1. What does the upcoming peak season look like for SMB shippers?
SMBs continue to report mixed expectations for their businesses – some see softer demand while others remain unfazed, citing healthy sales, robust pipelines and strong foundations. However, the overall SMB outlook last year was actually lower heading into peak season, so barring any major events, we see the potential for positive shipper sentiment heading into peak.
2. What challenges are currently the most pressing/top of mind for these shippers?
Small business owners are balancing a lot, from managing costs and inventory in an uncertain economic environment, to meeting high customer expectations for speed and transparency. One challenge we consistently hear about is the need to simplify logistics and give SMBs greater control over their shipments. That’s why UPS recently introduced enhancements that make it easier to create shipments, manage pickups, and stay informed from pickup through delivery.
3. How do customer expectations shape SMBs’ shipment strategies?
Consumer expectations continue to rise. What was once an innovation – a delivery photo, for example – is now table stakes. Shipping and delivery are a critical part of the overall shopping experience and delighting customers requires a seamless process from checkout to doorstep. SMBs are looking for carriers who can provide that premium service and solutions that help them manage their businesses.
4. What impacts on delivery costs/speed are you seeing due to the global uncertainty (war in Iran, changing tariffs, etc.)?
We recognize that global events and trade policy changes can create uncertainty for businesses and we’re helping customers adjust to shifts in real time, while maintaining outstanding service. For international shipments, efficient customs clearance is critical. That means submitting paperwork electronically with correct product descriptions and tariff codes. We’re helping our customers by offering technology-driven tools that help them with those tasks, so their packages keep moving.
5. Is there anything else you’d like to add?
Running a small business is hard but shipping shouldn't be. Small businesses want solutions that enable them to match the sophistication of larger enterprises but avoid overcomplication. They need more visibility, more control and less complexity so they can spend less time managing logistics and more time serving customers and growing their business.
Chad Miller is UPS Vice President of Product Development.
