The insights for e-commerce and logistics trends in 2025 as predicted by SOTI’s latest research.

As we approach 2025, the intersection of e-commerce and logistics in Australia is undergoing significant transformation. Fuelled by evolving consumer demands, technological advancements, and sustainability concerns, the e-commerce boom and consumer demands continue to reshape logistics in Australia.

Pressure for faster delivery times, stricter data protection and more transparent operations insists that logistics service providers (LSPs) enable retailers to meet changing consumer expectations. Being able to adapt rapidly or innovate will ensure success for both retailers and LSPs.

Drawing insights from first-party research by SOTI, this article delves into the key e-commerce and logistics trends in 2025 and their implications for the industry, exploring how consumer demands shape strategies for retailers and LSPs alike.

E-commerce and logistics trends #1: Consumers will be expecting faster and more reliable deliveries

Next-day and even same-day delivery are becoming standard as e-commerce giants set the bar high. Consumers value speed and reliability, and delays can lead to dissatisfaction and lost sales. The SOTI report reveals that 82% of logistics providers are prioritising delivery efficiency, a reflection of increasing pressure to meet consumer expectations.

Impact on retailers
Retailers of all sizes are under pressure to offer expedited delivery options. This often requires decentralised warehousing strategies to position inventory closer to major urban centres, enabling quicker fulfillment.

Impact on logistics service providers
For LSPs, the challenge is managing tight delivery windows while controlling costs. The implementation of advanced tools like automated route planning and AI-driven forecasting are a reflection of increasing pressure to meet consumer expectations. Critical to achieving this is collaboration with retailers to streamline last-mile logistics.

Businesses must align their operations with these demands, focusing on:

• Investing in automated technologies for faster order processing.
• Partnering with logistics providers that offer advanced tracking and eco-friendly options.
• Leveraging data analytics to anticipate customer needs and reduce delivery times

E-commerce and logistics trends #2: Safeguarding consumer trust with renewed focus on data protection  

In the digital age, consumers are increasingly concerned about how their personal data is handled. Online shopping generates vast amounts of sensitive information, from payment details to delivery addresses. A single data breach can erode consumer trust and damage a brand’s reputation.

Impact on retailers
For retailers, protecting customer data is critical to maintaining loyalty and compliance with privacy regulations like Australia’s Privacy Act. Retailers must ensure their e-commerce platforms and integrations with logistics systems are secure. This includes encrypting data, limiting access to sensitive information, and conducting regular audits. Additionally, as data breaches often originate from third-party vulnerabilities, retailers need to partner with logistics providers that prioritise security and have robust systems in place.

Impact on logistics service providers
LSPs play a key role in handling customer data during order processing and delivery. However, the SOTI report found that 58% of employees worry about customer data falling into the wrong hands. In fact, shared or unsecured devices are a significant risk, with 67% of workers globally identifying this as a concern.

E-commerce and logistics trends #3: The rise of real-time tracking

Fast delivery isn’t enough for today’s consumers, they want visibility. Real-time tracking, accurate delivery windows, and instant updates are now baseline expectations. When asked about consumer shopping preferences, SOTI research shows that 74% of consumers expect to know where an order is at all times. Brands that can provide precise information about their customer’s order status leads to higher customer satisfaction and loyalty.

Impact on retailers
Retailers must invest in integrated order and inventory management systems that sync with logistics providers' tracking capabilities. By doing so, they can provide customers with seamless updates, reducing inquiries and boosting trust.

Impact on logistics service providers
For LSPs, mobile tracking technology is essential. With 93% of logistics operations using mobile tracking, the focus in 2025 is on reducing disruptions by optimising these systems. LSPs must offer real-time data integration with retailer platforms and provide end-to-end shipment visibility to stay competitive.

This trend emphasises the growing importance of real-time visibility across supply chains. The key benefits of real-time tracking include:

• Enhanced customer satisfaction through accurate delivery updates.
• Improved employee efficiency, with tools like advanced GPS ensuring optimal route planning.
• Reduced operational disruptions, as tracking helps pinpoint and resolve issues swiftly.

