Advertisement

From Chaos to Control: UPS Capital Report Highlights How Merchants Can Win the Last-Mile Battle

Date:

Share post:

Global retail eCommerce sales are projected to surpass $4.3 trillion in 2025. As the industry continues its rapid expansion, merchants face increasing pressure to deliver faster, more efficiently, and with greater transparency—all while keeping costs in check. 

However, many are struggling to keep pace with these mounting last-mile delivery expectations. An overwhelming 85% of merchants recently surveyed say that demand for faster delivery has impacted their ability to maintain control over last mile logistics, with 42% citing major disruptions. 

The Taking Back Control:

How Merchants Can Win the Last-Mile Battle report, commissioned by UPS Capital, delves into this evolving landscape. Drawing insights from 500 eCommerce merchants and 1,000 U.S. consumers, the report examines how last-mile delivery has shifted over the past few years and what merchants need to do to regain control.

Rising Consumer Expectations for Speed and Control

Speed has become the leading factor influencing where consumers shop. Nearly a third (31%) of consumers surveyed rank fast delivery as their top priority—outpacing both cost and product selection. This demand is even more pronounced among younger consumers: 51% of Gen Z respondents prioritize quick shipping, compared to only 15% of Baby Boomers.

Personalization is also key. Nearly half (44%) of shoppers surveyed want the ability to customize their shipping preferences, and 84% say they’re more likely to buy from merchants that offer personalized delivery options.

The Brand Risk of Shipping Issues

An overwhelming 98% of surveyed merchants agree that delivery experience impacts brand reputation, with 58% ranking it among the most critical factors. This makes managing consumer’s last-mile frustrations essential as delivery issues can heavily influence purchasing decisions.

Consumers’ Biggest Frustrations in Last-Mile Delivery:

  • 38% – Late or missed deliveries 
  • 37% – Package left in unsafe locations
  • 34% – Lack of real-time tracking or updates 

Nearly two-thirds (61%) of consumers surveyed check reviews before buying, with younger generations even more cautious: 74% of Gen Z and 73% of Millennial respondents routinely research retailer reliability before hitting “buy.”

If a brand fails to resolve a shipping issue, a quarter (25%) of surveyed consumers hesitate to shop with them again, and nearly 44% of Gen Z respondents demand issue resolution before considering a repeat purchase. 

Consumers Not Sold on Social Commerce

The rise of social commerce—shopping directly through platforms like Instagram, TikTok, and Facebook—is transforming eCommerce. However, trust remains a significant barrier to widespread adoption.

Only 19% of surveyed shoppers trust social media storefronts for deliveries, and 39% have never attempted a social commerce purchase at all.

While younger consumers are more open to the trend, confidence issues persist across generations. Millennial (30%) and Gen Z (25%) respondents express the highest confidence in social storefronts, but 70% of surveyed Boomers have avoided social commerce entirely.

Take Back Control of the Last Mile

Delivery mishaps—whether from theft, damage, or delays—now affect more than just a merchant’s bottom line. They directly influence brand trust, customer satisfaction, and long-term loyalty. To stay competitive, merchants must prioritize innovation, transparency, and last-mile reliability to not just survive but thrive in the evolving eCommerce landscape.

Solutions like UPS Capital’s InsureShield® Shipping Insurance help merchants mitigate last-mile risks, ensuring they can deliver with confidence from cart to customer doorstep.

For more data and insights on how to take back control of the last mile, get the full report.

*We are licensed as an insurance broker in Ontario only and are not yet offering any services or products in other provinces, including Québec. You can find the complete insurance disclosure here: Product Disclosure.

If you would like us to let you know when we are licensed in your province, then send us an email via insureshieldca@ups.com, and we will get back to you.

Insurance coverage is underwritten by a Canadian licensed insurance company and issued through UPS Capital Canada Insurance Brokers, Limited (“UPS Capital Insurance Brokers”) – an indirect wholly-owned subsidiary of UPS Capital Corporation (“UPS Capital”). The insurance company and UPS Capital Insurance Brokers reserve the right to change or cancel the program at any time. Insurance coverage is governed by the terms and conditions, including the limitations and exclusions, set forth in the applicable insurance policy (the “Policy”). This information does not in any way alter or amend the terms or conditions, including the limitations or exclusions, of the Policy, and is intended only as a brief summary. Insurance coverage is not available in all jurisdictions. UPS Capital Insurance Brokers only issues policies of a single insurer in Canada, and receives commission on sales of insurance. An affiliate of UPS Capital Insurance Brokers reinsures a material portion of the risk insured by this insurance policy and the UPS Capital group therefore has a financial interest in the insurance program. You are not required to purchase insurance from UPS Capital Insurance Brokers and have the right to seek insurance elsewhere. In particular, your ability to ship using United Parcel Service Canada Ltd. or its affiliates is not conditional on your purchase of insurance from UPS Capital Insurance Brokers.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From Retail Insider

