The retail sector across Australia and New Zealand is undergoing a generational shift. Online shopping is deeply embedded in everyday life, driven by evolving consumer habits, accelerated digital adoption and global heavyweights like Amazon. Once an afterthought, delivery is now a battleground. Whether it’s speed, cost, convenience or sustainability, delivery has become a driver of customer loyalty, brand trust and business growth – for retailers and carriers alike.
As shopper expectations grow, so too does the pressure on retailers. And as the pressure on retailers grows, so too does the pressure on carriers. Carriers and retailers don’t operate in silos – they’re intrinsically linked. From last-mile costs to capacity issues, evolving consumer demands to sustainability pressures, carriers and retailers are facing a battle for survival. For those who treat it as a priority, delivery could be their salvation.
Against that backdrop, we sought to provide the clearest picture yet of ‘The State of Shipping’. Based on an analysis of hundreds of millions of deliveries from over 4,000 ANZ retailers and surveys of retailers, carriers and consumers, here’s what it found:
Same day delivery demands are rising, as costs fall
As customer demand for same-day delivery increases, so does the number of retailers and carriers offering it. Subsequently, same-day delivery is becoming more accessible and affordable than ever, bucking the trend of rising costs for standard and express delivery. As a result of more efficient fulfilment models, better use of the gig economy and route optimisation technology, the cost of same-day has almost halved since 2018 (down from $31 to $17.39).
In response to the Amazon effect, retailers are rethinking fulfilment. Increasingly, stores are being transformed into local distribution hubs, enabling same-day delivery. One in five ANZ retailers (20.7%) plan to invest in ship-from-store capabilities in the year ahead, opening the door for more same-day delivery for consumers. Likewise, 71% of carriers are noting an increase in same-day demand. For Uber Direct, for example, same-day delivery is shifting from a “premium service” to a “practical solution”, as customers increasingly prioritise speed and convenience.
Green intentions
Never before has sustainability been more important. Scrutiny of the vast and sprawling retail supply chain is growing. According to Monash Business School’s Australian Consumer and Retail Studies Unit, half of Australian shoppers now actively consider sustainability when purchasing.
Retailers are taking note. In New Zealand, 27.8% are promoting their sustainable values on their site, but Australian retailers have ground to make up, with just 12.4% following suit. In 2024, just 10% of retailers were prioritising sustainability. While it was acknowledged as important, long-term environmental impacts were being deprioritised in favour of immediate operational focuses. In 2025, that increased marginally to 12%. Sustainability is no longer a nice-to-have; it’s essential, especially as more retailers must report on ESG outcomes.
And for carriers, it’s just as essential. Growing demands for sustainable shipping options have influenced all surveyed carriers. However, for all carriers, the influence has been ‘minor’ or insignificant. Over half (57%) said the demand for sustainable or eco-friendly shipping options had increased. But to what extent are carriers meeting these increasing demands?
For 57%, up to 10% of their fleet uses alternative fuels or electric vehicles. For 14%, up to half of their fleet uses alternative fuels or electric vehicles. But for twice as many, none of their fleet does. While not all leverage sustainable vehicles and fuels, many are deploying sustainable strategies, for example, route optimisation to reduce emissions.
And while none of the surveyed carriers offer carbon-neutral or carbon-offset programs, many are finding other ways to improve sustainability, like investing in electric vehicles or bikes, parcel lockers, waste reduction, water conservation and circular economy initiatives.
Preparing for peak season
Peak season is now a strategic battleground for growth and customer retention. Economic pressures have led many households to tighten their belts, resulting in long stretches of subdued discretionary spending. Retailers have felt the impact, with softer consumer activity throughout much of the year, before a demand surge during peak shopping moments.
In 2023, the Black Friday/Cyber Monday weekend broke records. In 2024, it grew even further. Australians made 15% more purchases during the four-day window. And they didn’t just buy more – they spent more per purchase. The average basket value jumped from AUD$123.90 to AUD$130.90. We’re gearing up for a bumper 2025, with Black Friday continuing to evolve into a so-called Black November, with longer sales windows, larger discounts and surging volumes.
For retailers to meet the heightened demand, carriers play a critical role. All carriers have increased their capacity in the last 12 months, with 57% doing so slightly, in the 1-9% region, and a further 43% increasing theirs in excess of 20%. Many carriers are tapping into bigger workforces, extending operating hours, partnering with third-party carriers and leveraging advanced forecasting and planning technology. Retailers are under pressure to meet expectations on speed, convenience and sustainability, and they’re looking to their carrier partners to help them deliver on their promises, especially when it matters most.
It’s not just same-day delivery, sustainability and peak season that are influencing the supply chain in 2025. As our State of Shipping Report found, AI adoption is surging. Fulfilment models are changing. Returns are being scaled back. Free shipping is becoming more scarce. Amazon is influencing shoppers, retailers and carriers alike. Whether you’re a retailer or carrier, the story is the same: delivery has never mattered more. It’s not a cost centre, it’s a growth lever as well.
To explore the full findings, visit Shippit.com to download the State of Shipping 2025 report.
Co-Founder and Joint CEO | Shippit
Rob Hango-Zada is the Co-Founder & Joint CEO of APAC’s fast-growing shipping platform, Shippit. He brings a common-sense & customer-centric approach to Australian retailing. Having spent a decade working for the world’s leading FMCG businesses (Procter & Gamble, Unilever) across Asia, Rob has vast experience in converting customer insight and analytics into growth driving strategies for retailers such as Woolworths, Coles, Tesco & Priceline and numerous global brands. Rob’s frustration as an online shopper drove him to co-found Shippit with William On to enhance the post-purchase experience from cart to doorstep and back again. Shippit now powers delivery for leading Australian retailers such as Target, Cotton On, Big W, Nike and more. Outside of work, Rob is a big fan of bold red wine, fancy socks and good design
