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Shipping Remains A Top Concern For Consumers As The Holidays Near

1holidayshippingWith the holiday season right around the corner, retailers are ramping up their efforts to give consumers the best experience across all channels. After all, as consumers become more digitally savvy and connected, they have come to demand more out of their shopping experiences.

“People have learned over the last 20 years how e-Commerce works,” noted Christoph Stehmann, Chief Operating Officer of Digital Commerce for Pitney Bowes. “They’ve gotten used to all of the options that have been presented to them, and they want them all. Now people want to be able to access the same retailer web sites on their mobile device, desktop, tablet or whatever else they have. When it comes to shipping they also want all of the options that exist out there.”

In fact, 93% of consumers now find shipping options to be an important factor in their overall shopping experience, according to the Pitney Bowes Holiday Shipping Survey. This is a significant increase over 2014, when only 23% of consumers said the same.

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ORC International conducted a survey of more than 1,000 U.S. adults on behalf of Pitney Bowes to identify consumers’ attitudes towards holiday shopping and shipping experiences. The survey was conducted online in August 2015.

As retailers gear up for the holiday season, they must measure their bandwidth and determine which order fulfilment and delivery options make the most sense for them. Stehmann recommended that retailers partner with more than one carrier for their shipping needs so they can better handle different speed requirements to different areas, especially for cross-border orders. Retailers also must ensure that they can quickly and efficiently fulfil orders from warehouses and even stores.

Although speed is undoubtedly importantly, cost trumps all other factors, according to the survey. An overwhelming 88% of consumers find free shipping with a five- to seven-day delivery to be more valuable than paying a fee for a one- or two-day delivery. Consumers are so enamoured with free shipping on purchases that 60% state they have increased their online spending in the past just to qualify for it.

“If you go to an online store and they give you free shipping starting at a $50 purchase, that is an easy incentive for people to go through and spend another $10 or $20 to make that threshold,” Stehmann said in an interview with Retail TouchPoints. “Shipping costs, particularly cross-border, can be expensive and off-putting. The signal of free shipping is something that consumers react very well to.”

Alternatively, 68% of online shoppers have previously used a promotional code or coupon to receive a shipping discount. Up to 80% of consumers say they’d be more willing to shop online online if they had a promotional code or coupon.

Discounts and sales also remain key to the customer experience, with 61% of consumers saying that they are more willing to shop online during a sales event. Another 39% said they are more willing to shop with retailers who offer a premium membership that offers faster and cheaper shipping options.

When asked to identify when they planned to complete their holiday shopping, consumers said they plan to shop:

  • Before Thanksgiving (30%);

  • From Thanksgiving through Cyber Monday (41%);

  • Thanksgiving and Black Friday (26%)

  • On Cyber Monday (17%);

  • On the weekend between Black Friday and Cyber Monday (13%); and

  • During the month of December (34%).

Consumer sentiment could easily change as the season progresses; while expectations are set now, holiday shopping factors often come down to last-minute decisions.

“We’ll see how it works out,” Stehmann said. “It could be the equivalent of a New Year’s resolution. I try to buy my gifts earlier every year and I still end up shopping the day before Christmas.”

However, consumers’ concerns around the holiday shopping season do not end at the purchase experience. If a shopper receives an incorrect or broken item in the mail, they will want to return the item as soon as possible. When asked about return options, 39% of shoppers said they prefer to return packages in a nearby store, while 38% look to return packages via a shipping provider. Another 20% of shoppers prefer to have a courier pick up a package from their location.

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