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Now’s the Time – Beat the Pre-Holiday Season Bustle!

It’s already October, which means it is the optimum time for retail and wholesale businesses to have their orders in for the 2023 year-end holiday sales season. Advance planning for third-party logistics support for shipping and handling of your valuable holiday-season goods is critical. So, it would be well advised to not wait for the usual hustle and bustle of November.

As a third-party logistics provider, Prime Logistics has experienced staff and experts on the ground in multiple cities and countries across the globe. They’re eager to collaborate with customers and develop a customized, timely, cost-effective, and successful supply chain journey for those valuable holiday season goods. The good news is that supply chain issues have eased somewhat, and there are also positive developments for ocean freight and truck transport capacity.

But at such a busy time of the year, delays can happen unexpectedly in the transport arena. So, it would be best for businesses with a close eye on their bottom line and a desire for high holiday season sales begin planning now. In addition, the supply chain timeline has also shifted, given the boom in e-commerce. Yes, many consumers still head for retail shops, outlets, department stores, and shopping malls to do their holiday shopping. But others conveniently shop at home on a laptop, tablet, or smart phone.

Pressure to “Deliver the Goods” Quickly

With an online sale just a click or two away for consumers, the delivery timeline has also shortened in many cases. Consumers increasingly opt for one- or two-day delivery, so logistics companies, retailers, wholesalers, and shippers have increased pressure to “deliver the goods” quickly. Not surprisingly, the popularity of air freight has soared over the past few years. In turn, air freight capacity has tightened.

Amazon, which Forbes Advisor says accounts for 37.8 percent of e-commerce sales, the highest of all e-commerce companies, has even acquired its own freighter planes. For example, in 2021, it purchased 11 jet aircraft from WestJet and Delta, and those began Amazon Air cargo service in 2022. Fortunately, Prime Group has many long-standing airline and air freight partnerships, a big plus for its own customers. But again, the rise in air freight demand is one reason to start early with holiday sales season planning.

Just How Robust is e-Commerce This Year?

According to the Census Bureau of the U.S. Department of Commerce, the estimated U.S. retail e-commerce sales for first quarter 2023, adjusted for seasonal variation, were $272.6 billion, a 3 percent increase from 2022’s busy fourth quarter. Total retail sales for the first quarter of 2023 were estimated at $1,799.5 billion, up .0.9 percent from fourth quarter 2022.

In fact, the Census Bureau reported that e-commerce sales in the first quarter of 2023 represented 15.1 percent of total sales. Certainly, e-commerce makes the buying process easy, as consumers just click through page after page online, rather than transiting to different floors or individual departments within a brick-and-mortar store.

“Journey to Market” Plan is Ever More Important

As delivery timelines have accelerated, many businesses have shifted to single warehouse locations, rather than multiple warehouse facilities. Freight forwarders also have shifted their fleet composition, using many small trucks and trailers for “last mile” deliveries. While e-commerce can reduce a businesses’ costs in supply production and distribution, potentially leading to higher profits, the reality is that the “journey to market” plan has become even more important than in the past.

A recent article in Forbes Advisor projects that the U.S. e-commerce market will continue to expand. It’s expected to reach more than $1.1 trillion in sales in 2023. By 2026, the e-commerce market may reach more than $8.1 trillion, with more than 24 percent of all retail purchases made online. E-commerce has also created more cross-border trade and border challenges for businesses. The good news is that Prime Logistics is skilled at navigating complex customs rules and regulations; maintaining visibility for cross-border shipments; and streamlining the clearance process.

Looking to the 2023 holiday shopping season, businesses and consumers alike will discover a new world when it comes to shipping, handling, and logistics. Fortunately, Prime Logistics has invested in innovative shipment services and solutions to keep customer goods flowing. With an eye toward on-time deliveries in a cost-effective manner, the time is now for both existing and new customers to plan their holiday season shipping.

About Prime Logistics Group

One of four divisions of Prime Group, an international logistics services conglomerate founded in Ecuador in 2001, Prime Logistics Group serves to streamline, optimize, and expedite freight to and from the U.S. for a wide range of major industries.

With offices in Miami, New York, Los Angeles, Bogota, Quito, and Amsterdam, Prime Logistics capitalizes on its long-time relationships with the major air carriers and ocean lines to offer competitive rates in securing ample space to destinations all around the world.

For information, call 305-592-2044 or visit www.PrimeLogisticsGroup.com.

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