IATA champions five e-commerce strategies
Thursday, May 8, 2025
ATA is advocating five strategies for the air cargo industry to optimise e-commerce business.
These strategies include focusing on e-commerce products and services to build market share; digitalisation to increase speed; system compliance with common standards for customs clearance; investing in air cargo products to address crisis and capacity risks; and competing through responsiveness and value-added services to reduce processing times.
“We believe it’s all about added services,” said Andre Majeres, head of e-commerce, cargo and mail operations at IATA.
“You have to be able to move from being efficient to being excellent in the e-commerce world. Being efficient means that you’re going to be a player in this industry without any added value, and I think the excellence that we want to obtain is what you need to target.”
Speaking during the E-Commerce Forum at IATA’s 2025 World Cargo Symposium (WCS), Majeres also stressed that IATA’s focus on digitalisation, sustainability and safety and security will help support e-commerce growth.
“There is no robust supply chain without these three pillars,” he said.
Market soaring
Airfreight plays an ever more critical role in the transport of cross-border e-commerce, with 80% of e-commerce shipped by air, a figure verified by ICAO, McKinsey and PwC analysis.
The International Post Cooperation’s e-shoppers survey found that the number of people who shopped online at least once a week grew from 34% to 41% from 2023 to 2024.
Purchases grew 30% more during this time period, with speed being cited as a priority.
Comparing the pre- and post-pandemic periods, statista/DHL data shared by IATA shows that in 2019, e-commerce sales amounted to $3.4trn. China and the US had the biggest markets, with $723bn and $365bn in sales, respectively. Sales for the UK totalled $79bn.
By 2023, the market had grown significantly, with $5.8trn in recorded sales. China’s sales had jumped to $2,780bn, and US sales climbed to $1,640bn. EU sales were also recorded as $804bn, while UK sales were $254bn.
There were worldwide e-commerce retail sales of $6.3trn in 2024. This was an increase of 21% year on year, according to eMarketer data.
The research predicted a further 22% increase to $6.9trn from 2024-25, a 23% increase to $7.5trn from 2025-26 and a 25% increase to as much as $8trn from 2026-27.
Data from eMarketer also shows that today, one package out of five is brought online, but by 2027, this could be one out of three packages.
Parcel Monitor research on the volumes of parcels shipped found that in 2022, 170bn e-commerce parcels were transported by air. This was four times more than in 2014.
In 2023, the total was 189bn parcels. Meanwhile, 256bn parcels are expected by 2027. This is 50% up on 2022.
“In the last 10 years, we’ve experienced a 400% growth in the number of parcels shipped by air,” said Majeres.
60% of e-commerce orders move across borders. In 2017, cross-border e-commerce comprised 10% of total air cargo volumes. In 2022, this figure was 20%, and by 2027, it is anticipated to be 30%.
Obstacles to growth
E-commerce air cargo business undoubtedly faces some obstacles, highlighted Majeres.
Challenges include capacity constraints, supply chain disruptions due to geopolitical factors and climate change, trade restrictions, labour and material shortages and outdated technology.
For example, he said: “The US tariffs will impact air cargo. 27% of US-bound freight (by value) was carried by air in 2023.”
He added that there is some uncertainty about the impact in the coming months and years.
Additionally, he pointed out that the revised US de minimis rules might affect e-commerce behaviour, possibly resulting in a shift to local distribution.
According to US Customs and Border Protection, in the first quarter of this year, air represented 84.9% of Bills of Lading (BOL) by transportation mode type. This is down from 86.1% in 2024.
The total number of BOL across all transport was 1,360 in 2024, compared to 443 in Q1 2025.
Also facing the market are potential e-commerce restrictions imposed by the EU, plus potential saturation of the market.
E-commerce air cargo business is also changing geographically and in terms of the type of shipping involved.
Majeres pointed to five major e-commerce trade lanes, as highlighted by 2022 McKinsey data.
Intra-Asia Pacific accounts for 18% of trade, Asia Pacific to the US amounts to 19%, Asia Pacific to Europe totals 19%, intra-Europe totals 17% and Europe to the US/North America counts for 5%.
Referencing US policy decisions affecting e-commerce, he said: “There will be two lanes that will be certainly slowing down a bit.”
Additionally, a McKinsey study has offered some insight into the way cross-border parcels are shipped.
Commercial parcel/direct lane shipping is set to increase to 45% as of 2018.
Companies in this area include Pitney Bowes, Cainiao, Seven Senders, APG, Yunexpress and 4PX Express.
Meanwhile, express, where companies include DHL, FedEx and UPS, has retained a 5% share.
But postal shipping has dropped from 60% in 2016 to an expected 10%.
Looking to the future, IATA has studied the top 50 e-commerce players in the world and their business models to assess the scope of the need for third-party services.
It identified these services as including fully owned capabilities, airfreight shippers, air parcel shippers and hybrid models.
Majeres said: “What we realised is there are some players that are going extremely fast for a very high cost and some others are going very slow for a very low cost.
“So there are opportunities in between. And we’ve seen in the last years that many players are taking that opportunity.”
He added: “Not everyone needs to have their package delivered the next day.”
While debate about the future of e-commerce continues, IATA indicated the figures point to a positive near-term future.
“Despite all the announcements, the trend continues,” reflected Majeres. “So there are some mixed messages out there. Some say that there will be a disruption. Some others say e-commerce is like water, it will find its way.”