Customers are increasing the size of their baskets in order to qualify for free shipping.
While most retailers already know that their customers desire free shipping, what they might not know is that today’s consumers are willing to wait longer periods of time to get it. While providing both free shipping and fast shipping are important, a surprising 74% of shoppers generally prefer free or cheaper shipping options over fast shipping. But this doesn’t mean that they’re willing to wait too long.
Without choices and because of expensive costs, customers are jumping ship and abandoning their shopping carts. They’re also abandoning because of the following reasons: the absence of a free shipping option, slow shipping estimates and being unaware of the shipping costs. According to ProShip’s 2017 State of Shipping in Commerce report, 82% of shoppers think that shipping costs are too expensive. Since most customers choose to pay for regular shipping, expectations from these ‘purchases’ are high, i.e. they expect their order to be delivered on-time and within five days or less.
The report also shows that 65% of shoppers will actually increase the size of their basket in order to qualify for free shipping, presenting that consumers are more interested in getting a better deal on shipping rather than getting their shipments faster. Even when it comes to convenience, many shoppers will still choose the cheaper shipping option. For instance, an average of 33% of shoppers will choose click and collect [one of the 5 Customer Profiles that Retailers Must Know About], because it’s free as opposed to shipping to their home.
While free shipping is obviously important to offer, that doesn’t mean that shipping options such as hyperlocal or next day aren’t desired as well. Shoppers are still willing to pay for the convenience of speed-related delivery services, but only a few retailers are currently offering them.
Retailers need to make sure they provide shoppers with the options that they expect so they don’t lose out on sales to their competitors. With only 22% of local retailers offering free shipping as a retention tactic, there’s plenty of room to compete.