SUPPLY CHAIN

Survey: Free shipping more important to consumers than fast shipping

BY Staff Writer

Stamford, Conn. — Among Americans who purchased a product that required shipping this year, 80% consider shipping options, including free shipping, to be an important factor in their overall shopping experience, according to a recent survey commissioned by Pitney Bowes Inc. The survey found free shipping is by far more important to Americans surveyed over fast shipping (77% versus 19%).

“Shipping has become a considerable factor in consumers’ buying choices. In fact, there’s now a blurred line between the decision on a shipping method and the selection of a product when comes to the overall buying decision and customer experience and free shipping is just table stakes today,” said Jim Hendrickson, VP and general manager of shipping solutions, Pitney Bowes.

With access to goods from many sources, consumers are prepared to walk away from a purchase if presented with excessive shipping costs. And, they do.

Among those surveyed, half (49%) have at some time abandoned their shopping cart, whether online, in store, or over the phone, due to shipping costs. On average, the threshold for abandoning a purchase occurs when shipping fees are $20 or more. Men have a higher threshold for cost, with $24 for shipping being the average tipping point.

While nine-in-10 (89%) of Americans have made an online purchase at some point this year, only half (46%) those surveyed have returned a package through the mail.

“Simplifying the return process with enclosed return mailing envelopes, free shipping, prepared labels and generous return policies are all part of what the consumer now expects,” Hendrickson added.

The survey found that 81% of consumers who made a purchase requiring shipping in the last year have tracked a package, with 30% tracking once or twice, 21% tracking three-to-five times and 30% tracking six or more times.

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C.Richard says:
Feb-03-2014 12:26 pm

Free Shipping - An Advantage
Frankly speaking if I talk about each one of us then we used to prefer almost everything at free of cost, then whether its a pen or a weeding dress and specially when it comes to shipping I always used to think that how less I should invest so that the product would be shipped to my house and if its free then how great it is. Reference-http://www.packagingsuppliesbymail.com/

C.Richard says:
Feb-03-2014 12:26 pm

Frankly speaking if I talk about each one of us then we used to prefer almost everything at free of cost, then whether its a pen or a weeding dress and specially when it comes to shipping I always used to think that how less I should invest so that the product would be shipped to my house and if its free then how great it is. Reference-http://www.packagingsuppliesbymail.com/

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MARKETING/SOCIAL MEDIA

Consumers shift Cyber Monday shopping patterns

BY Dan Berthiaume

Westlake Village, Calif. – Consumers show unique online shopping patterns on Cyber Monday. According to figures released by integrated online marketing company ValueClick, while most online shopping activity occurs between 1 p.m. to 3 p.m. local time on a typical weekday, the heaviest volume shifts to 6:30 p.m. to 10 p.m. local time on Cyber Monday, peaking at 8 p.m.

In addition, online transaction volume is 5.5-times higher on Cyber Monday than on a typical weekday, and some retailers generate more than 10% of their fourth quarter revenue on that day. Other Cyber Monday findings include:

  • A small peak in mobile phone transactions occurs at lunchtime.
  • 43% of tablet transactions occur between 6:30 and 10 p.m.
  • Offline sales during Cyber Monday 2012 were 38% higher than the average holiday shopping day.
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OPERATIONS

Survey: Convenience tops smartphone feature

BY Dan Berthiaume

Kirkland, Wash. — Consumers actually favor ease-of-use more than the latest device specifications, with many intimidated by jargon and technical data, when choosing a new smartphone.

A new survey from WDS, a Xerox company, also shows that a physical retail store remains the most popular destination for purchasing a new smartphone. Sixty-seven percent of consumers treat it as their primary destination while only 19% of buyers older 60 would buy their device online.

Other notable findings include:

  • Buyers between 25-34 years old and those older than 60 are the most likely groups to research and evaluate smartphones before visiting a store.
  • More than a third of shoppers younger than 24 will walk into a store knowing the exact make and model of device they want to purchase.
  • The importance of device brand declines with age.
  • Sixty-one percent of consumers stated that having the latest product specifications was of little importance when choosing their smartphone.
  • Network coverage and service reliability is considered more important than network speed by all age groups.
  • Consumers older than 60 are the most price sensitive when it comes to choosing a price plan. They are also the least interested in network speeds.

“We’ve interviewed hundreds of consumers to help mobile operators better understand how their customers navigate their way through the complexity of choosing a smartphone,” said Tim Deluca-Smith, VP of marketing at WDS. “The study highlights some important buying behaviors that will help mobile operators deliver a better retail experience.”

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