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Free shipping ‘non-negotiable’ for consumers: FedEx study

Free shipping ‘non-negotiable’ for consumers: FedEx study
Free shipping ‘non-negotiable’ for consumers: FedEx study
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A significant 57% of consumers prioritize free shipping when purchasing online over fast delivery. That’s according to a new survey conducted by FedEx. 

81% of shoppers will increase spending to meet a retailer’s free shipping threshold.

The white paper titled, ‘Bridging the e-Commerce Divide: Meeting Consumer Demands with Merchant Offerings’, gives insight into customers’ preferences. 

It also indicates that despite “turbulent economic times,” consumers are still opening their wallets when it comes to the cost of convenience. They want their deliveries right to their doorstep, and paying for it is not an issue.

However, despite customers’ fixation on free shipping, less than half of the retailers surveyed currently offer it. 

Free shipping over fast shipping

FedEx has noticed that consumers are fixated on free shipping, so much so that they are willing to “build bigger baskets to hit the threshold,”

“[It] is a significant behavioral shift that has a sizable impact on cart conversion and average order value,” says Jason Brenner, senior vice president at FedEx. 

“As the holiday season approaches, the question is not whether retailers can afford free shipping—it’s whether they can afford not to.”

What should retailers do to give free shipping?

FedEx sees a golden opportunity in this trend. Merchants can improve sales by setting “higher but attractive minimum thresholds.”

This could encourage customers to get larger cart sizes without deterring purchases. 

What is the winning formula? FedEx has found that to secure higher conversion rates on online purchases, a business should combine the following:

  • Free shipping. 
  • Free returns.
  • Accurate tracking.
  • On-time delivery.

Here is additional information on how accurate tracking works and how to enhance on-time delivery. 

Convenience is still valuable for customers

Despite the recent economic headwinds, convenience is still something that customers are willing to pay for. 

Many customers are willing to pay for same-day or next-day deliveries if it means speed is being prioritized. 55% of consumers are willing to pay for same-day delivery, with 45% willing to pay for next-day delivery.

To read the whitepaper: [Turn browsing into buying] 

NOW READ: US consumer spending exceeded expectations, signaling economic strength

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About the author

Mia Lindeque

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.

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