Shipping costs are climbing, and retailers are feeling the squeeze. Starshipit’s Evolving Expectations 2025 report reveals that 70.4% of surveyed retailers pinpoint shipping costs as their top challenge, driven by rising fuel prices, labour shortages, and carrier rate hikes. Add seasonal swings, Red Sea detours, and looming U.S. tariffs into the mix, and the pressure intensifies.
Yet customers still demand fast, reliable, and sustainable deliveries – leaving retailers caught between shrinking margins and rising expectations. Passing costs onto shoppers risks losing them; absorbing them erodes profits. So, what’s the way out?
The real problem isn’t just the costs – it’s the lack of control over them. Starshipit’s report shows how leading retailers are tackling this head-on, using technology to cut expenses without sacrificing quality. Starshipit CEO George Plummer advises: “Focus on whatever moves the needle.” In 2025, that means diagnosing the root causes of cost creep, making strategic choices, and leveraging data and automation to protect margins.
Here’s how retailers are transforming these challenges into opportunities.
Integrated systems and automation: Precision over chaos
Operational inefficiencies, like delivery delays and manual bottlenecks, spike costs and frustrate customers, especially during peak seasons. The report notes that 66.7% of retailers use shipping automation to streamline processes, syncing shipping software with warehouse and inventory systems.
Instead of adding to the team headcount, retailers are choosing integrated tech stacks. Arun Kumar of Cin7 explains, “Automated label printing and seamless data transfer to carriers slash errors and speed up fulfilment .” Robotics and smart sorting let lean teams handle high volumes, cutting labour costs while meeting demand. The trade-off is upfront tech investment over hiring for staff – a choice that pays off in scalability and error reduction.
Purpose-built technology enables retailers with faster, more cost-effective operations without compromising reliability – letting tech do the heavy lifting.
Multi-carrier flexibility: Choices that cut costs
Relying on one carrier locks retailers into rising rates and potential delays. The report shows that 52.8% of surveyed retailers use a multi-carrier strategy to pick the cheapest option per order.
Aaron Somerset at Starshipit highlights, “the primary benefit is adaptability”, mixing local and global carriers to dodge disruptions and match customer needs. Shipping automation helps mitigate the complexity of managing multiple carriers by unifying all options into a fully integrated platform. This isn’t a one-size-fits-all fix – it’s a deliberate choice to prioritise flexibility and keep shoppers engaged by aligning options at checkout with their needs.
Data analytics: Turning insights into action
Unexpected costs from rate increases or excess inventory erode retailer profits, often catching businesses off guard. The report finds that 46.5% of retailers track shipping metrics to measure success, leaning on data to uncover savings and maintain control. Justin Irvine of The Aggregate Co. emphasises the value: “Set clear and defined KPIs and watch your business scale with excellence.”
Analytics pinpoint slow carriers or stock issues, allowing retailers to adjust pricing or reroute shipments quickly. This reduces waste, stabilises budgets, and sharpens your decision-making with every order. It’s not about getting lost in numbers, but about turning insights into action. Businesses that harness data stay agile, transforming cost pressures into opportunities for steady, sustainable growth.
Your 2025 shipping and fulfilment playbook
Shipping costs pose a real challenge, but retailers are fighting back with integrated systems and accurate data to trim waste and keep deliveries reliable. The Evolving Expectations 2025 report lays a clear path forward, with leading retailers and industry frontrunners like Cin7, The Aggregate Co., DHL eCommerce, FedEx, and more, showing the way.
Adaptability is the primary benefit, ensuring costs and performance stay balanced. Rising expenses aren’t going away soon, but the tools to manage them are stronger than ever. Retailers are balancing customer demands with lean operations, delivering smoother processes, happier customers, and healthier bottom lines. As the report concludes, it’s about doing more with less and turning shipping into a profit centre, not a cost sink.
Want the full roadmap for 2025? Download Evolving Expectations 2025 today to get insights directly from the front lines.
Kimberley Hughes leads Content Marketing at Starshipit, blending her content expertise with a knack for cutting through the noise. She’s committed to delivering insights that help retailers thrive in an increasingly challenging environment.
