Retail is booming, led by the continued and seemingly unstoppable rise in customer demand for e-commerce. In the second quarter of 2023, the U.S. Census Bureau tagged retail sales at $277.6 billion, an increase of 2.1% from the prior quarter and a 7.5% rise from the same period in 2022. Despite uncertainty from global strife and economic headwinds, there’s no reason that number would begin to decline anytime soon.

With growth comes opportunity. This is especially true for airlines with dedicated and belly cargo offerings looking to diversify services by tapping into the B2C e-commerce parcel market. 

The International Air Transport Association has long said that air cargo ships 35% of the world’s trade value, so it’s clear that a continued increase in retail demand will translate directly to an increase in airfreight. Parcel shippers and integrators have historically seen the bulk of the small package activity from online commerce due to their vast experience in the arena. But with so much demand for cargo shipping, the market has reached a point where enterprising airlines can take back some parcel market share.  

Nearly all of this air cargo e-commerce activity originates in China, routing to North America and Europe, where consumers are nearly ceaseless in their demand for e-commerce products, but the boom is also moving south. Manufacturers in Latin America are looking to fully develop the B2C e-commerce model, so there’s a need for air cargo support in the region to help establish a seamless online retail experience. The e-commerce trend is truly worldwide; air cargo capacity is a crucial component in its continued growth.

While the need for retail shipping has increased, end consumers have also gotten more demanding, putting even more pressure on shippers and manufacturers to have seamless, optimized shipping processes. It’s been clear for some time that shipping is not only a significant factor in a customers’ initial buying decision, but a rewarding shipping experience engenders customer goodwill and retention. To match these demands, shippers need intuitive e-commerce shipping experiences from airlines that make it easy for them to win new customers and increase customer happiness.

The B2C e-commerce model isn’t a passing fad. E-commerce growth will rise for years to come; some think e-commerce is on track for double-digit growth through the end of the decade. The time to tap into that activity is now.

To create an unrivaled air cargo e-commerce experience that unites manufacturers with consumers takes industry-leading technology. The process has to be frictionless and intuitive. And the technology has to stand up to scrutiny. In the past five years, a wealth of supply chain and shipping technologies proliferated. Only a handful will remain, so airlines should carefully research their partners before employing game-changing technology.

The air cargo industry has historically been slow to embrace digital change. How long did it take airlines to untangle the knots and make a decision on implementation of an e-air waybill? While the industry, despite lobbying organizations pushing for change, is circumspect regarding transformation, the simple fact is that shippers no longer care.

The use of leading-edge technology is table stakes. Shippers are looking for the easiest way to book cargo. Full stop. Price matters, of course, but brand allegiance doesn’t. If airlines aren’t offering a frictionless, online process for booking cargo, market share will decline. The air carriers that embrace such a change will see significant competitive advantages.

The solution? Think like an integrator. By using technology to create a branded, end-to-end e-commerce-centric small parcel service, airlines can tap into a new business model without significantly changing operations. Airlines need to provide shippers and other customers with yet another option for air cargo, with a seamless booking interface on an international e-commerce management platform.

Using an end-to-end small parcel e-commerce platform tailored to each specific airlines’ needs opens up new possibilities in the parcel shipping universe. The best e-commerce solutions for airlines utilize blockchain technology to create transparent and auditable pricing records. It’s also important to pay attention to shifting global regulations; a platform offering real-time data enhancement of Harmonized System codes and descriptions makes it easy to stay ahead of rule changes.

The e-commerce boom has happened so quickly, and risen so relentlessly, that global regulations are still being implemented. That’s why it’s important to not only choose the right technology to create branded, end-to-end e-commerce-centric small parcel services, but also to choose the right company of experts that can support the program during evolving governmental requirements. FDA and Customs regulations change. Partner with a third-party technology vendor that stays ahead of any changes that will impact the e-commerce shipping business.

Airlines that embrace new strategies regarding air cargo protect against uncertainty and future supply chain disruptions. It was only three years ago that the COVID-19 pandemic shut down global air travel and the air cargo market lost 50% of its capacity.

Diversification is necessary. By creating new offerings uniting traditional air cargo products with online parcel booking for e-commerce clients, airlines can better protect themselves from supply chain upheaval, while fully tapping into the e-commerce trend.  

Airlines need to work to become a carrier of choice, by winning shipper customers with intuitive technology and unimpeachable service. Developing an e-commerce booking platform for parcel shipments also enables airlines to monetize existing infrastructure. It’s already there, so why not utilize equipment to its full potential? In addition to optimizing capacity, these airlines can increase yield-per-kilo, boosting their bottom lines.

Airlines that take part in international e-commerce parcel shipping can take market share from the traditional dominant players in air parcel shipping while winning new business and creating programs that boost customer satisfaction. For an e-commerce, B2C program to succeed, the technology has to be easy to use. Find a provider that utilizes application programming interfaces (APIs) to simplify e-commerce transportation for logistics providers to increase international growth.

Chad Schofield is chief executive officer at BoxC.