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Ferrari-Themed Calgary Fundraiser Offers $150,000 Trip to Italy for Children’s Diabetes Initiatives

A Calgary fundraiser is offering a $150,000 Ferrari experience in Maranello and Monza while raising funds for children's diabetes initiatives and pediatric diabetes care programs.

VIDEO: Franchise model helps Ontario bakery owner navigate economic uncertainty

Franchising can offer operational assistance such as human resources and technology support, along with brand recognition that helps create a stronger foundation for new business owners.

Jobs increase in May, unemployment rate edges down: Statistics Canada

Accommodation and food services sees employment growth while wholesale and retail trade experience decrease.

Veronica Beard Opens Third Canadian Store at Vancouver’s Oakridge Park

Veronica Beard has opened its third Canadian store at Vancouver's Oakridge Park, building on strong growth in Toronto, Montreal, and online.

Fairmont Jasper Park Lodge unveils $100M transformation

This marks the latest in a series of investments by owner Oxford Properties in Canada, where the firm has committed more than $2 billion since 2025.

Inside the Brokerage Deals Reshaping Luxury Retail in Canada

Luxury retail expansion at Oakridge Park and Yorkdale is reshaping Canada’s retail landscape as brokerages help global fashion brands secure flagship locations in the country’s top luxury destinations.

Cellzy preparing for aggressive launch in Canada

A new modern retail concept focused on accessories, electronics and repair services, is preparing for an aggressive launch phase, with plans to open five new locations in 2026.

HEAL Wellness expands across Canada and U.S., targets 100 locations by end of 2026

What started as a single Ontario location has now grown to more than 37 locations across the country.

Big City Mayors call for federal action to bolster downtowns, drive economic growth

City leaders say revitalizing downtowns is central to broader national economic goals, with impacts on employment, business activity and community well-being.

Ocgrow Group expands into luxury hospitality with launch of premium hotel division

The company’s first hotel offering is located within Greystone, a 150-acre master-planned community where Ocgrow is the largest developer and landlord.

Retail and Grocery Leaders Honoured at RCCSTORE2026 Awards Programs

Retail Council of Canada recognized retailers, brands and industry leaders at RCCSTORE2026 through its Excellence in Retailing Awards and Canadian Grand Prix New Product Awards.

Creative Production Supports Retail Growth in Canada

Brandomatic Studios helps retailers scale creative production across digital and in-store channels with consistent execution.

Daily Synopsis: Jun 4, 2026

T&T Supermarkets opening at CF Sherway Gardens, MEC owner acquires Saint John Mall, Lululemon reports slower Canadian sales, Walmart launches Walmart+ membership in Canada, and other news.

Lululemon Sees Canadian Sales Decline as North American Growth Slows

Lululemon reported declining sales in Canada and lowered its annual outlook as the retailer works to rebuild momentum in North America amid growing competition.

T&T Supermarket to open at CF Sherway Gardens

T&T Supermarket will open at CF Sherway Gardens in Toronto, taking over the former Pusateri's and Saks Fifth Avenue food hall space.

MEC Owner Tim Gu Acquires McAllister Place Mall in Saint John

MEC owner Tim Gu has acquired McAllister Place in Saint John for $64 million, expanding Smart Investment's growing Canadian shopping centre portfolio. Craig Patterson speaks with Gu in an exclusive interview.

What Best Buy Says About Consumer Spending in Canada Right Now

Best Buy's latest results suggest Canadian consumers remain cautious and value-focused, but continue spending when products offer innovation and clear value.

Walmart+ membership launched in Canada

Canada is the first Walmart market outside of the United States to launch Walmart+.

Jacques Pérusse and Daughter Scale Teaology Across Canada

Beauty industry veteran Jacques Pérusse and daughter Valérie are expanding Teaology across Canada through major pharmacy retailers.

Charcoal Group pushes ahead with expansion as restaurant sector faces uncertainty: CEO Jody Palubiski

Consumers are still spending on dining out, but have become more selective about where they choose to go.