We live in a society that demands instant gratification. If inconvenienced, we become offended and disgruntled. Loyalty to retailers, jobs, and even families has become less common. Mistakes are often excuses to move on rather than opportunities to redefine success.

The same can be said for shipping.

The growing demand for fast package delivery, particularly with the rise of same-day shipping, has presented significant difficulties for retailers in managing shipping costs.

According to a recent study conducted by the global consulting firm AlixPartners, this has led to intensified competition among shipping companies competing for retail business in a market largely controlled by industry giants such as FedEx and UPS, per NBC News.

Here is more of what NBC News reported:

Retail executives surveyed say as more — especially younger — consumers demand same-day delivery, the financial payoff isn’t there.

Roughly three-quarters (76%) of retail executives surveyed by AlixPartners said delivery cost on a per-package basis has increased since last year, and three out of four said home delivery does not add to profitability. An overwhelming majority (85%) said reducing their total cost per order is the No. 1 priority for last-mile delivery.

Shippers are facing their own cost pressures. “Carriers have experienced meaningful inflation in wages, equipment, repair and maintenance, insurance, fuel, tires, real estate, health-care costs, and more,” said Marc Iampieri, global co-leader of logistics & transportation, and partner & managing director of AlixPartners. “Those costs are offset by future rate increases. There is also a macro supply-and-demand equation to consider as e-commerce growth outstrips retail growth.”

Iampieri said the recent UPS-Teamsters contract renewal is a good example of wage inflation.

To save on delivery costs, retailers are moving away from reliance on single carriers in last-mile delivery. Three out of four executives reported they are using a mix of last-mile options. To date, the shift in shipping strategy has helped FedEx, but hurt UPS. FedEx was the primary last-mile carrier cited by 42% of executives, an increase of 15% year over year. But UPS saw a decrease in retailers using it as a sole last-mile carrier, dropping from 35% in 2023 to 25% in 2024.

UPS reported weaker-than-expected profits for Q2 this week and suffered its worst single-day stock loss on record.

UPS did not respond to a request for comment by press time.