AlixPartners survey reveals 55% of retailers now use alternative carriers to meet faster delivery demands and avoid customer churn.
Retailers are moving over a third of their last-mile delivery volume away from FedEx and UPS as consumer expectations for free shipping tighten to 2.6 days, down from 3.4 days. The shift follows rising per-package costs and pressure to retain customers, with 88% of shoppers citing late deliveries as a reason to abandon brands.
AlixPartners’ annual survey found 55% of retailers now rely on carriers outside the traditional trio of FedEx, UPS, and USPS. Executives report home delivery remains unprofitable despite cost increases, while 20% of demand is at risk due to poor service.
Amazon surpassed USPS in 2025, handling 6.7 billion parcels, a 9.8% annual increase, reflecting the broader industry pivot toward diversification.