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Winning in e-commerce when every sale counts The retail reckoning: Why deliveriesdefine success Retailers and brands are in a battlefor growth. Consumers are spendingcautiously, competition isintensifying, and margins areshrinking. In an era whereevery euro, pound or dollaris scrutinized, businessesmust rethink how they engage,convert, and retain customers. And yet, many overlook ahidden goldmine: thedelivery experience. Delivery is no longer just a logisticsfunction. It’s a brand experience, asales driver, and a loyalty engine. It’sthe one touchpoint that connectsbusinesses directly to their customers,transforming a routine shipment into astrategic advantage. Consumers are hesitant,but they’re still buying Macroeconomic shifts have made consumers more selective than ever: Caution is the new normal nShift and Retail Week researchshow that only 1 in 4 consumers feeloptimistic about their finances, and43% now consider themselves “value-seeking” shoppers—up from 35% in2020i. Loyalty is eroding Retail growth is sluggish Nearly half (48%) of consumers saybrand loyalty no longer influences theirpurchasing decisionsii. They will switchbrands for better deals, convenience,or service. In the UK, retail sales grew just 0.4%year-over-year in Q4 2024iii—belowinflation, signalling restrainedconsumer confidence. Rising operational costs Supply chain disruptions, increasedVAT in several European countries, andinflationary pressures mean businessesneed smarter, more efficient logisticsstrategies to maintain profitability. New opportunities in digital transformation Businesses investing in AI-driven logistics, automation, and data-driven customerexperiences are outpacing competitors by improving efficiency and meeting evolvingconsumer expectations. Declining brand loyalty in 2024 % of shoppers that changed retailers for lower price in first quarter of 2024 The takeaway? Consumers are still spending, but they expect brands to meet them wherethey are: with value, convenience, and a seamless shopping experience. Hope on the horizon Despite a diminished economic outlook, there are several reasonsBig plans for growth for optimism in retail and ecommerce during 2025:New retail business modelsare proving fruitful Several big-name retailers such asHolland & Barrett and Schwartz Grouphave hinted at ambitious growthplans in 2025iv. They recognize thatdespite bleak figures, consumers willhave money to invest in products andservices so long as they see value indoing so. Recommerce is showing promise withthe market for second-hand clothingexpected to be worth more than $35billion by 2029v. In 2024,Lithuania-based Vinted became the firstsecond-hand marketplace to becomeprofitablevi. Consumer-orientedmarketplaces such as Kleinzanzeigencontinue to tap into the appetite forsustainable shopping across Germanyand the Netherlandsvii. Strong medium-termecommerce forecasts Greater access to newtechnologies Tech innovation has exploded inrecent years with the rapid growth ofgenerative AI being the best example.The costs of some of those innovationsare beginning to fall. This will make iteasier for businesses to streamlineoperations, gain crucial data and servetheir customersviii. Forecasters predict that the Europeanecommerce market will grow from €389billion in 2024 to €565 billion in 2029ix. Deliveries as a growth engine: The power ofunified commerce Shoppers today browse, compare, and buyacross multiple channels, expecting a seamless,always-on experience. 69% of consumersnow engage in ‘ambient shopping’—makingpurchases while multitaskingx. This shiftdemands that brands connect every stageof the commerce journey—from checkout tofulfilment and returns. Gartner® identifies unified retail commerceas “the dominant strategy reshaping the retailindustry.”*Businesses that align customerexperience (CX) and logistics ensure thatfulfilment isn’t just a back-end function—it’s acore part of brand loyalty and revenue growth. But when the post-purchase experience isfragmented—late deliveries, lack of tracking, orcomplicated returns—loyalty suffers. On theflip side, a seamless delivery experience buildstrust, boosts conversions, and drives repeatbusiness. *Gartner, Quick Answer: What Is Unified Retail Commerce, and WhyDoes It Matter?, By Max Panther Hammond, 14 June 2024. GARTNERis a registered trademark and service mark of Gartner, Inc. and/orits affiliates in the U.S. and internationally and is used herein withpermission. All rights reserved. How brands can unify logistics & CX for stronger growth: •Real-time stock visibilityensures customers get accurate deliveryexpectations at checkout. •Tracking as a brand touchpointturns post-purchase updates intoengagement opportunities. •Returns as a retention tool—encouraging exchanges instead of refundspreserves revenue. •AI-driven fulfillmentspeeds up deliveries and lowers logistics costs. The takeaway? Retailers that connect front-end experience with back-end logistics d