Descartes Systems Group reports younger consumers increasingly drive online purchases but face high dissatisfaction rates with home delivery services.
Quiver AI Summary
Descartes Systems Group has announced findings from its latest consumer sentiment study, highlighting how younger consumers, aged 18-35, are significantly driving growth in online purchasing despite a slowdown in the overall ecommerce market. The study revealed that while 18% of all surveyed consumers reduced their spending, 43% of the younger demographic increased their online purchases over the past year. Notably, dissatisfaction with home delivery remains a critical issue for these younger consumers, with 79% reporting delivery problems. This demographic's expectations for delivery quality are high, posing challenges for retailers and delivery services as they strive to meet consumer demands. The study, which surveyed 8,000 consumers in Europe and North America, aimed to understand changing ecommerce behaviors and the impact of delivery experiences on consumer satisfaction.
Potential Positives
- The study highlights an increase in online purchasing frequency among consumers aged 18-35, positioning them as a key demographic for future growth in the ecommerce market.
- Descartes' research identifies critical delivery issues faced by younger consumers, positioning the company as a thought leader in addressing these challenges for retailers and delivery partners.
- The findings provide valuable insights for Descartes to tailor its home delivery solutions to meet the rising expectations of the younger consumer demographic, potentially enhancing customer satisfaction and loyalty.
Potential Negatives
- High levels of dissatisfaction with home delivery among the key demographic (79% experiencing delivery problems), indicating potential challenges in retaining younger consumers.
- The report highlights that despite the younger demographic driving growth, their high expectations for delivery quality are not being met, which could impact customer loyalty.
- Warnings about the potential adverse effect on the company's business and reputation due to delivery failures risk lowering customer lifetime value in a crucial market segment.
FAQ
What is the main finding of Descartes' latest consumer sentiment study?
The study reveals that consumers aged 18-35 are significantly increasing their online purchases despite a slowing ecommerce market.
How often do younger consumers make online purchases according to the study?
44% of consumers aged 18-35 reported making online purchases at least every two weeks, up from 33% last year.
What delivery issues do younger consumers face more than others?
79% of consumers under 35 reported experiencing delivery problems, higher than the overall average of 66%.
Why are delivery experiences critical for retail success?
Negative delivery experiences may impact the potential lifetime customer value of the younger demographic driving ecommerce growth.
Who conducted the research for this consumer sentiment study?
The study was commissioned by Descartes and conducted by SAPIO Research, surveying 8,000 consumers in Europe and North America.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
LONDON and ATLANTA, May 14, 2025 (GLOBE NEWSWIRE) -- Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, released findings from How Smarter Home Delivery Wins Younger Consumers as Online Buying Slows , its fourth annual consumer sentiment study of ecommerce home delivery. The study shows that, in a slower growing ecommerce market, consumers aged 18-35 (“under 35s”) are the biggest contributor to online growth, increasing both the volume and frequency of their purchases over the last 12 months compared to the prior year. While 18% of overall consumers surveyed cut back on purchases during this period, 43% of under 35s increased their spending year-on-year compared to just 32% of over 65s (see Figure 1).
Figure 1. Changes in online purchasing behavior
In addition, this year’s survey found that 44% of under 35s made online purchases at least every two weeks—a significant jump over last year’s 33%. For the younger demographic, however, their levels of dissatisfaction with home delivery remain high with a significant 79% reportedly experiencing delivery problems compared to 66% of overall consumers surveyed.
Moreover, for each delivery problem detailed in the survey, under 35s reported a higher percentage of negative experiences than overall respondents (see Figure 2). Conversely, over 65s reported a lower percentage of negative experiences than all respondents. Not only is the younger demographic the cohort driving growth in online purchasing, it also appears to be the group with the highest expectations for positive delivery experiences.
Figure 2. Issues with home deliveries
“The bottom-line impact of negative delivery experiences remains a pressing concern for retailers and their delivery partners, especially with the pace of ecommerce growth steadying post-pandemic,” said Mavi Silveira, SVP Global Marketing at Descartes. “While small improvements in home delivery performance have been made over the past few years, they’re not currently reflecting the quality experience consumers are demanding, especially the valuable under 35 cohort, as poor delivery experiences risks the potential lifetime customer value of this demographic.”
Descartes and SAPIO Research surveyed 8,000 consumers in Europe and North America on their ecommerce buying behavior during the first three months of 2025. The goal was to gain a comprehensive view of the state of ecommerce and home delivery performance by understanding, for example, the reasons for increases or decreases in ecommerce purchases, the different types of goods purchased, the frequency of purchases, delivery preferences, delivery experiences and the impact of delivery failures on retailers and their delivery agents. The study also examines how consumer behaviors and perceptions vary across demographics. For the full report, read How Smarter Home Delivery Wins Younger Consumers as Online Buying Slows .
Learn more about Descartes’ Home Delivery Solutions and its Ecommerce Shipping & Fulfillment Solutions .
About Descartes
Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world’s largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at www.descartes.com , and connect with us on LinkedIn and Twitter .
Global Media Contact
Cara Strohack
Tel: 226-750-8050
[email protected]
Cautionary Statement Regarding Forward-Looking Statements
This release contains forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that relate to Descartes’ home delivery solution offerings and potential benefits derived therefrom; and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the factors and assumptions discussed in the section entitled, “Certain Factors That May Affect Future Results” in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada including Descartes’ most recently filed management’s discussion and analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purposes of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
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