Online shopping has been popular for decades and some of the established platforms like Amazon and eBay have been a part of our lives since the late 20th century.
New entrants have come online and proved very popular with some registering unbelievable growth even though they did not exist five years ago.
Consumers are taking advantage of access to sellers all over the world and if they have a seamless and efficient experience, they will remain loyal to a shop.
80% of cross-border e-commerce uses air services, taking advantage of the speed and efficiency of services.
Glasgow Prestwick Airport is developing as an e-commerce hub, which was spurred on by the success of handling charter flights.
Business Development Director Nico Le Roux says that Magma Aviation approached the airport in the 2023 peak season due to capacity issues at other airports.
The success of handling build-up pallets, which were sent intact to London, led the airport to look at handling the end-to-end process because they have the facilities, space and bonded warehouses.
Building on Prestwick’s relationship with Royal Mail and other final mile providers, the airport offers an end-to-end solution so customers can send their cargo to Prestwick where it feeds into the last-mile network, explained Le Roux.
He says, “We then went out to the Chinese market and said this is what we can offer. We are pretty sure we can do it faster and cheaper than any other UK destination and it all took off from there.”
Le Roux and other team members have spent time in China to make connections, build relationships and showcase Prestwick as an alternative gateway into the UK and Ireland, including attending the air cargo China exhibition in Shanghai.
He admits that China is complicated because services require five to six parties, the platform, a master loader or agent, the airline, the forwarder, the customs broker at the destination and the last-mile delivery partner who need to align for services to take off.
He says, “We had to break into all of those verticals to be successful. The team's efforts in China have paid off with professional collateral focusing on different verticals in English and Mandarin, as well as attending events and face-to-face meetings.”
The hard work has paid off with more Chinese companies taking an interest in the service that Prestwick offers.
They are already preparing for 2025’s peak season and Prestwick is part of their plans, says Le Roux.
Prestwick has handled several trial flights where it carried out end-to-end operations and more including sorting, which Le Roux says proves that the airport can take time out of the process, saving the platforms time on delivering to the end customer.
There have been ad hoc flights and soon Prestwick expects at least one flight a day from China carrying e-commerce.
Currently Prestwick does around six scheduled freighter services a week, plus charter flights so the expected growth will double the number of flights.
Since the initiative started, over 30 new jobs have been created focusing on e-commerce, and this will double in the coming months.
The airport controls the whole process so if there is an issue, it takes one phone call without being passed around service providers.
A 6,000 square-metre warehouse has been dedicated to e-commerce with a bonded licence, which required extra security measures.
Mechanised conveyor belts have been installed to speed up operations and there will be investments in mechanised loading belts and other equipment when flight numbers increase.
Le Roux says, “We are working with our final mile providers to offer the fastest and most economical service. Initially this is partially mechanised and the ultimate goal is to go fully automated but we will see what the future brings for e-commerce because no one is clear if this will last or if it is sustainable or not.”
E-commerce has been responsible for much of air cargo’s recent strong performance but people are asking how long growth can be sustained.
It is also a low value and yield commodity so there are questions about the financial sustainability of e-commerce.
Le Roux thinks growth can be sustained for the next year or two but it is impossible to make predictions beyond that time.
Another challenge is the imbalanced capacity as flights out of Asia are filled with shipments while inbound flights are almost empty in comparison.
Prestwick is working with local companies to fill the return legs with high-quality Scottish export products to make services profitable and viable, which has attracted significant interest from seafood producers who value speed of delivery for product freshness.
Le Roux says, “We have got agreements in principle with some of the big forwarders and salmon producers to start utilising outbound capacity. For that reason, we are converting a lot of our warehouses to temperature control so we can get it licensed as an export Border Control Post.”
The market still has a lot of potential, with Le Roux saying, “We are only touching the top tier of platforms. We have not even touched on the second tier so we are starting to look at them and there are hundreds of them who are looking for a solution. They are not in a position to operate a full freighter by themselves but the master agents are getting second tier platforms on board to fill up an aircraft.”
