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E-commerce Continues to Explode, Can Customs Keep Up?

E-commerce > E-commerce Continues to Explode, Can Customs Keep Up?

The exponential growth of eCommerce has brought about unprecedented change in the world of international trade and customs clearance. This article examines the challenges faced by customs authorities and international trade businesses in the face of the surge in online sales.

eCommerce – A new era of hyper-growth

Online sales are growing staggeringly, with US consumers alone spending $861.12 billion online in 2020. The COVID-19 pandemic largely fueled this growth, with online spending representing 21.3% of total retail sales for the year.

The eCommerce super-highway – An obstacle course for customs

The rapid growth of eCommerce has created new challenges for customs authorities, including processing vast quantities of goods, an alarming increase in illicit goods, more unsophisticated buyers and sellers, and new ploys for avoiding customs and taxes.

A heavyweight on businesses

International trade businesses are also grappling with the impact of eCommerce, which has led to an increase in paperwork, classification and processing errors, and having to contend with the many and evolving laws of each country they ship to or from.

Where do customs go from here?

Automation is the only viable solution allowing customs authorities and international trade businesses to keep pace with the eCommerce revolution. Traditional, manual methods cannot effectively or efficiently deal with the growing volumes of transactions, shipments, goods, and documents.

For more about what’s being done in general and by AiDock specifically to confront this deluge, contact us.

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