2024
9
US Online Shopping: Fulfillment and Returns Market Report 2024
2024-07-02T08:02:56+00:00
REPB3A83B29_F7AB_488A_A2D8_B394C6E48701
3695
174260
[{"name":"Retail","url":"https:\/\/store.mintel.com\/industries\/retail"},{"name":"eCommerce","url":"https:\/\/store.mintel.com\/industries\/retail\/ecommerce"},{"name":"Market Intelligence Reports","url":"https:\/\/store.mintel.com\/report-type\/market-intelligence-reports"},{"name":"US","url":"https:\/\/store.mintel.com\/markets\/us-market-research"}]
Report
en_GB
The fulfillment and returns space is undergoing significant transformation as retailers strive for logistical efficiencies to meet and exceed consumer expectations. An example of such, is the increased availability of…
US
Retail
eCommerce
simple

US Online Shopping: Fulfillment and Returns Market Report 2024

The fulfillment and returns space is undergoing significant transformation as retailers strive for logistical efficiencies to meet and exceed consumer expectations.

Trusted by leading global brands

Amazon logo
Deutsch brand logo
waitrose
Bauer-Media-Group
mediacom-logo-e1438678858172 (1)
VML Logo
Epsilon Logo
VocaLink_Mastercard_logo-PNG-1
Amazon logo
Deutsch brand logo
waitrose
Bauer-Media-Group
mediacom-logo-e1438678858172 (1)
VML Logo
Epsilon Logo
VocaLink_Mastercard_logo-PNG-1
4.5 stars
Source: G2.com, Inc.
Collapse All
  1. Executive Summary

    • What you need to know
    • Consumer trends: key takeaways
    • Market predictions
    • Opportunities
  2. Market Dynamics

    • Market context
    • Market drivers
    • The US expanded by 1.6% in Q1 2024
    • Graph 1: quarterly real GDP growth, 2020-24
    • Consumer sentiment remains down, but is expected to rebound soon
    • Graph 2: consumer sentiment index, 2021-24
    • Consumer prices rose by 3.3% in May, down for the second consecutive month
    • Graph 3: headline CPI and shelter CPI, 2021-24
    • Explore flexible and resilient supply chains
    • Tech is revolutionizing fulfillment and returns
    • Eco-friendly practices can evolve fulfillment and returns processess
    • The resilience of ecommerce drives the rise of alternative carriers
  3. Consumer Insights

    • Consumer fast facts:
    • Online shopping frequency
    • Fulfillment and returns are imperative for the modern consumer
    • Graph 4: online shopping frequency, 2024 – NET
    • Be proactive about any potential friction to meet consumers expectations
    • Graph 5: online shopping frequency, by key demographics , 2024 – NET
    • Categories purchased online
    • The fulfillment process needs to be satisfactory to shoppers of each category
    • Graph 6: categories purchased online, 2024
    • DoorDash expands its partnerships
    • Personalization can enhance the fulfillment experience
    • Graph 7: categories purchased online, by gender and age, 2024 – NET
    • In their own words, consumers share what items and why they prefer to shop online rather than in-store
    • Fulfillment options used
    • The usage of next and same day delivery has increased
    • Graph 8: fulfillment options used, 2023-24
    • Expedited deliveries remain at the forefront of Amazon’s strategy
    • However, consumers don’t always need fast shipping
    • Graph 9: fulfillment options used, by online shopping frequency, 2024
    • Consumers describe their experience with expedited shipping and what would encourage them to use it
    • Homesick reminds consumers to shop on-time to avoid additional fees
    • Speed and flexibility expectations are greater in urban areas
    • Graph 10: fulfillment options used, by area, 2024
    • Online purchases returned
    • Returns are common when shopping online
    • Graph 11: online purchases returned, 2024
    • Target offers an exceptionally consumer-friendly return policy for its owned-brand items
    • Propensity to shop online leads to more frequent returns
    • Graph 12: online purchases returned, by online shopping frequency, 2024
    • Wayfair makes efforts to minimize return rates
    • Reasons for returns
    • Sometimes returns are inevitable
    • Graph 13: reasons for returns, 2024
    • Accurate size and fit are critical to minimize online returns
    • Returns of non-faulty products reflect problematic shopping behaviors for brands
    • Graph 14: reasons for returns, by race and Hispanic origin, 2024
    • Graph 15: reasons for returns, by age, 2024
    • Return methods
    • Traditional return methods are most commonly used, especially among older shoppers
    • Graph 16: return methods, by age, 2024
    • Staples accepts returns from retail partners
    • Important factors when shopping online
    • Shopping goes beyond the product itself
    • Graph 17: important factors when shopping online, 2024
    • Food52 informs consumers upfront about shipping costs and delivery
    • Flexibility and convenience appeal to heavy online shoppers
    • Graph 18: important factors when shopping online, by online shopping frequency, 2024 – NET – Any important
    • Attitudes toward fulfillment and returns
    • Free shipping is a competitive advantage, especially with older consumers
    • Graph 19: attitudes toward fulfillment and returns – free shipping, by age, 2024 – NET – Any agree
    • Consumers describe how shipping impacts their shopping decisions
    • Consumers want more control over the delivery process
    • Graph 20: attitudes toward fulfillment and returns – areas of opportunity, by area, 2024 – NET – Any agree
    • Kizik keeps shoppers informed about their online orders
    • Empathy plays a critical role in the return process
    • Graph 21: attitudes toward returns, by age, 2024 – NET – Any agree
    • Ways in which consumers believe the return process can improve
    • Uber debuts a “return a package” feature
    • Consumers are environmentally aware and expect action
    • Graph 22: attitudes toward fulfillment and returns – environmental awareness, by gender and age, 2024 – NET – Any agree
    • Fulfillment and returns are critical to keep consumers coming back
  4. Innovation and Marketing Trends

