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: By 2030, Gen Z will comprise about one-fifth of global consumer spending, making them critical for future e-commerce growth.
  
• High engagement: Nearly half of Gen Z shops online at least every two weeks, far more frequent than older shoppers. This high activity means their preferences can shape industry trends.
  
• Lifetime value: Retailers report that Gen Z customers have the highest long-term value. In a slowing market, earning Gen Z loyalty through excellent service can offset weaker growth elsewhere.
  

High Delivery Expectations Among Gen Z Shoppers

Gen Z consumers don’t just buy more online – they also expect more from delivery. Surveys show younger shoppers place extra importance on every delivery detail. Cost, security, and tracking top their list of priorities: 71% of Gen Z say low delivery cost is crucial, 77% care about secure delivery (e.g. not leaving packages exposed), and 72% insist on robust real-time tracking of orders. They expect their purchases delivered on time and intact, with hassle-free returns, just like any shopper – but Gen Z raises the bar even higher.

Sustainability is another standout demand. While only about 9% of all shoppers are deterred by non-eco-friendly shipping, a hefty 40% of Gen Z want green delivery options (versus 23% of older consumers). This might mean carbon-neutral shipping or recyclable packaging – Gen Z is much more likely than boomers to factor a retailer’s environmental impact into their buying decisions. Gen Z also uniquely prioritizes speed when it’s offered. One industry survey found Gen Z was the most likely cohort to choose expedited shipping: 41% of Gen Z shoppers select one- or two-day delivery if available, and 38% even opt for same-day delivery when they can. In short, younger buyers want choices at checkout – from affordable or eco-friendly shipping to precise time windows and lightning-fast service – all with full transparency along the way.

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 (Losing Gen Z Customers)

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 Options to Win Gen Z Shoppers

The good news is that retailers can turn delivery into a competitive advantage – if they’re willing to adapt. The key is to differentiate the delivery experience by aligning it with Gen Z’s varied preferences (sometimes called delivery “personas”). Rather than a one-size-fits-all shipping policy, winning brands offer a menu of delivery options that cater to different needs. This flexibility shows Gen Z customers that you get what they want and you’re willing to meet them on their terms. For example, leading retailers are adopting strategies such as:

• 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 for Smarter Delivery

Offering flexible options is one side of the coin, consistently keeping those delivery promises is the other. Luckily, today’s technology and advanced logistics tools make it very possible to delight Gen Z with reliable service while keeping costs in check. To meet Gen Z’s high expectations, retailers are investing in smarter last-mile delivery systems that optimize routes, improve visibility, and adapt on the fly. Real-time data and automation ensure that whatever option a customer selects (cheap, fast, precise, or green), the execution lives up to the promise. For example:

• 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: Smarter Delivery Is Key to Gen Z E-commerce Success

Slower overall e-commerce growth means customer retention is more critical than ever. And Gen Z – the new powerhouse of online shopping – presents both a challenge and an opportunity. This cohort is injecting much-needed growth into online retail, but they also set a high bar for retailers to clear. Research shows only about 11% of Gen Z shoppers are satisfied with current delivery performance, and roughly one-fifth will ditch a retailer after a single bad delivery. The lesson for businesses in 2025 is crystal clear: deliver smarter or lose ground. If you can’t meet Gen Z’s expectations, plenty of other options are just a click away, and young consumers won’t hesitate to switch.

On the flip side, those merchants who do rise to the occasion can turn an e-commerce slowdown into an opportunity. By differentiating delivery – offering cheap, fast, precise, and green shipping options tailored to Gen Z’s preferences – retailers can strengthen brand loyalty among these discerning young shoppers. Advanced logistics tech (from AI route planning to real-time delivery analytics) makes it feasible to keep promises without breaking the bank. The payoff for getting it right is huge: improved reliability, lower operational costs, and a reputation for service that keeps the valuable under-35 segment coming back. Gen Z customers reward retailers who respect their time, budget, and values. As the Descartes study emphasizes, elevating your delivery game is now essential to boost satisfaction, protect margins, and win long-term loyalty from Generation Z. In a maturing e-commerce landscape, the Gen Z factor may be the decisive edge – smart delivery strategies will help ensure you’re on the winning side of that equation.