Quick! Name the three biggest factors affecting the supply chain in recent history. Easy, right? COVID-19, Amazon, and AI/ML. You understand intimately how each of the three has changed the way you approach your transportation and supply chain operations. But how much are you looking at consumer behavior and expectations when developing your logistics and transportation plans?

A 2024 proprietary McKinsey survey of more than 1,000 US consumers showed some marked differences in consumer expectations compared to 2022.

·Less prioritization of speed. Ninety percent of consumers are willing to wait two or three days for deliveries — especially if it means avoid shipping costs.

·More sensitivity to costs. Ninety percent of consumers are likely to abandon shopping carts that feature high shipping costs for standard items.

·Emphasis on reliability. Consumers might be willing to trade off slightly slower delivery speeds for more assurance that packages will arrive on time within the promised delivery window.

·Demand for optionality. Consumers place importance on flexible delivery options and return policies.

·Interest in sustainability. More than one-third of consumers are willing to pay an additional one or two dollars for more sustainable shipping.

Each of these consumer expectations should be directly shaping your transportation strategy in 2025 and beyond. Here’s a closer look:

1. Speed and Reliability: The New Balance

Consumers increasingly expect fast and reliable delivery services. The rise of e-commerce giants like Amazon has set a high bar for delivery times.McKinsey found 90% of US online shoppers expect two- to three-day shipping and that almost half will shop elsewhere if delivery times are too long. To meet these expectations, you need to optimize your supply chain operations, invest in advanced logistics technologies, and partner with reliable carriers.

What this means for your transportation strategy:

·Invest in Last-Mile Optimization: Route planning software can improve delivery efficiency without increasing costs.

·Adjust Delivery Options Based on Product Type: High-value or time-sensitive items may still require expedited shipping, while others can leverage economy shipping models.

·Increase Distribution Network Density: More localized fulfillment centers reduce transit times without requiring faster transport speeds.

2. Transparency and Communication Matter More Than Ever

Modern consumers value transparency and real-time communication. They want to know the status of their orders at all times. Implementing tracking systems and providing regular updates can enhance your customer satisfaction and build trust.

What this means for your transportation strategy:

·Offer Live Tracking & Notifications: Visibility tools powered by IoT and GPS tracking can provide real-time location data.

·Proactively Communicate Delays: Inform customers about potential disruptions. You’ll build trust even in unpredictable situations.

·Automated Customer Updates: AI-driven chatbots or automated email/SMS updates can reduce customer service inquiries and improve satisfaction.

3. Cost Sensitivity: The Free Shipping Dilemma

While free shipping remains a strong incentive, consumers are becoming more strategic about their spending. Shopify notes 58% of consumers would stop buying from a brand after three shipping delays.

What this means for your transportation strategy:

·Offer Tiered Shipping Options: Providing consumers with economy, standard, and expedited shipping choices aligns with different budget needs.

·Use AI to Optimize Shipping Costs: AI-driven logistics management can dynamically select the most cost-effective carrier per shipment.

·Consolidate Shipments Where Possible: Encouraging bulk ordering or optimizing multi-item shipments can help your business reduce per-package shipping expenses.

4. The Rise of Sustainable Transportation

Environmental concerns are becoming more prominent among consumers. Many prefer to support companies that prioritize sustainability. A 2023 survey found 66% of US consumers are willing to pay more for sustainable products. Incorporating eco-friendly practices, such as using electric vehicles or optimizing delivery routes to reduce carbon emissions, can help you attract environmentally conscious customers.

What this means for your transportation strategy:

·Invest in Greener Logistics Solutions: Consider using electric vehicles (EVs), optimizing truck loads, or leveraging rail freight to cut emissions.

·Offer Carbon Offset Options: Give customers the ability to offset emissions with their purchase.

·Minimize Packaging Waste: Reducing box sizes and using recyclable materials contributes to your sustainability efforts.

5. Personalization and Flexible Delivery Options

Personalized experiences are highly valued by today's consumers. Tailoring delivery options to individual preferences, such as offering same-day delivery or flexible time slots, can significantly improve customer satisfaction.

What this means for your transportation strategy:

·Implement Delivery Time Slot Selection: Allow customers to choose specific windows for package drop-offs.

·Enable In-Store and Curbside Pickup: Retailers like Target and Walmart have seen increased engagement with click-and-collect services.

·Develop Subscription-Based Delivery Models: Amazon’s Subscribe & Save model has shown how recurring deliveries can enhance customer retention.

6. Cost Efficiency: Balancing Affordability & Service Quality

While speed and personalization are important, cost remains a critical factor. Consumers expect competitive pricing without compromising on service quality. You must find a balance between offering affordable shipping options and maintaining efficient operations.

As supply chain costs fluctuate due to fuel prices, labor shortages, and increased e-commerce demand, you must refine your transportation strategy to remain cost-efficient without sacrificing service levels.

What this means for your transportation strategy:

·Offer Cost-Effective Shipping Solutions: Tiered pricing models can help you cater to different customer expectations.

·Optimize Carrier Selection: AI-powered logistics tools can select the most cost-efficient carriers and routes.

·Reduce Last-Mile Costs: Leveraging localized distribution networks can lower expenses while maintaining service quality.

Adapting to Consumer Expectations

To stay competitive, you must continuously refine your transportation strategy based on shifting consumer demands. Focusing on flexibility, cost-efficiency, and sustainability will ensure long-term success in a rapidly evolving market.

It's worth taking a step back to reassess whether you're providing the right level of service for your customers — too much, and you're incurring unnecessary costs; too little, and you risk losing business. Striking the right balance can not only improve customer satisfaction but also enhance margins and long-term retention.

Berkley Stafford is CEO, TransImpact.

This article originally appeared in the March/April, 2025 issue of PARCEL.