Consumers in the US hate paying for shipping

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RetailMeNot have released research showing that consumers in the US hate paying for shipping and prefer free shipping over expedited shipping, putting more pressure on retailers to offer competitive delivery deals. They have though also insisted they’d still prefer fast shipping around Christmas with 81% of Americans expecting expedited delivery options over the festive period as 44% admit they will leave everything to the last minute.
RetailMeNot findings:

  1. Politics will impact retailer strategies, but consumers don’t care as much as retailers expect.
  2. Consumers would rather get free shipping over expedited shipping, putting more pressure on retailers to offer competitive shipping deals.
  3. Shoppers prefer the lowest shipping cost over an eco-friendly shipping option.
  4. To avoid paying for shipping, most consumers would go in-store to purchase an item.
  5. Consumers expect retailers to provide expedited shipping options during the holiday season, resulting in less pressure to shop early
  6. White-glove concierge service is a “nice to have” — for now.
  7. Retailers are peeling back their investments in mobile and social advertising.
  8. Credit card rewards are undercutting retail loyalty programs.
  9. Few consumers have signed up for subscription services, despite early adoption by millennials.
  10. Amazon Prime Day may be the new Black Friday, with consumers saying they found better deals in July 2019 than on the historic shopping day in November.

The findings tell us that consumers would rather have free shipping in almost any situation, they’d even choose free shipping over saving the planet. It isn’t that they don’t want to do their bit for sustainability, it’s simply that a free delivery service meets consumer needs and consumers are used to being spoilt for choice, thanks to Amazon. Interestingly though despite 71% of consumers preferring lowest price over eco-friendly shipping, 51% of customers are happy to wait a little longer for items with an eco-friendly shipping service. Consumers don’t ask for much, do they?

3 Responses

  1. You have to laugh…. There is no such thing as free shipping. The price is included in the product.

  2. Dan Ariely has some very interesting publications and talks that go into the psychology of how buyers perceive “free”, especially in his book Predictably Irrational. Knowing how that is interpreted by the public and the perceptions that are going to happen can help you determine what is best for your business and optimize your traffic and sales. Even if you don’t think it’s important for your selection perspectives, knowing how the general public sees those promotions can help you select the best path for your products.

    https://www.ted.com/speakers/dan_ariely

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