Convenience, seamless returns key to e-commerce success in 2025, says FedEx report

A new report from FedEx Corp. says businesses that prioritize convenience, hassle-free returns and personalized digital engagement will have a competitive edge in the growing e-commerce market.

The FedEx 2025 E-Commerce Trends to Watch Report, released in collaboration with C Space, highlights evolving consumer expectations, with 81 per cent of shoppers prioritizing home delivery, 76 per cent seeking free shipping and 68 per cent expecting real-time tracking.

“E-commerce success in 2025 isn’t just about having the right product selection—it’s about delivering a seamless end-to-end customer experience,” said Jason Brenner, senior vice-president, digital portfolio at FedEx.

The report also found that nearly all consumers surveyed—97 per cent—have abandoned a purchase due to inconvenient shopping experiences, emphasizing the importance of easy returns.

The study revealed generational differences in shopping habits, with Gen Z discovering brands on TikTok and Instagram, Millennials favouring companies with strong labour practices and Boomers preferring in-store shopping.

It also noted a shift in holiday shopping habits, with 22 per cent of consumers starting as early as August to spread out spending, and 16 per cent already shopping year-round.

FedEx says businesses that adapt to these trends by enhancing digital engagement, refining return policies and offering year-round promotions will be well-positioned for growth.