Bringing experts together
The NeX e-commerce network was launched due to a need for a global network specifically designed for cross-border e-commerce specialists, says CEO Justus Klüver-Schlotfeldt.
The existing networks focused on freight forwarders handling Amazon pallets, he said, and not on the growing B2C or C2C cross-border businesses.
He says NeX’s vision was to bring players from the e-commerce supply chain together into a single network.
He says, “By fostering collaboration, innovation, and knowledge-sharing among industry leaders, we aimed to address the unique challenges of cross-border e-commerce and unlock new opportunities for growth.”
In its first year, NeX brought 180 C-level executives together, which Klüver-Schlotfeldt says shows the strong demand for the network and the value it provides to members.
The NeX network represents stakeholders from across the supply chain including first- and last-mile providers, fulfilment operators, customs brokers, retailers, e-tailers and tech companies.
The first manufacturer recently joined the NeX network.
In less than two years, NeX’s membership has grown to 87 organisations representing 99 countries excluding retailers.
Emphasising quality over quantity, Klüver-Schlotfeldt says, “To maintain this standard, we have implemented a strict vetting process, admitting only the best-in-class stakeholders who align with our vision of innovation and excellence in cross-border e-commerce.”
Members benefit from direct access to key stakeholders, cutting-edge technology for cross-border e-commerce and strategic partnership opportunities.
Vetted members get a 50% discounted membership of Neutral Air Partner and the Reverse Logistics Association (RLA), and they are automatically enrolled as corporate members of The International Air Cargo Association (TIACA).
They also get access to Universal Postal Union (UPU) resources, direct access to the British Chinese Chamber of Commerce, the Hong Kong e-Commerce Association, the NeX Global Academy Programme and exclusive access to NeX and Neutral Air Partner events.
Klüver-Schlotfeldt says, “With these benefits, NeX ensures that its members are equipped with the tools, partnerships, and resources needed to excel in the rapidly evolving cross-border e-commerce industry.”
Handling cross-border e-commerce has always presented challenges with customs compliance and shipment data accuracy being consistent bottlenecks, the lack of capacity to handle the volume of shipments, the lack of infrastructure to handle returns and a lack of understanding of how to manage shipments effectively.
Klüver-Schlotfeldt says that data does not resolve issues like driver shortages but it can optimise resources and address inefficiencies.
NeX is supporting the development of customs gateway solutions to simplify compliance and improve data accuracy.
Partnerships with bodies like UPU ensure better standardisation and alignment across borders.
Logistics providers, airlines and tech companies are scaling infrastructure and new technologies are helping them handle volumes.
Collaboration with RLA is making returns easier and the NeX Academy is providing much-needed training and education for stakeholders.
He says, “By addressing these challenges through data-driven solutions, strategic partnerships, and educational initiatives, the cross-border e-commerce industry is becoming more resilient and better prepared to handle future growth.”
As Chinese shipping giants do not provide detailed data, it is hard to know the market’s value.
Based on the data it uses, NeX says cross-border e-commerce sales were worth $1.5 trillion in 2019, rising to a projected $2.1 trillion in 2022 and global retail e-commerce sales could be worth $7.4 trillion by the end of this year.
The market will continue to grow and evolve due to consumer markets, technological advances and regulatory demands.
Retailers expect greater transparency from logistics providers including real-time tracking, sustainability metrics and compliance with ethical standards, which can be provided through technologies like AI and blockchain.
Technology is increasingly important with AI and predictive analytics optimising supply chains, automation speeding up deliveries and the focus on sustainability increasing demand for eco-friendly packaging and carbon-neutral shipping options.
Consumers also expect a quick and convenient service from payment to returns.
Klüver-Schlotfeldt says, “The cross-border e-commerce market is poised for robust growth, characterised by regional diversification, technological advancements, and a heightened focus on sustainability and transparency. Logistics and e-commerce players who adapt to these trends will thrive in an increasingly competitive and dynamic global market.”
This article was originally published in the March/April 2025 issue of Air Logistics International, click here to read the digital edition and click here to subscribe.