Dive Brief:
- More and more shoppers are blaming e-commerce merchants for delivery problems, according to a recent InsureShield Shipping Insurance report. InsureShield surveyed 500 e-commerce merchants and 1,000 U.S. consumers for the report.
- In 2025, 39% of consumers surveyed blamed shipping providers for delivery-related issues. That’s a 53% decline from 2022, when 83% of consumers surveyed blamed shipping providers for delivery mishaps.
- “Brands that fail to proactively manage shipping visibility, customer communication, and risk mitigation will bear the brunt of consumer dissatisfaction,” the report says.
Dive Insight:
E-commerce retailers are struggling to meet consumers’ rising expectations for faster delivery, which can hurt the bottom line.
“Delivery mishaps — whether due to theft, damage, or delays — now impact more than just financials. They directly shape brand trust, customer satisfaction, and long-term loyalty,” the report says.
Three-quarters of shoppers surveyed say last-mile delivery problems like late or missing packages or shipments left in unsafe locations are “their biggest frustration,” according to InsureShield, which is owned by UPS’ financial arm.
In addition, 85% of merchants report that consumers’ growing delivery expectations have affected their operations, with 42% citing major disruptions. Industries such as toys, games and outdoor goods, as well as high-end and luxury goods, report even higher shares of disruption.
It’s no surprise, as nearly one-third of consumers surveyed said fast delivery was more important than cost and product selection. Gen Z shoppers, however, were significantly more likely to value fast shipping than older generations, who tend to prioritize affordability.
Shoppers also want more control over deliveries. Nearly half — 44% —of consumers surveyed want to be able to customize their shipping options, and a similar share want package protection to guarantee safe delivery or trouble-free replacements if something goes awry.
About two-thirds of consumers report that real-time package tracking would make them more likely to purchase from a brand, while more than half say they would be more likely to buy something if they could choose the arrival date and/or time.
As a result, brands are investing in technology such as real-time tracking solutions and AI-powered delivery route optimization to improve last-mile delivery. Some merchants, however, say the high cost of these solutions and managing multiple carriers are major pain points.
