Descartes’ Annual Ecommerce Study Shows Younger Consumers Driving Online Buying Growth - but 79% Have Experienced Delivery Problems

Rhea-AI Summary

Descartes Systems Group (DSGX) has released its fourth annual ecommerce consumer sentiment study, revealing significant trends in online shopping behavior. The study shows that consumers aged 18-35 are leading ecommerce growth, with 43% of under-35s increasing their spending year-on-year, compared to 32% of over-65s. Notably, 44% of under-35s now make online purchases at least every two weeks, up from 33% last year.

However, delivery satisfaction remains a major challenge, with 79% of younger consumers reporting delivery problems, significantly higher than the 66% average across all age groups. The study, conducted by Descartes and SAPIO Research, surveyed 8,000 consumers in Europe and North America during Q1 2025, highlighting the critical need for improved delivery experiences to retain the valuable younger demographic.

Positive

• 43% of under-35s increased their online spending year-on-year
• 44% of under-35s now make purchases every two weeks, up from 33% last year
• Younger demographic represents the main growth driver for ecommerce

Negative

• 79% of younger consumers experienced delivery problems
• Overall consumer satisfaction with delivery remains low at 66%
• 18% of overall consumers cut back on purchases
• Younger demographic reports higher percentage of negative delivery experiences than any other age group

News Market Reaction – DSGX

-1.33%

1 alert

-1.33% News Effect

On the day this news was published, DSGX declined 1.33%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

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                                 
cstrohack@descartes.com  

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.

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/77f81b2d-ddd8-48b8-974d-26698f3133a0

https://www.globenewswire.com/NewsRoom/AttachmentNg/60a47827-611b-41e9-b7c0-eba8ee5e3956

FAQ

What percentage of young consumers experienced delivery problems according to DSGX's 2025 study?

According to Descartes' 2025 ecommerce study, 79% of consumers aged 18-35 experienced delivery problems, which is significantly higher than the 66% average across all age groups.

How has online purchasing frequency changed for under-35 consumers in DSGX's latest report?

The frequency of online purchases for consumers under 35 has increased significantly, with 44% now making purchases at least every two weeks, up from 33% in the previous year.

What percentage of under-35 consumers increased their online spending according to Descartes' study?

43% of consumers aged 18-35 increased their online spending year-on-year, compared to 32% of over-65s.

How many consumers were surveyed in Descartes' 2025 ecommerce study?

Descartes and SAPIO Research surveyed 8,000 consumers across Europe and North America during the first three months of 2025.

What percentage of overall consumers reduced their online purchases according to DSGX's research?

18% of overall consumers surveyed reported cutting back on their online purchases during the studied period.