The fulfillment industry has changed dramatically over the past decade, moving from slow, centralized processes to agile, decentralized networks driven by high consumer expectations and rapid technological advancements. Over recent years, consumers have increasingly demanded faster deliveries, personalized experiences and seamless integration across all their shopping channels. Businesses that want to stay ahead in competitive marketplaces must adapt to this new wave of consumer expectations by offering same-day shipping options, customized product recommendations and more.
Technology is the driving force behind many of these changes. Automation, artificial intelligence (AI) and real-time data analytics are being leveraged to help companies improve operational efficiency, manage supply chains more effectively and tailor and optimize the customer experience. As ecommerce grows, logistics companies are under pressure to meet customer demands, keep costs low and maintain flexibility.
At Cart.com, we work at the intersection of these trends in the fulfillment and logistics industry. We have a unique vantage point from which to observe the industry's direction. This 2025 Fulfillment Industry Report reflects our insights into the key trends shaping the future of retail logistics, focusing on customer expectations, company needs, costs, technology and the increasingly important role of unified commerce.
Customer expectations
Today’s consumers expect more than just products—they want a fast, personalized customer experience that aligns with their values. Retailers who fail to meet these expectations risk losing customers to competitors better equipped to deliver seamless, omnichannel experiences.
Speed of delivery
A recent survey found that 56% of consumers now expect same-day or two-day delivery as a standard shipping option and this demand shows no signs of slowing down.
As ecommerce continues to grow, retailers are under pressure to optimize their fulfillment networks and delivery processes with technologies like route planning, real-time tracking systems and warehouse automation to meet expectations while balancing costs. Speed of delivery will be a key competitive differentiator in 2025 and beyond.
Personalization
Consumers want personalized experiences. They want to feel like they have a direct and personal connection with a brand. In fact, according to a recent Forbes report, 83% of consumers are more likely to purchase if they receive personalized offers and experiences.
This shift is why retail leaders prioritize investments in the customer experience, AI and inventory management. This also includes providing options for flexible delivery windows, gift wrapping or even customized shipping methods based on customer preference.
Sustainability
Many consumers consider sustainability necessary and actively seek brands that offer eco-friendly options. A recent report revealed that 59% of consumers are more likely to purchase from a brand that prioritizes sustainability. This includes everything from sustainable packaging to carbon-neutral shipping options.
Company needs
To stay competitive in increasingly complex marketplaces and meet customer demands, companies should focus on three key areas: efficiency, flexibility and integration.
Efficiency
Efficiency is key in meeting consumer demands for fast and reliable delivery. Companies must make greater efforts to streamline their operations across all levels of the supply chain, from inventory management to last-mile delivery and warehouse automation.
- Inventory management: The need for real-time, accurate inventory tracking has never been more critical. Retailers must implement solutions to manage stock levels effectively, predict demand and reduce out-of-stock situations. According to recent data, 60% of retail leaders are focusing on improving inventory accuracy for 2025.
- Last-mile delivery: Last-mile delivery is one of the most costly and complicated aspects of the shipping and delivery process. Companies must constantly strive to reduce costs while maintaining quality and speed of service. To address these challenges, Cart.com recommends implementing advanced delivery technologies and investigating eco-friendly solutions to reduce costs.
- Warehouse automation: Automation is essential for many companies to keep pace with increasing order volumes. Our recent survey shows 82% of retail operations leaders see warehouse automation as crucial for achieving operational agility in 2025 but only 71% have a finalized automation plan.
Flexibility
Flexibility is essential to cope with shifts in consumer behavior, economic volatility and unexpected supply chain disruptions. We recommend using flexible fulfillment strategies that can accommodate changes in customer behavior. Businesses must be able to pivot quickly to meet new demands.
Further, companies must be able to scale their operations up or down as needed while still providing a high level of service. Investing in flexible technologies and processes, like cloud-based systems and on-demand warehousing, can provide the agility required to navigate future challenges.