    • Amazon continues to innovate throughout the fulfillment process
    • Target debuts same-day delivery in paid membership
    • Walmart introduces an early morning delivery service
    • Opportunities
    • Key opportunities
  5. Appendix

    • Market definition
    • Consumer research methodology
    • Consumer qualitative research methodology
    • Generations
    • Abbreviations and terms
    • In their own words
Download Report Summary

Stay ahead of the curve and secure future growth for your business with Mintel’s Online Shopping: Fulfillment and Returns Market Report. The report provides a data-led understanding of the current online order fulfillment market market and opportunities within the industry for brands in the US.

Topics Analyzed

  • Macroeconomic factors impacting ecommerce, fulfillment and returns.
  • Items purchased online, and fulfillment options used.
  • Items returned and main reasons for doing so.
  • Return methods used.
  • Important factors when shopping online.
  • Attitudes toward fulfilment and returns.

US Online Order Fulfillment Market Overview

The fulfillment and returns space is undergoing significant transformation as retailers strive for logistical efficiencies to meet and exceed consumer expectations. An example of such, is the increased availability of next-day and same-day deliveries through paid membership programs, which has raised the bar for speed, providing a competitive edge.

While the evolving fulfillment and returns landscape offers substantial opportunities to drive consumer acquisition, satisfaction and loyalty, it also presents risks that require strategic agility and effective cost management. That’s the case of returns, which are common and, in some cases, inevitable when consumers shop online.

Opportunity for brands

Brands and retailers that leverage technology, and manage costs to navigate economic fluctuations while maintaining high standards of customer service and operational efficiency will lead the way in the modern retail environment.

Buy your copy of this report today and gain fresh insights into the online order fulfillment market.

Report Scope

For the purposes of this Report, this research focuses on ecommerce fulfillment and return policies within the United States, examining current trends and practices in these areas, including but not limited to standard, expedited shipping, and return windows. It does not cover international markets, but rather provides a holistic overview of the broader landscape of online shopping within the U.S.

This Report builds off analysis in Mintel’s Shipping, Delivery and Pickup – US, 2023 and Impacting eCommerce: Shipping & Delivery: Incl Impact of COVID-19 – US, September 2020.

Meet the Expert

Marisa joined Mintel in 2021 with a background in the beauty industry. She is an analytical and curious individual, who enjoys constant learning and finding the answer to the “why”. She applies this knowledge to create insightful reports focused on retail and ecommerce that provide a complete picture of a market and find new opportunities.

Logistics are increasingly important in the modern consumer journey. Companies must remain agile while balancing costs and meeting consumer expectations.

Marisa Ortega - Retail and eCommerce Analyst
Marisa Ortega
Analyst, Retail & eCommerce

£ 3,695 excl. Tax
Secure direct checkout
Instant PDF download
Portal access included
Need help deciding? Get in touch

Trusted by global industry leaders

4.5 stars
Source: G2.com, Inc.
Tenth Wave logo

Mintel helps us when we want to know something quickly – it provides fast answers to our questions. If we need to get a view of what’s going on in a particular market it’s very useful.

When carrying out background research, I find Mintel an excellent starting point.

The fact that it covers so many markets is a big plus for me– instead of having to buy specialist products in each area we are interested in, especially when we only require a brief view on a particular market, we can go to Mintel for help as a one-stop shop. I find Mintel a useful and valuable resource.

