MEMPHIS, Tenn. Nov. 19, 2025 – FedEx Corp. (NYSE: FDX) today released its 2025 Holiday Season E-Commerce Trends report in collaboration with C Space, revealing that nearly all large U.S. retailers (97%) surveyed plan to use AI to enhance the shopping experience this holiday season. Retailers are expected to incorporate AI tools including chatbots for improved customer service, audience targeting, inventory management, and pricing optimization.
Survey Highlights
• AI is enhancing online shopping for retailers and consumers: AI and personalization are at the forefront for large businesses as consumers prioritize free shipping, flexible return policies, and avoiding shipping fees. Retailers seek to personalize the shopping experience by leveraging past customer behavior to make recommendations and incorporate AI chatbots, tools for audience targeting, inventory management, and more. On the consumer side, four in 10 plan to use AI this holiday season primarily to find the best deals, get gift ideas, compare product features, and research brands.
• Cost and returns shape decisions: Shipping costs (82%), promotions (74%), and return policies (54%) are the top factors influencing where consumers shop. Returns are especially influential this season, as 65% of shoppers expect retailers to offer free return options, reinforcing the importance of a seamless post-purchase experience.
• Merchant return policies are split by size: Thirty-six percent of merchants are offering free returns or exchanges within 30 days and 26% are not offering any free returns or exchanges. This difference is driven primarily by the size of the business. Eighty-four percent of large businesses offer free returns or exchanges for up to two months, while 37% of small and 39% of medium businesses do not offer free returns or exchanges.
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