Integration
One of the biggest challenges companies face today is the need for seamless integration across various systems and technologies. In 2025 and beyond, as consumer expectations become more complex, businesses must ensure their operations, from inventory management to customer service, are fully integrated.
- Omnichannel integration: Retailers must integrate their digital and physical channels into a seamless, cohesive experience. This will involve synchronizing inventory management systems with online storefronts, offering click-and-collection options and providing consistent customer service across all touchpoints. Recent research indicates that businesses delivering unified, omnichannel experiences are better positioned to meet customer demands and drive loyalty.
- Technology integration: Companies' increasing reliance on automation, AI and data analytics means that they need to integrate these technologies across their operations.
- Streamlining data flow: Well-integrated systems that enable the flow of accurate, real-time data, from warehouse management to customer service, is essential for optimizing processes, providing better visibility and improving decision-making.
Costs
Retail executives must strategically allocate funds and invest in tools and technologies that increase customer satisfaction and operational efficiency. In this section, we'll look at how retail leaders are prioritizing investments for 2025.
Budget allocation
Retail leaders are making strategic decisions about where to allocate budgets to remain competitive and manage costs. Our recent survey shows 87% of retail operations leaders plan to increase their investment in automation technologies in 2025.
Automation in areas such as inventory management, warehouse sorting and order fulfillment is helping businesses cut costs and meet growing demands for faster service.
Operational efficiency
In 2025 and beyond, companies must adopt solutions that reduce inefficiencies, improve throughput and enable better resource management. Operational efficiency is not just about reducing labor costs; it’s about maximizing the potential of existing assets—whether warehouse space, transportation routes or inventory.
- Warehouse optimization: Retailers are investing in automated systems that improve the speed and accuracy of order fulfillment. According to recent data, 80% of retailers are investing in automated storage and retrieval systems (ASRS), which can significantly improve warehouse operations efficiency, labor costs and human error rates.
- Cloud-based solutions: Cloud-based technologies can integrate disparate systems and enable businesses to operate more fluidly across departments. Cloud-based inventory and order management systems can help companies optimize inventory levels, reduce stockouts and streamline order processes.
- AI-powered analytics: Forbes notes that 55% of retailers already use AI to improve demand forecasting. AI-powered tools can forecast demand, optimize supply chain routing and predict disruptions, helping retailers make more informed decisions and reduce costs.
Technology
The fulfillment industry is rapidly changing, driven by emerging technologies and the need to meet customer demand. Several key technologies are emerging as vital tools for success. This section will explore how AI & automation, data analytics and cybersecurity are expected to shape the future of fulfillment and logistics.
AI & automation
AI and automation are at the forefront of transforming the logistics and fulfillment industries. One of the primary applications of AI in fulfillment is inventory management. AI-powered tools are being used to predict demand, optimize stock levels and improve inventory accuracy. It’s also playing a crucial role in optimizing delivery routes.
Further, automated systems, whether automated guided vehicles (AGVs), robotic arms or conveyor systems, are helping businesses speed up picking, packing and sorting, leading to faster order fulfillment and reduced labor costs.
Data analytics
The ability to gather, analyze and leverage real-time data is enabling businesses to make smarter business decisions.
- Real-time tracking & visibility: Real-time data allows businesses to track the progress of orders, shipments and inventory, offering unparalleled visibility into the supply chain. According to a recent report, 85% of logistics companies are investing in real-time tracking systems to improve supply chain visibility and provide customers with up-to-date information on their orders.
- Predictive analytics for demand forecasting: As more companies adopt predictive analytics tools, they will be better equipped to respond to shifts in consumer preferences and market changes. Analyzing historical sales data, consumer behavior and market trends with AI-powered tools can enable companies to optimize inventory levels, avoid stockouts or overstocking and reduce waste and costs.
- Optimizing operations: Data analytics is also used to optimize internal operations, such as warehouse management. This approach can improve operational efficiency, reduce costs and lead to faster delivery times.
