E-tailers Best Positioned for Success by Understanding These
Emerging Trends for 2025
By Douglas Longobardi, EVP, Sales, Asendia USA
In 2025, many e-tailers will be shifting from traditional postal services toward alternative options, driven by the need for more reliable services, faster transit times, fewer returns, and greater customer satisfaction.
Looking back to 2024, there were several changes and challenges for the e-commerce industry that have helped shape the way retail and e-commerce look today and where we are heading. Given the impact of shifts in the industry from last year, along with changes on the horizon for global e-commerce, the following key trends are most likely to shape the e-commerce landscape in 2025.
Key Trends Shaping E-commerce in 2025
Migration towards private carriers & providers
Online retailers need shipping solutions they can rely on, even more so during the crucial peak period between Black Friday and Christmas. With ongoing disruptions in traditional postal services, many e-tailers have been shifting toward alternative options. Recent events, such as the Canada Post strike, have driven a migration toward private carriers and providers. The motivation behind this shift is the need for more reliable services, faster transit times, fewer returns, and greater customer satisfaction. In fact, many e-tailers are willing to pay slightly more for an upgraded solution to ensure they keep shoppers happy. Working with a shipping provider that offers these services has proven particularly effective in ensuring reliable and timely deliveries during such disruptions. For example, during the peak season Canada Post strike in 2024, several online retailers relied on Asendia USA’s e-PAQ Select Direct Access Canada DDP solution to avoid delays and have the peace of mind of a reliable and optimized delivery network.
Shift from DDU to DDP
In addition to moving towards private carriers and providers, many e-tailers are also taking a closer look at the shipping methods they offer to shoppers. In an effort to improve the customer experience, we see e-tailers making the switch from DDU (Delivery Duty Unpaid) to DDP (Delivered Duty Paid) solutions. DDP can provide a more favorable customer experience as the shopper does not need to pay any duties or taxes at the time of delivery. With DDU, shoppers may be faced with unexpected costs, leading to a less than favorable experience.
Political and economic factors influencing trade
Tightened export controls
Political and economic factors also continue to influence global trade. Potential changes in tariffs on goods moving between China, Mexico, Canada, and the United States remain a concern for e-commerce businesses. The President in Mexico also recently announced an increase to tariffs on many finished textile goods and textile inputs and imposed restrictions on temporary imports of textiles, a move that targets U.S. e-commerce sellers using a "border-skipping" strategy to avoid tariffs on Chinese goods. Retailers should closely monitor these and other political and economic developments and prepare strategies to mitigate potential impacts.
Online retailers shipping internationally have been impacted by tightened export controls over the past few years which have resulted in increased "return to sender" issues. This trend appears poised to continue and expand into even more countries worldwide. Regardless of the destination or service used for international e-commerce shipments, it is imperative for e-tailers to:
- provide clear, complete, and accurate item descriptions.
- provide complete and accurate Sender details.
- provide correct values and quantities.
- familiarize themselves with restrictions on prohibited items and dangerous goods, and ensure these items are not in their international shipments.
- familiarize themselves with restrictions on shipping lithium batteries.
- ensure that their international customers (shoppers) are not on the Denied Persons list.
Working with a shipping partner that has proven expertise and relationships in the international shipping industry is recommended for online retailers that want to maintain customer satisfaction and minimize costly returns due to restrictions and customs requirements.
ESG continues to grow in importance to retailers
Automation helps meet growing expectations
Many online retailers around the world have placed a significant emphasis on the importance of sustainability over the past several years, but this focus has now expanded to Environmental, Social, and Governance (ESG). More and more e-tailers are looking for shipping partners that prioritize ESG. Global shoppers are driving this demand as there’s an ever-growing number of environmentally conscious consumers looking to shop online but only with brands that prove they truly care about ESG initiatives. E-tailers that put their own ESG strategies in place, and seek out shipping partners that do the same, are best positioned to gain a competitive advantage with this growing pool of consumers.
Automation is reshaping the logistics sector by enabling faster processing times, more efficient usage of warehouse space, and greater accuracy. It also allows for continuous operation, maximizing the available time for processing orders and increasing throughput. E-tailers can benefit significantly by partnering with a shipping provider that continues to focus on automation and innovation as they are best able to provide online retailers with more consistent and reliable services. Automation will play a crucial role in helping retailers enhance efficiency and meet growing consumer expectations.
Cross-border demand continues to grow
The demand for products from US-based retailers by markets such as Mexico, Canada, the UK, Australia, and Switzerland is growing. These regions present significant opportunities for e-tailers seeking to expand their global reach. E-tailers realizing the most success in international markets are those that have gone the extra mile and created a localized checkout experience for shoppers, no matter where in the world they are. Localizing your checkout can include things like providing prices in domestic currency, translating to local language for the shopper, and offering preferred payment methods. It’s also important to offer shipping options that don’t break the bank.
Looking ahead, Asendia USA anticipates further industry shifts, including increased reliance on regional carriers as businesses seek alternatives to traditional postal services. By staying ahead of these trends, online retailers can thrive amidst a dynamic and competitive marketplace and can best position themselves for success.
Diane Palmquist, CEO, Flooid
Diane joined Flooid in 2020 with 25 years experience working with enterprise retail clients with a focus on ERP, Supply Chain and Master Data Management at companies such as SAP, Infor, GT Nexus and others. Diane brings global experience in selling and delivering platforms and products into complex ecosystems.