uShip, the logistics technology platform for large and bulky goods, today released its “2020 SMB Shipping Strategies Report,” which highlights the growing importance of shipping and logistics in the SMB sector. Results show nearly half (47%) of small to mid-sized business decision makers who have involvement or influence in distribution/logistics and/or procurement/purchasing estimate an increase to their shipping spend in 2020 compared to 2019.
The study, conducted online with third-party research firm YouGov, also revealed SMB shipping spend is being influenced by big-box retailers. In fact, 25% SMB decision makers said the logistics strategies of Amazon and Walmart are influencing how their SMB thinks about shipping, while 27% said those strategies are influencing how their customers think about shipping.
The full report is available on uShip.com.
Investment Priority: Team vs. Technology
The top-down pressure from big-box players is creating an underlying tension within the mid-market, which includes companies that likely don’t have the same infrastructure and resources to support aggressive logistics strategies.
As a result, the debate for SMBs boils down to where they invest resources towards logistics: teams or technology? The study finds 1 in 5 (20%) of SMB decision makers would rather invest in the right logistics team over technology, while nearly 1 in 3 (30%) plan to make new technology a priority.
Meanwhile, 1 in 7 (14%) SMB decision makers say investing in new technology is too expensive, while 1 in 6 (17%) prefer to invest in alternatives to traditional shipping options such as UPS, FedEx, XPO Logistics, and freight brokers.
“The decisions of small and mid-sized business owners are being heavily influenced by the rise of big-box retailers like Amazon,” said Kris Lamb, CEO of uShip. “So, SMBs are beginning to rethink how they invest their shipping and logistics dollars. Our hope is that these insights convey the pressure being felt across the industry and inspire SMBs to find new ways to incorporate supply chain and logistics strategies into their businesses.”
Large and Bulky Struggle
While parcel shipping remains a fairly well-oiled machine for many businesses, shipping large and bulky e-commerce — furniture, vehicles, sporting equipment, safes, and more — remains a mystery to many. And when they have oversized or fragile items to deliver, many don’t find service reliable or affordable. Among SMB decision makers, the survey finds:
- 17% don’t trust fragile items to arrive safely or unbroken
- 15% can’t find a reliable carrier to ship oversized and bulky items
- 12% can’t find an affordable shipping solution
- 11% don’t know where to find alternative shipping options to organizations like UPS, XPO Logistics, and freight brokers.
With the logistics industry moving quickly in favor of the strategies driven by big-box retailers, SMB shippers need new ways to compete and address some of the above pain points, especially when it comes to big and bulky. It’s important for owners of small and mid-sized retailers to wisely evaluate all their options for investing in the coming year and make informed decisions when searching for new shipping and supply chain strategies or partners.
About uShip:
uShip makes it quick, easy, and affordable to ship large or bulky items. From cars to cranes and furniture to freight, our straightforward and transparent platform helps people, businesses, e-commerce sellers, and multinational logistics companies ship with greater speed and efficiency. Launched in 2004, uShip is based in Austin, Texas. Find out more at uship.com, facebook.com/uship or on Twitter at @uship.
About the Survey:
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 502 Small and Medium Business Decision Makers. Fieldwork was undertaken between Nov. 22 – Dec. 4, 2019. The survey was carried out online. The figures have been weighted and are representative of all US Small and Medium Business Decision Makers.
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