Holiday Deliveries in the US are Falling Behind as Demand Soars

gift holidays

Delivery companies are struggling after an explosive Cyber Monday, which saw sales soar a whooping 17% over last year, to an estimated $6.6 billion in online sales, making it the biggest online shopping day in US history.

This record-breaking surge in online shopping is now leading to significant delivery delays across the US. A pilot for Atlas Air Worldwide Holdings, told The Washington Post that Amazon is already experiencing delays which are expecting to get worse in the next two weeks leading up to Christmas.

UPS released a warning last week that some deliveries would be delayed by one or two days, and that their staff has been putting in extra hours to manage the workload. UPS expects its holiday load to rise by about 5% to 750 million packages, while FedEx says it’s planning for up to 400 million parcels.

The number of late deliveries typically doubles during the holidays, according to data from LateShipment.com, a startup that tracks shipment delays. Some retailers, including Walmart and Sears, have come to expect this type of issue around the holiday season and are taking action by encouraging shoppers to buy online and pick up in the store.

This situation is a great reminder of the increasing importance of delivery in shopper’s lives. With demand set to grow in the future, it’s time for retailers, cities and delivery companies to prepare for a future in which deliveries, speed and convenience become just as important as the product itself.

Raanan Cohen

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