The Gen Z Factor: Smarter Delivery Strategies to Offset Slowing E-commerce Growth

As the pandemic-fueled e-commerce boom unwinds, online sales growth has dipped to only ~6% annually  (far below the 18–20% peaks of 2020–21). In this tight market, Gen Z (roughly ages 18–35) is the bright spot: they’re the largest driver of current growth. A recent Descartes/SAPIO survey of 8,000 North American and European shoppers found that 43% of Gen Z increased their online spending year-over-year (versus 32% of seniors). Nearly half (44%) of Gen Z now shops online at least biweekly (up from 33% last year). Crucially, this cohort offers the greatest lifetime value to retailers, so keeping them happy is key as overall e-commerce growth slows.

• Gen Z’s impact: They’re expected to comprise nearly 20% of global consumer spending by 2030. Meeting Gen Z demand can counteract slowing sales.
  
• High engagement: 44% of Gen Z now shop online at least every two weeks, reflecting how central e-commerce is to their lives.
  
• Lifetime value: Retailers report Gen Z offers the highest long-term value, making it critical to understand and satisfy their unique preferences.
  

High Delivery Expectations Among Younger Shoppers

Gen Z doesn’t just buy more, they demand more from delivery. In surveys, younger consumers place greater importance on every delivery detail: 71% say delivery cost is a top concern, 77% care about security measures, and 72% insist on real-time tracking. Sustainability is also a standout issue: while only 9% of all shoppers see non-green delivery as a barrier, 40% of Gen Z want eco-friendly shipping options (versus 23% of older buyers). In fact, Gen Z uniquely prioritizes speed,  41% choose one- or two-day delivery and 38% same-day when given the option. In short, younger buyers expect choices: affordable or green shipping, precise time windows and fast service, all transparently tracked.

Delivery Performance Gaps and Risks

Unfortunately, many retailers still fall short on these Gen Z expectations. The Descartes study finds only 11% of Gen Z customers report being always satisfied with home deliveries, versus 22% of seniors. Alarmingly, 79% of Gen Z experienced at least one delivery problem in a 3-month period (versus 66% of all shoppers and just 53% of those over 65). Common failures include late or missed deliveries, shipments left unsecured, damaged items, or packages sent to the wrong address. These errors not only frustrate Gen Z – 20% of younger shoppers even abandon a return entirely if the process is inconvenient (versus only 6% of seniors).

• Low satisfaction: Only 11% of Gen Z are consistently happy with delivery, half the rate of older consumers.
  
• Frequent issues: 79% of Gen Z have had a delivery problem in the last quarter. Top issues are shipments arriving late (26%), at the wrong time (25%), left in insecure spots (19%), or even not delivered at all (15%).
• Returns frustration: Because of delivery hiccups, 20% of Gen Z gave up on returning an item after the first attempt, compared to only 6% of older shoppers.

Figure 1: Issues with home deliveries

                                                              Source: Descartes / SAPIO Research

Each problem erodes loyalty and eats into profits.

Consequences of Mediocre Delivery

Because Gen Z has little patience for broken promises, poor delivery experiences lead to immediate backlash. In the Descartes study, 79% of Gen Z took some action after a negative delivery – compared to 45% of seniors. A full 21% of Gen Z shoppers simply stopped ordering from the retailer after a bad delivery. Many also broadcast their frustration: 20% told friends or family to avoid the retailer, and 15% posted complaints on social media (versus just 7% and 6%, respectively, of older consumers). 

• Boycott behavior: About one in five Gen Z consumers never reorder after a failed delivery.
  
• Word-of-mouth risk: Younger buyers actively share their experience: 20% warn friends/family, 15% post on social channels.
  
• Viral impact: In today’s social-media world, one poor delivery can damage a brand’s reputation broadly – a serious threat when e-commerce is maturing and growth is hard-earned.
  

In sum, failing to satisfy Gen Z in delivery quickly erodes the customer lifetime value that retailers can no longer afford to lose.