Cybersecurity
As businesses continue to digitize and use advanced technologies, cybersecurity has become a necessary consideration in the fulfillment and logistics industry. Using cloud-based platforms, AI, IoT technologies and more has significantly increased the risk of cyber threats.
- Protect customer data: Data is a prime target for cybercriminals. With the rise of ecommerce, companies are handling large amounts of sensitive customer data, including payment information, personal addresses and order histories. According to a recent industry report, 63% of businesses have reported increased cyber threats over the last few years. Companies must invest in effective cybersecurity measures to protect their customers and safeguard operations.
- Secure supply chain systems: Businesses must also focus on securing their supply chain systems, whether investing in cybersecurity technologies or working with 3PLs, like Cart.com, that provide government-grade security systems that ensure data remains safe, operations run smoothly and customers are not impacted by cybercrime.
- Comply with regulations: With stricter data privacy regulations, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the U.S., businesses must comply with the latest security standards.
Unified commerce
Unified commerce is emerging as one of the most transformative trends in the retail and logistics industry. The demand for seamless integration between online and offline experiences has never been greater. In the following section, we’ll explore central components of unified ecommerce.
Omnichannel operations
Omnichannel operations—where companies integrate their sales channels to offer a unified shopping experience—are essential to meeting customer expectations in 2025 and beyond.
- Integration: The key to success in omnichannel retail is the seamless integration of digital and physical channels. Businesses should use a unified commerce strategy to ensure customers can interact with their brand via multiple touchpoints, whether it’s through an ecommerce site, a mobile app or physical store, and experience the same quality of service
- Click-and-collect: One of the most popular online purchase options in omnichannel operations is the “buy online, pick up in-store” (BOPIS) model. This allows consumers to shop online and pick up their orders at a physical store. Recent research reveals that 56% of consumers prefer BOPIS because it saves them time and shipping costs.
- Personalized customer experiences: Whether a customer is browsing online or shopping in-store, their previous interactions with a brand should be tracked and used to customize recommendations, offers and promotions.
Inventory and order management
Unified commerce relies on flawless inventory and order management. To provide customers with accurate information on product availability and fulfillment options, businesses must integrate inventory systems across ecommerce platforms and physical stores.
- Real-time visibility: Inventory should be tracked in real-time across all channels, ensuring that whether your customers shop online or in-store, they see the same accurate product availability.
- Centralized order management: Centralizing order management will ensure customer orders, whether online or in-store, can be fulfilled from the most efficient location
- Focus on efficiency: By integrating inventory and order management systems, businesses can streamline operations, reduce errors and costs and scale more easily as they expand their omnichannel offerings.
Consumer expectations for seamless integration
Consumers today expect a smooth and integrated shopping experience, whether online or in-store. Unified commerce is essential for meeting these expectations.
- Omnichannel convenience: Consumers expect to engage with a brand in whatever way is most convenient, whether shopping online, using a mobile app or walking into a physical store. Unified commerce is enabling retailers to deliver a cohesive experience across all channels, allowing customers to choose how and when they shop.
- Consistency across touchpoints: Whether a customer interacts with a brand through a website, app or physical store, they expect the same consistent experience. This means that promotions, pricing and product availability should be consistent across all channels.
- Faster and reliable fulfillment: With unified commerce, retailers can ensure that orders are processed and shipped promptly, whether from a warehouse or a local store.
Conclusion
The next few years promise significant changes in the fulfillment landscape, driven by new technologies, changing consumer behavior and expectations and integrated digital and physical channels. We encourage our readers to consider how they can implement these insights into their strategies to stay ahead of industry trends and thrive in increasingly dynamic markets.
As businesses adapt to incoming market shifts, they will need strong partners who can guide them through the complexities of modern retail logistics. At Cart.com, we are uniquely positioned to help businesses navigate these changes and are committed to helping our customers succeed in the future of retail fulfillment.
If you would like to request a PDF copy of this industry fulfillment report, you may do so here.
If you would like to speak with someone about optimizing your own fulfillment strategy, reach out to one of our experts here.
