Pandemic Speeds Ecommerce Shift Alters Retail and Shipping

A ShipStation report reveals a surge in online shopping during the pandemic, with consumers paying closer attention to shipping costs, speed, and return policies. Retailers should proactively communicate delivery information, optimize return processes, and flexibly address supply chain challenges to enhance customer experience and gain market share. Meeting heightened consumer expectations regarding transparency and convenience in e-commerce logistics is crucial for successful retail strategies in the post-pandemic landscape.
Pandemic Speeds Ecommerce Shift Alters Retail and Shipping

The COVID-19 pandemic has accelerated digital transformation across industries, with e-commerce experiencing unprecedented growth. As physical stores shuttered during lockdowns, online shopping transitioned from convenience to necessity, fundamentally altering consumer behavior and retail dynamics.

From Optional to Essential: The E-Commerce Surge

Recent data from ShipStation's report "The Last Touchpoint, Lasting Impact: 2020-2021 Edition" reveals a 33% increase in North American online shopping activity over the past year. Approximately two-thirds of consumers now conduct most purchases digitally, suggesting these behavioral changes may persist post-pandemic.

Supply Chain Under Pressure: The Invisible Backbone

The e-commerce boom has strained global supply chains, with 84% of respondents identifying delivery experience as the most critical aspect of online shopping - up from 80% in 2019. Retailers face mounting pressure to optimize logistics networks while balancing:

  • Shipping costs (97% consumer importance)
  • Delivery speed (92% consumer importance)
  • Inventory management challenges
"While consumers currently show greater patience with delivery timelines, this tolerance is temporary," notes Krish Iyer, ShipStation's Head of Industry Relations. "Retailers must use this period to strengthen their logistics infrastructure."

The Communication Imperative: Transparency Builds Trust

Proactive communication has emerged as a critical differentiator. Key strategies include:

  • Pre-purchase delivery time estimates
  • Real-time shipment tracking
  • Timely delay notifications

Data shows 93% of shoppers will remain loyal if retailers acknowledge delivery issues, while 79% now expect more frequent updates about potential delays.

Return Policy Revolution: The New Battleground

Return policies significantly influence purchase decisions, with 54% of consumers considering them before buying. Current expectations include:

  • Free returns (89% demand)
  • Self-service options (85% preference)
  • Multiple return methods (mail-drop 67%, pickup 66%)

The pandemic has likely permanently altered return behaviors, with home-based processes becoming standard. Retailers investing in streamlined return systems will gain long-term competitive advantage.

Key Operational Insights for Retailers

Additional findings from the ShipStation report highlight critical considerations:

  • 79% of consumers show no carrier preference
  • 80% hold retailers ultimately responsible for delivery outcomes
  • 90% report negative shipping experiences impact overall satisfaction
  • 60% are incentivized by future discount offers

Navigating Future Supply Chain Challenges

The report identifies two emerging challenges:

  1. Inventory forecasting: Early holiday purchases complicate demand prediction
  2. Return management: Accelerated return cycles require agile restocking

As consumer expectations continue evolving, retailers must prioritize delivery experience optimization, transparent communication, and flexible supply chain management to thrive in the post-pandemic retail landscape.