Ben Zeidler, Director - Research and Analytics, Tenth Wave
Mediacom logo

Mintel is really good for getting a handle on a particular category quickly. If we are working on a new business pitch in an area we don’t have much experience in, it’s a brilliant way to get up to speed with what’s going on, what’s changing and what the key trends are in any category.

It’s very rare now that anyone will plough through a 200-page report – that’s why the summaries are really useful. We know they are backed up by a lot of detail, so if you need to go into something in more depth you know the information will be all there for you.

Pauline Robson, Managing Partner, Mediacom
Amazon logo

Working in a customer-obsessed organization means that data and insights have to be at our fingertips. Mintel’s reports help us support anecdotes with real quantifiable insights. The summary sections (which I really like) helps save time by giving a birds eye view of the content before spending time combing through the pages.

Our business review discussions are strengthened by the relevancy of the reports to help us better understand our customers. In addition, the customer service received from the team (especially in crunch periods) makes the process of understanding customer behavior even better.

Ngozi Ngonadi-Nkwoji, Senior Marketing Manager, Amazon
Waitrose & Partners logo

We’ve found it so useful working more closely with Mintel. They helped support our recent flagship event for our top suppliers by providing a really unique viewpoint on the future of online retailing.

Nick Carroll from their Retail Team was also an excellent panelist, sharing useful and actionable consumer insights. We definitely look forward to working with Mintel again on future projects.

Zac Steele, E-Commerce Trading Development Manager, Waitrose & Partners
Bauer Media Group logo

We have such a great working relationship with Mintel on lots of different levels. As an insight partner, they have helped us to develop our business planning in specific categories as well as supporting our creative process but they’ve also been super helpful with facilitating our events in their inspirational offices near St Paul’s.

They’re an innovative company, with a client-focused team that always delivers.

Abby Carvosso, Group Managing Director, Bauer Media Group
Epsilon logo

We utilize Mintel Reports, Trends and Comperemedia to mine for insights across the numerous business verticals that Epsilon serves, such as CPG, automotive, telecom, healthcare/pharma, retail and financial services.

By integrating Mintel insight into new business opportunities, we have been able to gain the competitive edge necessary to advance partnerships with global brands and key business players.

For our organization, it’s about depth and breadth. Having one without the other doesn’t enable success in our business.

Virginia Harvey, Secondary Research Manager, Epsilon
Abacus logo

There is no question that Mintel is the go-to resource for the best quality market research, but I did not think it was an affordable option for Abacus Marketing to consider. As a small marketing agency, we only work with a few new clients each year.

However, we have a very high-end consultative approach to our work, so we really do need a partner like Mintel to provide the big agency experience we are always aiming to deliver. Our clients come from an incredibly diverse range of industry sectors, so we obviously need access to market research reports from a very wide spectrum of marketplaces – and that is precisely what we got.

Stephen Taylor-Brown, Managing Director, Abacus
VocaLink logo

We use Mintel Reports, mostly for financial services and ecommerce markets, plus a few retail and technology ones.

As a leading payments provider, we value additional insights into consumer behaviour, opinions and trends that are shaping the many different markets we operate in. Mintel is a very good and very quick way for us to obtain those insights.

We use Mintel to get a view on where a particular market is going, which can support us in product development and help us identify opportunities or indeed risks, it is a very useful barometer of a market’s potential.

 

Andrew Neeson, Market Intelligence Manager, VocaLink
VML logo

We use Mintel to inform our thinking and reinforce strategy. If you’re presenting new ideas, it’s essential they are underpinned by robust data and evidence, and clearly rooted in fact.

Mintel gives us all that. It’s a great brand and one that is trusted by clients.

Marie Stafford, European Director, The Innovation Group, VML
Wincanton logo

When I’m investigating specific sectors I tend to use Mintel reports for their forecasting, which I’ve always found to be very accurate.

They also offer really broad and deep coverage in their reports. They are very, very detailed. For example, we were able to gain insight across a wide range of business areas from just one report, proving that Mintel is excellent value for money.

So overall, it’s the level of detail and the quality of forecasting that really stand out for me.

Rebecca Green, Market Insight Manager, Wincanton
Jackman logo

At Jackman, we believe that powerful strategies are based on human insight. Mintel’s leading-edge reports and insights into consumer attitudes and behaviors are an important input as we develop and execute strategy.

Alana Gavin, VP Research and Insights, Jackman
Deutsch logo

One of the biggest challenges we face is the need to get smart on a business or category real quick.

We are talking to clients who live and breathe their category every day and the expectation is that we will be able to get caught up very quickly, and bring the thinking that can help them.

We need to do that often in a matter of days, so it’s not a small ask. Mintel gives us a very articulate view of category conditions and does so at the speed we need it.

Jeff White, Business Development Director, Deutsch