Home / Business and Economy / Retailers Race for Faster Delivery
Retailers Race for Faster Delivery
29 Jul
Summary
- Consumers now expect free shipping within 2.6 days.
- Late deliveries weaken customer loyalty significantly.
- Alternative carriers are growing while major ones pivot.
Consumers now expect free shipping in an average of 2.6 days, a decrease from the previous 3.4 days. This accelerated demand has made last-mile carrier diversification a standard operating procedure. A significant 55% of retailers are utilizing carriers beyond FedEx, UPS, and the U.S. Postal Service, with over a third actively reducing volume with the latter two.
Late deliveries, even with an apology, deter 88% of shoppers from future purchases, putting approximately 20% of demand at risk. Concurrently, 83% of executives report rising per-package costs, and many find home delivery unprofitable. This dynamic has led major carriers like UPS and FedEx to shift focus from consumer parcel delivery to more lucrative B2B logistics, despite business-to-consumer traffic dominating 75% of the parcel market.
