Supply Chain Scanner - Week of March 3, 2025
Weekly blog by Emily Atkins
Convenience intensifying as principal consumer expectation in e-commerce
Consumers are looking for convenience above all in their e-commerce transactions in 2025. For vendors, this translates as offering options for customers at every touch point in the shopping process. On the logistics side, this also means providing reliable delivery, proactive updates, proof of delivery, and frictionless returns and resolutions. These are findings from a recently published FedEx report, “Harnessing emerging trends to drive business growth”. The report is based on trends data and literature reviews as well as surveys of consumers and small- and medium-sized businesses (SMEs). For logistics providers and those tasked with logistics functions for e-commerce sellers, the takeaways from the report could be very important as the online market becomes ever more competitive.
The report is clearly presented and provides insights into the trends it discovered and gives readers tips on what they need to do to stay ahead of the competition in the e-commerce space. While the report covers trends beyond those pertinent to logistics, let’s take a look at several that might affect your operations.
The top three takeaways from the report are that convenience is king, meeting high post-purchase expectations is table stakes for success, and generational consumer behaviour differences are driving preferences and engagement.
The report found that 97 percent of consumers have abandoned purchases thanks to insufficient convenience, while 76 percent would consider moving to another retailer that offers preferred digital services. To meet these expectations, the report suggests giving shoppers choices of payment modes, as well as delivery dates and sustainable logistics options.
Free shipping continues to be of paramount importance in e-commerce. The key elements of convenience – noted as a priority by 80 percent of consumers – are home delivery (identified by 81 percent), free shipping (76 percent), and real-time package tracking (68 percent). The report recommends offering free shipping and hassle-free returns to help eliminate deterrents like unexpected costs, bolstering price transparency and customer trust.
Post-purchase experiences are also becoming a critical factor for e-commerce success, the report finds. Nine out of 10 buyers say that their experience after making a purchase is as important as the buying experience itself. And 86 percent say it will affect their decision to use that retailer again. To take advantage of these facts, merchants need to communicate well after a purchase and invest in a strong consumer service organization, as well as equipping that team to resolve shipping issues swiftly.
No discussion of e-commerce would be complete without mentioning returns. The average return rate for e-comm purchases in 2024 was 16.9 percent, according to the National Retail Federation (NRF). But for some retailers that number is as high as 30 percent. The cost to process a return can be anywhere from 20 to 65 percent of the item's original value.
With the possibility of needing a return being so high, it’s no wonder that FedEx found that 73 percent of consumers say easy and convenient return options are a deciding factor when shopping online. For retailers, using available tools like AI to enhance the customer experience can unlock this smooth experience.
The report recommends offering as many choices as possible, including scheduled delivery dates/times, flexible returns, and multiple delivery methods. If an issue does crop up, the key is to respect the customer and “create frictionless returns and seamless resolutions for lost or stolen orders,” the report advises.
Finally, different generations shop differently. Gen Z wants digital interaction almost exclusively. Millennials care about how brands behave towards employees and the environment, and many boomers still want to shop in person. These generational distinctions need to be factored in while designing any e-commerce interface, the report says.
“E-commerce success in 2025 isn’t just about having the right product selection – it’s about delivering a seamless end-to-end customer experience,” said Jason Brenner, senior vice president, digital portfolio at FedEx. “Retailers that prioritize convenience, including easy returns, fast and transparent shipping, and frictionless digital engagement will ultimately lead the market.”
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Emily Atkins
President
Emily Atkins Group
Emily Atkins is president of Emily Atkins Group and was editor of Inside Logistics from 2002 to 2024. She has lived and worked around the world as a journalist and writer for hire, with experience in several sectors besides supply chain, including automotive, insurance and waste management. Based in Southern Ontario, when she’s not researching or writing a story she can be found on her bike, in a kayak, singing in the band or at the wheel of her race car. LinkedIn: https://www.linkedin.com/in/emilyatkinsgroup/