The lawsuits argue that the shipping companies never should have charged the fees in the first place, and that the shippers, not the government, owe the customers.
Amazon automation isn't a magic button. It's a business model, and like any business model, outcomes vary based on execution. The short answer is yes, it can be profitable. The honest answer is that it depends entirely on how it's done and who is running it.
Nine in ten retailers globally are planning to raise their spending on artificial intelligence (AI) to optimise their e-commerce operations over the next 12 to 24 months, with online delivery execution a key area of focus. A total of 38% of European retailers identify speed, tracking and proactive communication around the delivery process as areas where AI can deliver the greatest impact.
You're scrolling through an online retailer, like Amazon, Shein or eBay, and spot a shirt on sale for $40. You add it to your cart, but at checkout, a $10 shipping fee suddenly appears. Frustrated, you close the tab. But what if that same shirt was priced at $50 with free shipping? The likelihood that you would have bought it without a second thought is much higher.
When a transaction involves a cost, we instinctively weigh the downside. But when something is entirely free, we experience a positive emotion and perceive the offer as more valuable than it is mathematically. Retailers no doubt realise that offering free delivery is one of the most effective ways to stop a consumer from abandoning a digital shopping cart.
Urban logistics is entering a new era where practical technology drives meaningful results. Today, more than 55% of people live in cities, and urbanization is expected to rise to 68% by 2050, placing intense pressure on delivery networks to keep up with growing demand. U.S. e-commerce is projected to reach $1.1 trillion in sales by 2026, heightening expectations for faster and more reliable last-mile service.
The outlook for 2026 I'm watching 2026 with equal parts optimism and urgency. Optimism because consumer demand is still there. Retail sales have remained resilient in recent data. Urgency because the operating environment is only getting tighter. Coming out of FY2025, large retailers demonstrated resilience amid inflation pressure, shifting consumer behavior, and global supply-chain complexity. Walmart raised its outlook and leaned further into a model that blends physical stores, e-commerce scale, and execution discipline.
Remember grocery store runs? Amazon says those are going extinct. The company revealed that Prime members saved an average of 64 trips to physical stores last year by ordering basics online instead. That's a major shift. Groceries and household essentials now account for half of all fast deliveries to U.S. Prime members, compared to earlier years when fast delivery skewed toward purchases like electronics and clothing. Amazon has spent the past year integrating perishable groceries and prescription medications into its same-day delivery network.
2026 is already shaping up to be a challenging year. Soft seasonal peak sales through November and December last year and increased staffing costs don't give a sturdy foundation for retailers and manufacturers to build on. However, there are some significant gains to be made, especially around tech improvements. In fact, Parcelhero will be unveiling its own AI-powered tracking and messaging services this year for individuals and growing businesses.