In a sense, the three reasons that United Parcel Service (NYSE: UPS ) could rise in 2014 can be best understood by thinking about what has, and hasn't, changed in the global economy since 2008. What hasn't changed is the inexorable rise of e-commerce sales and therefore growing ground-based Business to Consumer, or B2C, growth for UPS. However, global trade hasn't grown in line with global GDP growth since 2008 -- a big change from previous economic recoveries. These two facts come together to create challenges and opportunities for UPS; let's examine how UPS is dealing with them, and why it looks set to soar.
![US E-Commerce Sales as Percent of Retail Sales Chart](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_tTBzF8HO2YCnSbdzKCxxIUTFatWeGy7r2-8izFAVqXLgemwWtMJJvkEz6Kx2VDeOx5YJZNr7KArz9_xx1P0pdHM6n1DXeupAC7oa11oPEBIdQ6h-kD1IlQz9a9QjfNIjXtkiynDxvl=s0-d)
All of which leads to the first two reasons that UPS can soar.
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E-commerce growth will likely lead to volume growth for UPS
A look at some simple statistics demonstrates the increasing importance of e-commerce sales to the economy. As the chart below shows, U.S. e-commerce sales have more than doubled since 2008. In addition, e-commerce now makes up a significant share of U.S. retail sales.All of which leads to the first two reasons that UPS can soar.
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