As eCommerce continues to grow, other industries are also preparing for the big growth that’s comes with it. Service companies such as service deliveries are one of those that are preparing for this, as it’s anticipated that more people will be ordering online.
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One of those delivery companies anticipating this growth is FedEx. The company is set to open one of its largest facilities in Shanghai, China. This is in anticipation of growth in eCommerce not only in China, but around the world.
FedEx Global Growth
The growth of air cargo in China has risen as there are more demands for cross-border trading. This is in part due to the growth of online retailers.
More people are ordering online, which has driven more transactions. This will not likely slow down, as China’s air cargo volume is expected to increase to 6.2% in 2018.
“With the wealth of Chinese consumers, and the worldliness of Chinese consumers, they’re going to demand goods from the U.S. and Europe and parts all over the world,” David Cunningham, CEO of FedEx.
The new hub will be huge at a size of 134,000 square meters. This is to facilitate many goods and packages that are expected to come as more people shop and order online. Not only is it FedEx that is interested in the Chinese market.
Competitor United Parcel Service (UPS) is setting up a partnership with Chinese delivery company SF Holding Co.
This growth in eCommerce is helping then not only online retailers, but service providers that are connected to it as well. Delivery companies stand to benefit from all the traffic that is being generated by online shoppers worldwide.
Demand as well as more online retailers coming out will only see eCommerce continuing to grow this 2018 and beyond.
What other service providers might stand to benefit from this eCommerce growth? Post in the comment section below.
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