Figure 2: Impact of negative delivery experiences compounds when shared

                                                                                                                           Source: Descartes / SAPIO Research

Differentiating Delivery to Win Gen Z

The solution is to differentiate the delivery experience by aligning with Gen Z’s delivery “personas.” Rather than a one-size-fits-all promise, offer a menu of choices that match various preferences. For example:

• Budget-friendly shipping: Offer slower or consolidated shipments for price-sensitive shoppers. Let customers choose an economy delivery option (e.g. weekly batch delivery or pickup) with a deep discount.
  
• Precise scheduling: Provide guaranteed delivery windows and flexible rescheduling via app or text. Gen Z values knowing exactly when a package arrives – automated notifications and narrow time slots build trust.
  
• Fast-track options: For those who do prioritize speed (per some surveys), keep a premium fast-delivery choice (e.g. one- or two-day) available at checkout.
  
• Green delivery: Create a “sustainable shipping” option (e.g. bicycle courier, carbon-neutral shipment or local drop-off). This caters to the 40% of Gen Z who want eco-friendly choices.
  
• Streamlined returns: Simplify return shipping and refunds. Since 20% of Gen Z abandon returns due to hassles, make returns painless (free pickup, instant refunds or locker drop-offs) to preserve loyalty.
  

By tailoring services like this, retailers show respect for Gen Z’s needs. Personalization in delivery – just like personalized marketing – sets a brand apart. As Descartes notes, understanding delivery personas (cost-conscious vs. speed-focused vs. eco-minded) enables companies to offer the right option to each shopper. In practice, this might mean using software that lets customers pick a shipping package (cheapest, fastest, greenest, etc.) during checkout.

Leveraging Technology and Optimization

Differentiated delivery is possible with today’s technology. Real-time visibility and route optimization ensure that whatever promise is made can be kept. For example, intelligent route planning can align delivery capacity with the chosen options. With up-to-date insight into where drivers are and which orders are pending, companies can fulfill narrow time-window commitments reliably. This also brings operational gains: by optimizing routes, retailers can reduce fuel use and emissions – lowering costs while appealing to eco-conscious customers.

• AI-driven planning: Use algorithms to assign orders to routes smartly, ensuring 90%+ on-time first attempts. This keeps Gen Z happy and cuts repeat-delivery costs.
  
• Delivery consolidation: Offer options like “deliver all my orders on Friday” or “group shipments” – 38% of shoppers said they’d combine orders if possible. Grouping local deliveries flattens demand peaks and enables discounted “green” slots.
  
• Dynamic scheduling: Publish many low-cost delivery slots far in advance (several weeks out) to let budget shoppers plan and to smooth demand. When delivery density is high, offer free or reduced-fee green slots on days with multiple nearby deliveries.
  
• Smart alerts: Implement real-time tracking apps and proactive notifications. Gen Z expects digital transparency at every step – from “your package is picked up” to “out for delivery” to “delivered” – so they feel in control.
  

These tech levers allow retailers to deliver on brand promises. They help trim costs and emissions (by driving fewer miles) while giving customers the options they demand. In effect, sophisticated last-mile systems turn delivery into a competitive advantage.

Conclusion

Slower e-commerce growth makes customer retention more critical than ever. Gen Z – the online shopping powerhouse – is both a source of hope and a high bar to clear. Descartes’ research shows that only 11% of Gen Z shoppers are satisfied with current delivery performance, and one-fifth will ditch a retailer after a bad experience. The lesson for retailers is clear: deliver smarter or lose ground.

By differentiating delivery,  offering cheap, fast, precise or green options tailored to Gen Z’s preferences,  businesses can strengthen brand loyalty among younger shoppers. Advanced logistics tools (AI-based route planning, delivery analytics, dynamic scheduling) make this feasible, improving reliability and cutting costs. In doing so, retailers not only meet Gen Z’s high expectations, they turn an e-commerce slowdown into an opportunity to grab market share. As Descartes emphasizes, elevating delivery performance and personalization is essential to boost customer satisfaction, protect margins and keep the valuable under-35 cohort coming back for more.