The pandemic-era ecommerce boom that once supercharged online sales is losing steam. In 2020, U.S. ecommerce sales skyrocketed to around 35%, compressing a decade’s worth of growth into a single year. Fast forward to 2025, and the pace has significantly slowed, with projected annual growth hovering around 6%—a stark contrast to the pandemic peak of 18–20%. Although U.S. retail spending grew by 1.7% in March as consumers anticipated new tariffs, momentum quickly fizzled. April saw a meager 0.1% increase, highlighting a broader slowdown in consumer confidence amid economic uncertainty and rising costs.
Complicating matters, e-commerce retailers—particularly those heavily reliant on imports from China—are feeling the pressure from higher costs of goods sold (COGS). New tariffs and the removal of the de minimis exemption are tightening margins, while geopolitical instability and persistent supply chain disruptions are creating additional fulfillment challenges. Despite these headwinds, there’s a glimmer of hope for retailers and their delivery partners: the next generation of consumers.
The Youth Advantage
Retailers have a strategic growth opportunity in younger consumers—namely, Gen Z and younger Millennials aged 18–35. These digital natives are steeped in the online shopping experience and are expected to account for nearly 20% of global spending by 2030. According Descartes’ 2025 study How Smarter Delivery Wins Younger Consumers as Online Buying Slows, this age group has driven the most growth in ecommerce over the past year. While 18% of all consumers reported cutting back on spending, 43% of under-35s actually increased their online purchases. Furthermore, 44% of this group now buys online at least every two weeks, up from 33% in 2024.
Great Expectations
This cohort doesn’t just buy more—they also expect more. Under-35 consumers bring high expectations to the online shopping and delivery experience. Key priorities include delivery cost (71%), security (77%), and robust tracking (72%). Like older shoppers, they want timely deliveries in good condition and with straightforward return processes. Another factor that sets them apart is a heightened focus on sustainable delivery. While only 9% of all respondents cite environmentally unfriendly deliveries as a major concern, 40% of under-35s want sustainable delivery options—compared to just 23% of those over 65.
Delivery Disconnect
Despite improvements in fulfillment, many e-commerce businesses still struggle to meet younger consumers’ standards. The Descartes study reveals persistent dissatisfaction among this demographic. Only 11% of under-35s are consistently satisfied with their delivery experience—half the satisfaction level of over-65s. Alarmingly, 79% of under-35s experienced at least one delivery issue in three months, compared to 66% of all consumers and just 53% of over-65s.
Common issues include late or failed deliveries, damaged goods, and packages left in unsecured locations—all of which last mile software solutions can help address. These issues not only undermine the customer experience, they also erode brand trust, spike customer acquisition costs, and jeopardize long-term profitability.
Consequences of Mediocre Delivery
The impact of poor delivery experiences is especially severe with younger shoppers, who are more likely to retaliate. While 21% of under-35s reported they stopped purchasing from a retailer after a poor delivery experience, 79% said they took some form of action. This includes warning friends and family (20%) or airing grievances on social media (15%). By comparison, only 7% and 6% of over-65s, respectively, engaged in these behaviors. In today’s digital-first world, such actions can significantly damage brand reputation and future revenue.
Tailoring Delivery for Loyalty and Growth
For retailers, the message is clear: improving the delivery experience is essential, and the under-35 demographic represents both a challenge and a lifeline. By leveraging leading last-mile home delivery technology, companies are better equipped to provide younger consumers with delivery flexibility, reliability, and personalization. Many under-35s are less concerned with speed and more focused on cost (28%), precise delivery windows (18%), or sustainability (14%). Retailers that can accommodate these preferences—offering low-cost, reliably timed, or eco-friendly deliveries—will stand out. By tailoring delivery services to meet the expectations of these consumers, ecommerce businesses can build stronger brand loyalty, reduce churn, and enhance customer lifetime value—ultimately turning a slowing market into an opportunity for competitive advantage.
By Johannes Panzer, Head of Global Ecommerce Marketing at Descartes 
