The pandemic-fueled e-commerce boom is winding down. While retailers keenly recollect when e-commerce sales penetration in the U.S. more than doubled to about 35% in 2020 — roughly the equivalent of 10 years’ growth in a single year — online purchasing growth today is slowing. In the U.S., e-commerce sales are projected to grow by 6% annually, a far cry from the 18% to 20% growth seen during the pandemic years.

Although retail spending surged 1.7% in March as consumers rushed to beat the incoming tariffs, sales growth at U.S. retailers slowed sharply in April, rising only 0.1% over the previous month. Indeed, retailers are facing the sting of dampening demand, as consumer confidence deteriorates and shoppers contemplate the tangible impacts of tariffs and economic uncertainty on their wallets. 

In parallel with slowing growth, e-commerce retailers, especially those sellers heavily reliant on Chinese imports, must find ways to offset the increased cost of goods sold caused by rapidly evolving tariffs, and the elimination of the de minimis exemption from Customs duties for individual packages under $800 in value. Geopolitical unrest and supply chain disruptions are also throwing a wrench into fulfillment operations, impacting revenue stability. Despite these challenges, retailers have cause for optimism in the form of a younger generation of consumers. 

The Promise of Youth

The brightest light on the e-commerce horizon is the Gen Z and younger Millennial cohort — consumers aged 18-35 years. Fully at home in today’s digital landscape, online buying is a fundamental part of younger consumers’ shopping experience, with Gen Z expected to account for nearly 20% of global spending in 2030.

The 2025 Descartes study examining the e-commerce buying behavior of 8,000 North American and European consumers found that, in a slower-growing e-commerce market, consumers aged 18-35 years (“under-35s”) are the biggest contributor to online growth, increasing both the volume and frequency of their purchases over the last 12 months compared to 2024. 

Strikingly, while 18% of overall consumers surveyed cut back on purchases during this period, 43% of under-35s increased their spending year-on-year, compared to just 32% of over 65s. In fact, 44% of under-35s made online purchases at least every two weeks — a significant jump from 33% in 2024. 

Not only is the younger demographic driving the majority of growth in online sales, but it also offers the greatest customer lifetime value to retailers. As a result, satisfying the online buying and home delivery expectations of under-35s is foundational to continued growth — yet getting it right can be a complex and nuanced task. 

Younger shoppers’ hold high e-commerce and delivery expectations, placing great importance on the cost of delivery (71% of survey respondents), security (77%), and delivery tracking (72%). Like most shoppers, this cohort expects their purchases to be delivered on time, in good condition and backed by an easy returns process.

Eco-friendly deliveries and a company’s commitment to sustainability are also of particular importance to younger online buyers. While only 9% of all consumers consider a lack of environmentally friendly deliveries a barrier to future online purchases, 40% of under-35s are interested in receiving a sustainable delivery option, compared to just 23% of over-65s.

Delivery Disappointment

Unfortunately, e-commerce merchants are still struggling to meet the delivery expectations of under-35 shoppers in 2025. Although home-delivery performance by retailers and their delivery partners has improved slightly over the past few years, according to the recent Descartes 2025 study “How Smarter Delivery Wins Younger Consumers as Online Buying Slow,” levels of consumer dissatisfaction remain high for younger buyers. Only 11% of under-35s reported being always satisfied with their online delivery experience, compared to 22% of over-65s. 

It’s easy to see why younger consumers aren’t satisfied with e-commerce delivery performance: While just over half (53%) of over-65s — and 66% of all consumers — experienced delivery issues during the three-month period surveyed, an alarming 79% of under-35s had a problem with their delivery. 

Whether dealing with late or wayward deliveries, damaged packages or parcels delivered to an unsecure location, under-35 consumers reported a higher percentage of negative experiences than overall respondents. This poor performance from fulfillment to delivery damages brand loyalty and customer retention, increases costs associated with customer acquisition, and ultimately translates to shrinking profits, especially given the tight margins under which most retailers operate.

Retaliation Hurts the Bottom Line

The bad news for retailers continues. Hand-in-hand with high expectations, Gen Z and younger Millennials have a low tolerance for subpar delivery performance, with 21% of under-35 buyers admitting to not ordering from a retailer again in response to a negative delivery experience.

In fact, younger consumers are significantly more likely to take action in response to delivery issues, with 79% of under-35s responding in some way, versus just 45% of over-65s. While consumers of all ages lost trust in the delivery company or retailer when things went wrong, 20% of under-35s told friends and family to avoid the retailer, and 15% posted their dissatisfaction to social media, compared to only 7% and 6%, respectively, of over-65s. And in today’s digital, socially driven sales and marketing environment, negative word-of-mouth and social posts have immense power to decimate future revenue.

Tailoring Delivery to Protect Margins

Given that effective fulfillment is a fundamental component of e-commerce, neglecting the delivery experience risks the profitability associated with long-term relationships with the younger demographic. But by making a concerted effort to understand the different buying and delivery experiences and personas of under-35 consumers, retailers can win the hearts and minds (and buying power) of the younger generation. 

Employing technology to provide both the choice of delivery options today’s consumers expect and the reliability demanded by increasingly sophisticated buyers, particularly the under-35 group, is key to mastering the delivery process. By using technology to tailor delivery options to meet the needs of various delivery personas, such as cost-conscious, environmentally friendly, speed-focused, or desiring a precise delivery window, e-commerce retailers can differentiate their brand through an enhanced delivery experience. 

For example, 60% of under-35s indicate speed is less important, and instead prioritize lowest cost (28%), a precise delivery window (18%), or the most environmentally friendly (14%) option. Accordingly, by offering younger consumers the ability to choose a lower-cost or sustainable delivery or select a narrow delivery window that they can rely on, retailers can cater to the nuanced delivery personas.

Finding opportunity amid slower ecommerce growth in 2025 is critical to ongoing profitability — and younger online shoppers are the lifeline that retailers need. However, e-commerce retailers need to recognize that poor delivery experiences can compromise their ability to take advantage of this burgeoning revenue opportunity. 

From cost to reliability, sustainability to security, failure to address the needs of this sophisticated online buying cohort is a threat to retailers’ long-term profitability. Last-mile home-delivery technology enables businesses to provide delivery options that align with the preferences and expectations of the younger generation of consumers. In the process, e-commerce retailers can create a positive delivery experience, strengthen the connection to their brand, reduce churn and driving repeat sales.

Johannes Panzer is head of marketing— global e-commerce with Descartes.