With the pandemic-driven ecommerce surge now stabilising, UK retailers face a tougher market environment while also navigating supply chain pressures. Although online retail has eased from its 2020 peak of 32.5% of total sales, ecommerce still accounted for 26.5% in 2022 – more than double the level seen a decade earlier. The UK ecommerce market is forecast to reach around £125.3bn by the end of 2025.
However, retailers reliant on Asian imports are managing rising costs due to shifting tariffs and geopolitical disruption, along with ongoing challenges in fulfilment and delivery performance. According to Johannes Panzer, Head of Marketing, Global Ecommerce at Descartes, retailers can still find growth – particularly among younger consumers.
A 2025 Descartes study of 8,000 North American and European consumers found that shoppers aged 18–35 were the main contributors to ecommerce growth over the last year, with 43% increasing online spending. Nearly half now shop online at least every two weeks. This group offers strong long-term customer value but expects high service standards.
Cost of delivery, secure drop-off, tracking visibility and sustainability are major priorities. 40% of under-35s say they would prefer a sustainable delivery option, compared to only 23% of over-65s.
Yet retailers and carriers still struggle to meet expectations. Only 11% of under-35s report being consistently satisfied with delivery performance, and 79% experienced issues in the three months surveyed – significantly higher than older consumers. Delivery failures have direct commercial consequences: 21% of under-35s say they stopped buying from a retailer after a poor delivery experience, and many share negative feedback online.
To protect revenue and secure loyalty, retailers must focus on delivery reliability, flexible fulfilment options and clearer communication. Many under-35s are willing to trade speed for lower cost, precise time windows or more sustainable delivery services, meaning choice and transparency are critical.
Panzer notes that improving last-mile capability through technology and carrier flexibility will be key to winning and retaining younger customers as ecommerce growth moderates.
