Insights to Help Your Business
From reliability to real-time tracking, getting shipping right is critical for boosting customer satisfaction and loyalty.
As we wrap up the 2024 holiday season and look ahead to 2025, consumer expectations for shipping are clearer than ever. New UPS Capital data sheds light on what shoppers value most, providing a roadmap for merchants who want to elevate their shipping strategies in the new year and make adjustments for even better customer experience (CX) in 2025.1 From reliability to real-time tracking, getting shipping right is critical for boosting customer satisfaction and loyalty.
For 33% of surveyed consumers, reliability should be the top priority for merchants in 2025. This means fewer lost packages, minimal damages, and reduced delivery delays, even during peak seasons. As eCommerce continues to grow year over year and more items are bought online, dependable shipping is essential for success. Moreover, 39% of respondents said delivery delays were the shipping challenge they encountered most frequently in 2024, highlighting the need for reliable shipping options.
Consumers want peace of mind knowing their orders will arrive in good condition and on time. To achieve this, merchants need to strengthen partnerships with reliable carriers, invest in quality packaging, and optimize logistics operations, including prioritizing package insurance.
While reliability is a top priority for a third of consumers, another 18% of surveyed shoppers say speed (faster delivery times) is the top strategy merchants should prioritize in 2025. Faster delivery times can be a competitive advantage for retailers, especially during peak shopping seasons. In the age of Amazon Prime, where consumers are used to getting their packages within two days, fast shipping is becoming less of a “nice to have” and more of a “need to have.”
In 2025, merchants can meet this expectation by offering expedited shipping options and streamlining their supply chains. Strategically located fulfillment centers and the use of advanced logistics technology like predictive analytics can help shorten delivery windows.
Shipping costs are another major consideration, with 19% of respondents highlighting affordable or free shipping as their top priority for 2025. While balancing cost and efficiency is often challenging, especially in an environment where costs continue to rise, offering free shipping thresholds, flat-rate options, or bundled deals can appeal to price-conscious shoppers.
For merchants looking to improve their CX, clear communication around shipping fees and shipping promotions can also help enhance overall consumer satisfaction.
Real-time tracking is now a necessity. In fact, more than two-thirds (68%) of consumers surveyed said real-time tracking updates made their shipping experiences positive in 2024. Looking forward to 2025, 30% of shoppers surveyed believe that more accurate tracking updates would improve their overall shipping experience.
Merchants should prioritize transparency by providing frequent and accurate tracking information, which can help build trust and reduce anxiety about delivery status. Artificial intelligence (AI) tools like predictive analytics can increase visibility throughout the supply chain and help automate updates to ensure end-to-end transparency for consumers.
To meet consumer expectations in 2025, merchants should focus on these key strategies:
By implementing these strategies, merchants can turn shipping into a competitive advantage, driving positive customer experiences and loyalty in 2025.
1All statistics derived from an online survey completed by 1,000 18+ U.S. adults. It was commissioned by UPS Capital and fielded by Dynata, a global market research firm, in December 2024.