E-commerce and logistics trends #4: Empowering frontline workers to meet demand

The speed and reliability that is expected in e-commerce logistics depends greatly on frontline workers being equipped with the right tools to do their job efficiently. Customers expect seamless service, yet this is often compromised by workforce stress due to inadequate tools or training, or device downtime.

Impact on retailers
Retailers can’t afford disruptions caused by underperforming logistics. To maintain service quality, they must partner with LSPs that prioritise employee well-being, ensuring workers are equipped to meet high-volume demand during peak periods.

Impact on logistics service providers
Nearly 48% of frontline workers experience stress from technical issues, impacting morale and productivity. Providing reliable mobile devices, proactive IT support, and real-time problem-solving tools ensures their workforce can operate efficiently and meet tight schedules.

To combat this, retailers and LSPs should:

• Equip employees with reliable, employer-issued mobile devices.
• Offer comprehensive training programs to build digital fluency.
• Implement remote IT support to swiftly address technical disruptions.

Investing in the workforce ensures smoother operations and reduces the risk of talent attrition.

E-commerce and logistics trends #5: Going green must start now for e-commerce and logistics

Sustainability is no longer optional. Shoppers increasingly prefer brands that demonstrate a commitment to reducing their environmental impact, from eco-friendly packaging to carbon-neutral shipping options. Sustainability is a decisive factor for both employee retention and customer loyalty.

Impact on retailers
Retailers are rethinking supply chains to minimise environmental footprints. Many are transitioning to sustainable materials, optimising packaging, and partnering with LSPs that offer green logistics solutions.

Impact on logistics service providers
For LSPs, sustainability is a dual opportunity to enhance their brand and attract eco-conscious clients. Investments in green fleets, route optimisation to lower emissions, and energy-efficient warehouses are key trends.

The SOTI report notes that 97% of employees believe their employers are taking steps toward sustainability, with Australian firms ranking among the highest in green initiatives. LSPs need to go further to meet both consumer and retailer expectations.

Strategies for sustainable logistics in 2025 include:

• Transitioning to electric or hybrid delivery fleets.
• Optimising routes to cut emissions.
• Encouraging in-store pickups to reduce last-mile delivery impacts.

A commitment to greener operations not only enhances brand reputation but also meets growing regulatory requirements and consumer expectations.

E-commerce and logistics trends #6: Prepare for the future with automation and robotics

Consumers expect error-free, fast delivery even during peak shopping periods when order surge. As e-commerce scales, manual processes struggle to keep pace, making automation a necessity to meet these high standards.

Impact on retailers
Retailers are embracing robotics in their warehouses for faster order picking and inventory management. By leveraging IoT devices, they gain visibility into stock levels, ensuring items are ready to ship when customers place their orders.

Impact on logistics service providers
LSPs are integrating automation across operations to handle rising volumes and reduce costs. Technologies like autonomous vehicles, robotic sortation systems, and AI-driven logistics planning enable LSPs to meet consumer demands while improving operational efficiency. Automation also reduces errors, enhancing delivery accuracy.

Automation and robotics are becoming integral to logistics. Warehouses across Australia are increasingly adopting technologies like automated material handling systems and IoT-enabled devices. These innovations streamline inventory management, reduce errors, and enhance scalability.

As e-commerce grows, expect a surge in:

• Robotics for order picking and packaging.
• AI-driven forecasting tools for demand planning.
• Autonomous vehicles for last-mile delivery.

Navigating e-commerce and logistics trends in 2025

The future of logistics in Australia is a blend of technology, sustainability, and consumer-centric strategies. For product owners and logistics service providers, staying ahead means embracing innovation while keeping a pulse on consumer expectations.

At uTenant, we specialise in connecting brands with warehousing and logistics solutions that align with these trends to enable your business to stay competitive. Whether you're looking to optimise your supply chain or explore sustainable logistics options, we can help you navigate the challenges of 2025 and beyond.

Published: 18 December 2024