increase in demand for package delivery services will continue to be a great growth opportunity for shippers. That increase in demand will entice new competitors to enter the market and stake a claim for their own share of the lucrative business.

We’ve already seen companies such as, Wal-Mart, and eBay looking to take advantage of this trend by starting their own package services. It may not be long before other companies seek to enter this growing industry as well.

What other businesses to you think will attempt to enter the shipping industry?

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