Customers expect e-commerce retailers to provide free shipping and returns. Robert Escobar, vice president of operations with Gwynnie Bee, talks about the challenges that his company faces in meeting those demands.

Avid online shoppers have raised the bar on what it takes for a retailer to stay competitive. Consumers want advanced mobile features, flexible shipping options and hassle-free returns, according to the fourth annual UPS Pulse of the Online Shopper study.

Online retailers have raised the bar for convenience and fast delivery - and brick-and-mortar retailers are scrambling to keep up. To speed order fulfillment, they are shipping from stores that are closest to customers. To build on their strengths, they are focusing on the in-store customer experience. And to bring more online shoppers into stores, they are providing Buy Online, Pick Up In-Store (BOPUS) options. At the same time, they are rapidly investing in additional inventory and store labor to stay competitive.