Building resilient parcel networks for the demanding e-commerce industry

The e-commerce growth story

E-commerce is no longer a niche channel, it has become a structural pillar of global retail. Worldwide online sales rose from US $5.58 trillion in 2023 to US $6.01 trillion in 2024, and are expected to reach US $6.42 trillion in 2025 and US $6.88 trillion by 2026. It reflects strong and steady momentum on a global scale, signalling that the shift to e-commerce is here to stay.

While this global growth is universal, its impact looks very different across regions. This article compares two mature yet contrasting eCommerce markets, the UK and Australia/New Zealand, to explore how distinct geographies and consumer expectations shape logistics strategies.

In Australia and New Zealand, digital spending hit new records. Australian shoppers spent US $69 billion online in 2024, up ~12 % year on year, while New Zealand’s Q4 2024 online spend jumped 9 %, reaching 18.3 million transactions, its highest in six years.

In the UK market, online retail is firmly established. According to recent data, UK online sales hit a record £127 billion (US $158 .75 billion) in 2024, marking a 3.4% year-on-year rise and bringing online’s share of total retail to around 30%.

This sustained momentum has clear implications for parcel logistics. Higher volumes, tighter delivery windows, and rising customer expectations mean that shipping operations must scale and evolve, not just in capacity, but in flexibility, visibility, and reliability.

The change in customer expectations

In today’s e-commerce landscape, delivery is no longer a back-end logistics issue; it is part of the brand experience. For consumers in the UK and Australia/New Zealand, the expectation is clear. Speed, transparency, reliability, convenience, sustainability, and free delivery now define loyalty.

In the UK , consumers expect rapid, reliable, traceable and cost-effective delivery. According to a recent UK survey, 59% of consumers expect a typical online order to arrive within two days, and 25% expect next-day delivery. Seven in ten adults in the UK say free shipping is one of the most important criteria for them when ordering online. 

Across Australia and New Zealand, the focus shifts from speed to reliability, reach and sustainability. Vast distances and dispersed populations mean customers value dependable delivery and clear communication above all. Surveys show that over 80% of Australian shoppers cite delivery reliability as their top factor when choosing a retailer. At the same time, two-thirds prioritise easy returns, and over 55% of shoppers rate free shipping as their top delivery preference. Environmental awareness is also rising, with over half of the shoppers seeking sustainable options, even if that means slower shipping.

In both regions, the expectation is simple but demanding, highlighting that deliveries must be instant when possible, visible at every step, effortless to resolve and free whenever feasible. As a result, the “doorstep experience” has become an extension of brand equity. A smooth delivery builds trust and loyalty; a poor one undermines both in seconds.

What does this mean for retailers, distributors and 3PLs handling final mile delivery?

As e-commerce volumes surge and consumer expectations rise, the logistics landscape faces three simultaneous pressures. More parcels, faster delivery windows, and tighter cost control. Meeting all three is far from easy, especially in competitive markets like the UK and Australia/New Zealand(ANZ).

• Geographical strain in ANZ
  Long transport distances and dispersed populations make last-mile delivery inherently expensive.
• Capacity volatility
  Seasonal peaks and promotional events often inflate carrier costs by 20–30%, leaving businesses dependent on a few carriers exposed to sharp surcharges.
• Fragmented carrier networks
  Managing multiple contracts, pricing structures and compliance rules across carriers increases administrative load and error risk.
• Data and visibility gaps
  Many shippers still rely on manual routing or siloed systems, limiting their ability to reroute volume or benchmark carrier performance in real time.
• Labelling & documentation errors
  Incorrect or incomplete labels cause frequent customs delays and re-shipments for exporters, adding both cost and customer frustration.
• Returns complexity
  Managing returns remains a persistent drain on efficiency and cost. Customer expectations for fast, free, and frictionless returns often collide with fragmented workflows and poor visibility, turning reverse logistics into a major margin risk.

Collectively, these factors make it increasingly difficult to balance speed, cost efficiency, and service reliability.

Designing an e-commerce parcel network for scale

The path forward for e-commerce shippers, 3PLs, and manufacturers isn’t about simply adding more carriers or warehouse capacity; it’s about building parcel networks designed for adaptability and intelligence.

Businesses need systems that respond instantly to shifts in demand, capacity, and cost, transforming static carrier relationships into dynamic, data-driven ecosystems.

• Dynamic carrier selection
  Using performance, price, and sustainability data to automatically choose the optimal carrier for each shipment – whether the fastest, cheapest, or most carbon-efficient.
• Integrated visibility
  Unifying tracking, label generation, and carrier communications in one platform ensures customers receive consistent updates and reduces manual effort.
• Flexible routing and capacity management
  Distributing parcel volume intelligently across multiple carriers helps mitigate bottlenecks during peak periods and maintain service levels.
• Streamlined returns workflows
  Treating reverse logistics as part of the customer journey rather than an afterthought – integrating returns, documentation, and carrier coordination within the same system.
• Data-driven optimization
  Leveraging analytics to benchmark carrier performance, track cost trends, and identify efficiency gaps across the supply chain.

This approach shifts logistics from a reactive process to a proactive, data-led decision-making.
The outcome is a network that stays resilient under pressure; one that absorbs cost shocks, reallocates volume instantly, and maintains delivery performance even in volatile conditions.

Powering a scalable parcel network with sustainable performance

Building a scalable parcel network is only half the story. True success comes from powering it with an intelligent system that connects processes, provides end-to-end visibility, and enables real-time decisions for accuracy, agility, and cost control. SmartFreight operationalises this network’s intelligence, uniting carrier management, transparency, and cost discipline to deliver efficiency across every parcel shipment.

• Smart carrier selection and cost transparency
  Automatically select the best carrier for each shipment using stored rate data based on service level, delivery time, or carbon footprint. Rates update dynamically as shipment details change, giving teams clear, accurate cost visibility and stronger margin control.
• Seamless integrations for total visibility
  An extensive API framework makes it easy to connect with eCommerce, ERP, and WMS systems through partner or customer-led integrations. This flexibility brings all shipment data into one view, simplifying dispatch, billing, and carrier performance tracking.
• Branded tracking that builds trust
  Automated, branded tracking updates keep customers informed from dispatch to delivery, reinforcing brand trust while reducing service queries and missed deliveries.
• Simplified, configurable returns
  A customisable returns portal turns reverse logistics into a smooth, branded experience, automatically selecting the best carrier and improving operational efficiency.
• Operational agility and fulfilment flexibility
  Intelligent routing supports drop-shipping, time-sensitive freight, and multi-carrier optimisation, ensuring delivery reliability through seasonal peaks without inflating costs.
• Scalable, secure access anywhere
  A cloud-based SaaS model allows unlimited users and devices with enterprise-grade security, while high-volume shippers can opt for on-premise deployment for maximum speed and reliability.

By unifying carriers, data, and delivery workflows, SmartFreight helps businesses simplify operations, exceed customer expectations, and ensure profitability. It transforms parcel logistics from a cost centre into a driver of customer trust and long-term growth.

Explore more insights and learn how to build a resilient parcel network on our ecommerce delivery page, or contact us to connect with our team.