ShipStation Breaking Benchmarks: Navigating New Ecommerce Realities in 2025
US retailers are facing unprecedented challenges as consumer priorities shift, economic pressures intensify, and the global marketplace transforms.
In February, ShipStation released the Delivery Benchmark Report compiled from November 2024 data. However, with changes in the economic environment, it’s clear that ecommerce retailers need a new source of truth, highlighting areas that have changed in the last few months. Cue ShipStation’s latest ebook, “Breaking Benchmarks,” which offers essential insights based on fresh data from April 2025 to help brands adapt and thrive.
Here are some highlights from the report.
The Cost Consciousness Revolution
Data from the Breaking Benchmark report reveals that 75% of consumers now express significant concern about online order costs—a 13% increase from November 2024. This isn’t just casual price sensitivity—it’s fundamentally altering purchasing decisions across all demographics.
Millennials are particularly affected, with 44% expressing heightened concern about online prices. As inflation persists and economic uncertainties grow, consumers are becoming increasingly value-driven, creating both challenges and opportunities for retailers.
The Delivery Dilemma: Is Speed or Cost More Important?
The relationship between delivery speed and cost has reached a critical turning point in 2025. While speed remains important, 41% of consumers now consider delivery cost a critical factor—an 8% increase from last year.
Interestingly, this varies dramatically by generation:
- Baby Boomers and Gen X show the highest sensitivity to delivery costs (47% and 48% respectively)
- Gen Z maintains a preference for speed, with 28% prioritizing quick delivery
- Millennials occupy a middle ground, with 35% prioritizing cost and 29% valuing delivery speed.
Even more striking, 69% of consumers would switch brands for more convenient delivery or return options—a 25% increase from 2024.
US Retailers Are Shifting Growth Expectations and International Ambitions
The optimism of US retailers in late 2024 regarding online growth expectations has given way to a more cautious outlook. In November, zero US retailers expected lower growth in 2025. April 2025 data now shows that:
- 13% now expect slightly lower growth
- 8% anticipate significantly lower growth
- Retailers expecting higher growth dropped from 54% to just 34%
This dramatic shift stems from two key factors: changing consumer spending patterns as budgets tighten, and uncertainty around tariffs and trade policies affecting pricing strategies and inventory planning.
US retailers are also reconsidering global expansion plans. The percentage focusing solely on domestic markets jumped from just 4% in 2024 to 28% today. Similarly, retailers planning to enter new markets in the next 12 months plummeted from 44% to 17%.
Four Strategies for Success in a Changing Market
Despite these challenges, forward-thinking brands can maintain and grow revenue by:
- Embracing transparency with customers about delivery timeframes, costs, and potential changes
- Finding a balance between delivery speed, convenience, and cost through flexible options
- Planning for economic impacts on consumer behavior with scenario-based strategies
- Optimizing fulfillment operations to improve efficiency and reduce costs
Turn Ecommerce Turmoil Into A Strategic Advantage
For a comprehensive analysis of these trends and detailed strategies to navigate today’s ecommerce and global marketplace challenges, download ShipStation’s full “Breaking Benchmarks” ebook. Gain access to in-depth insights, data-driven recommendations, and expert guidance to help your business not just survive but thrive in today’s complex retail environment. Get your copy here.
