Retail delivery is one of the key drivers of loyalty and revenue. With the economy tightening and competition increasing, Shippit released its latest State of Shipping Report to help sellers understand how to deal with the challenges of 2024.
Rising shipping costs, longer estimates, and growing demand for reliability are shaping the shipping landscape.
Rising costs for faster deliveries
Rising shipping costs are giving retailers a hard time. Surprisingly, delivery times are getting faster.
According to Shippit, from 2018 to 2024, standard shipping prices jumped from $9 to $10.26, and express shipping spiked to $14.24 from $12.
Strangely, actual delivery times have improved. They’re down to two days despite longer estimates. This means retailers and carriers are more efficient even as costs rise.
Decline of free shipping offers
Many customers will choose a specific brand due to the free shipping offer. But with the economic pressure weighing down on sellers, fewer retailers offer free shipping these days.
In 2018, 81% of retailers offered free shipping. However, that number has dropped by nearly 10% in 2024.
Free shipping thresholds have also risen by 20%. This shows retailers prioritize profitability over perks, especially as shipping costs increase.
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Same-day delivery disconnect
According to the report, there seems to be a significant disconnect between consumer demand and retail supply of same-day delivery.
60% of customers are willing to pay for same-day delivery, while only 9% of retailers offer this. Giants like Amazon set the bar high with same-day delivery, and retailers must invest in faster deliveries to keep customers.
Amazon now offers free same-day delivery to Sydney residents who are Prime members. The retail giant continues to set itself up to be the fastest delivery service in Australia.
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
