Delta Variant Impacts Holiday Shopping and Shipping Season

Just as consumers were beginning to go back to some pre-covid, in-store shopping, the Delta variant may have dampened some of that and might be sending more of them back online to purchase goods. What does that mean in the short- and near-term for eCommerce and retail logistics?

During the initial COVID wave, online retail saw a dramatic jump. According to the U.S. Census Bureau, online retail in the U.S. grew 32 percent year-over-year to $791.7 billion in 2020. However, while still going strong through the first half of 2021, eCommerce slowed as shoppers returned to brick-and-mortar retail as vaccines became available and COVID lifted restrictions in most states. That, though, might be reversing as the Delta variant pushes back, with other variants expected to emerge.

And, the concern over the Delta variant is influencing consumer sentiment.

In the face of the recent surge, many consumers are rethinking their quick reversion to pre-pandemic life as 20 percent of people surveyed by Numerator research said they are “highly optimistic” about a return to normal, down from about 33 percent at the start of the summer.

While most Americans are still visiting retail stores at the same rate as a month ago, the Delta variant concern does have some questioning whether they will continue to do so in the future.

A study from the shopping rewards app, Shopkick showed that 47 percent of “concerned shoppers” are worried about shopping in a physical store as the COVID-19 Delta variant continues to spread. However, at this point, shoppers are still visiting stores. According to the study, 67 percent report taking the same number of trips to the store per week as they did last month, and 10 percent have found themselves going more often.

This uncertainty concerning the Delta variant combined with ongoing trends will impact online sales this holiday season. Some eschew shopping in-person to avoid exposure—and others do it for the convenience of shopping in slippers.

EMarketer forecasts that 2021 holiday retail sales in the U.S will expand by 2.7 percent, resulting in a whopping $1.093 billion in sales value.

Combined with an ongoing supply chain logjam, the boost in eCommerce is bound to snarl an already strained supply chain. This is expected to trickle down to impact last-mile delivery with carriers at or near record capacity and shippers paying for it in surcharges.

Some projections have placed last-mile volume at 5 million pieces above capacity for the 2021 holiday season, meaning retailers will have to pack efficiently and manage their carriers to keep costs in line and the holidays profitable.

In all, the 2021 peak shipping season will be challenging for retail and eCommerce. However, with proper planning and managing of it with a multi-carrier management solution, it can still be a profitable and happy holiday season.

Just as consumers were beginning to go back to some pre-covid, in-store shopping, the Delta variant may have dampened some of that and may be sending more of them back online to purchase goods. What does that mean in the short- and near-term for eCommerce and retail logistics?

During the initial COVID wave, online retail saw a dramatic jump. According to the U.S. Census Bureau, online retail in the U.S. grew 32 percent year-over-year to $791.7 billion in 2020. However, while still going strong through the first half of 2021, eCommerce slowed as shoppers returned to brick-and-mortar retail as vaccines became available and COVID restrictions were lifted in most states. That, though, might be reversing as the Delta variant pushes back, with other variants expected to emerge.

And, the concern over the Delta variant is influencing consumer sentiment.

In the face of the recent surge, many consumers are rethinking their quick reversion to pre-pandemic life as 20 percent of people surveyed by Numerator research said they are “highly optimistic” about a return to normal, down from about 33 percent at the start of the summer.

While most Americans are still visiting retail stores at the same rate as a month ago, the Delta variant concern does have some questioning whether they will continue to do so in the future.

A study from the shopping rewards app, Shopkick showed that 47 percent of “concerned shoppers” are worried about shopping in a physical store as the COVID-19 Delta variant continues to spread. However, at this point, shoppers are still visiting stores. According to the study, 67 percent report taking the same number of trips to the store per week as they did last month, and 10 percent have found themselves going more often.

This uncertainty concerning the Delta variant combined with ongoing trends will impact online sales this holiday season as some eschew shopping in-person to avoid exposure—and others do it for the convenience of shopping in slippers.

EMarketer forecasts that 2021 holiday retail sales in the U.S will expand by 2.7 percent, resulting in a whopping $1.093 billion in sales value.

Combined with an ongoing supply chain logjam, the boost in eCommerce is bound to snarl an already strained supply chain. This is expected to trickle down to impact last-mile delivery with carriers at or near record capacity and shippers paying for it in surcharges.

Some projections have placed last-mile volume at 5 million pieces above capacity for the 2021 holiday season, meaning retailers will have to pack efficiently and manage their carriers to keep costs in line and the holidays profitable.

In all, the 2021 peak shipping season will be challenging for retail and eCommerce. However, with proper planning and managing of it with a multi-carrier management solution, it can still be a profitable and happy holiday season.