Five Lessons Every Retailer Can Learn About Last-Mile Delivery

A new report from DS Smith shows just how much pressure last-mile delivery puts on e-commerce businesses. Rising delivery and returns costs and growing consumer expectations are squeezing margins and forcing companies to rethink packaging, operations, and partnerships.

The survey of 550 e-commerce decision-makers across Europe clearly shows that retailers can’t keep doing business as usual. Here are five key takeaways from the report that logistics and supply chain leaders need to know.

1. Packaging Waste Is Still a Major Problem Oversized boxes and excess packaging remain the top complaints. Many e-commerce businesses use a one-size-fits-all approach that doesn’t match the product, leading to wasted space, higher costs, and customer frustration. DS Smith says 73% of consumers now expect sustainable packaging, yet only 28% of businesses say they’re fully meeting that expectation.

2. Returns Are Fueling Emissions and Eating into Profits Returned packages don’t just cost money—they leave a carbon footprint. According to the report, the average return produces 1.2 kg of CO₂, and 84% of companies say delivery-related costs rose last year. Those costs push some retailers to charge more for shipping, raise product prices, or cut back on sustainability efforts—moves that risk turning off customers.

3. Shoppers Still Want Speed—but Also Flexibility and Less Waste Fast delivery remains important, but it’s no longer the only thing that matters. 69% of consumers want more flexible delivery options, and 62% want packaging that’s easier to recycle or throw away. DS Smith notes that only a third of retailers feel they’re meeting expectations around delivery speed, even when it’s paid for.

4. Poor Packaging Can Damage Customer Loyalty First impressions matter; in e-commerce, the box is part of the experience. A bad unboxing moment—whether it’s too bulky, hard to open, or wasteful—can hurt brand loyalty. According to