International Shipping: Opportunities and Challenges

• Nearly half (45%) of merchants currently ship more than 20% of their orders internationally, and 82% plan to expand their global reach within the next two years.²
• 61% of surveyed consumers who have shopped with brands like Temu and Shein report price as the most significant driver when shopping globally.⁴
• 73% of merchants report international shipping mishaps due to congested overseas ports in the last 12 months.²
• 49% of consumers have returned items shipped internationally, with 79% of merchants having incurred costs from international returns.³

The appetite for cross-border commerce is growing, but so are the challenges.

Tips for Success:

• Invest in reliable international logistics partners to minimize delays and damages.
• Explore localized fulfillment centers or partnerships to reduce shipping times and costs.
• Consider offering prepaid return labels to ease the return process while controlling costs.

Sustainability: The Green Imperative

• 81% of merchants plan to expand sustainability practices in the next two years.²
• 64% of consumers prefer brands with eco-friendly shipping practices.²
• 91% of merchants acknowledge the environmental impact of eCommerce returns.³

Sustainability isn’t just a trend; it’s a necessity for long-term business success and consumer loyalty.

Tips for Success:

• Use eco-friendly packaging and promote carbon-neutral shipping options.
• Partner with logistics providers that prioritize green practices.
• Educate customers on the environmental impact of returns and offer incentives for reducing them.

Returns: A Costly Reality

• 39% of merchants face a current annual returns rate above 15%.³
• 38% of merchants budget over $100K annually for returns logistics.³
• 74% of consumers return at least some online orders, with 25% returning over 10% of purchases.³

High return rates can strain resources, but a smooth returns process is vital for customer retention.

Tips for Success:

• Optimize return policies to balance customer convenience and cost control.
• Implement predictive analytics to anticipate return trends and adjust inventory strategies.
• Leverage technology to automate returns management and reduce manual effort.
• Implement clear sizing charts and detailed product descriptions to minimize returns.

Fraud and Counterfeit Concerns

• 53% of merchants report return shipment fraud impacts profitability.¹
• 49% of merchants suspect over 20% of returns are fraudulent.²
• 41% of consumers believe counterfeit items are on the rise, with 23% having received counterfeit products.²

Fraudulent returns and counterfeit goods are persistent threats to profitability and trust.

Tips for Success:

• Invest in artificial intelligence (AI) tools to detect and prevent fraudulent return patterns.
• Use tamper-evident seals and tracking for high-value shipments.
• Educate customers on how to identify authentic products and report counterfeits.

Expedited Shipping: Meeting Customer Expectations

• Over the past five years, next-day shipping has increased by 58%, and same-day shipping has grown by an astounding 164%.⁴
• More than half (54%) of consumers are willing to pay for expedited shipping.⁴
• 84% of merchants report that expedited shipping expectations have increased operational costs.⁴

The demand for faster delivery is surging, but it’s driving up costs for merchants.

Tips for Success:

• Offer expedited shipping options strategically for high-demand products.
• Partner with logistics providers specializing in fast delivery to optimize costs.
• Communicate clear timelines and associated fees for expedited shipping to manage customer expectations.

Customer Satisfaction: The Ultimate Metric

• 92% agree the shipping experience shapes their overall shopping experience.¹
• 58% of consumers say a positive return experience increases their loyalty.³
• 97% of merchants report positive impacts on customer retention and repeat purchases from offering expedited shipping.⁴

Superior shipping experiences drive customer satisfaction and repeat business.

Tips for Success:

• Offer multiple shipping options, such as expedited or flexible delivery windows.
• Invest in technology to provide real-time tracking and updates.
• Enhance customer communication around shipping and returns processes.
• Implement loyalty programs and personalized incentives to retain customers.

Ready for 2025?

Shipping and logistics are critical to the success of modern eCommerce. By understanding these key statistics and implementing strategic solutions, merchants can mitigate risks, control costs, and delight customers. Stay informed, invest wisely, and partner with trusted providers to navigate the evolving landscape of 2025 shipping challenges and opportunities.

¹Statistics derived from UPS Capital’s Future of Shipping report.

²Statistics derived from UPS Capital’s 2024 Mid-Year Guide to Shipping Excellence.

³Statistics derived from UPS Capital’s Return of the Goods report.

⁴Statistics derived from UPS Capital’s Need for Speed report.