Survey: Shipping costs, on-time deliveries critical for holiday shoppers
Most consumers are planning to do a large portion of their holiday shopping online this holiday season, and with that comes concerns about shipping costs and late deliveries.
According to the 2024 Peak Season Consumer Survey of consumers in the United States, Canada and the U.K. from supply chain firm Project44, three-quarters of shoppers (74%) are planning to complete up to 75% of their shopping online, while only 5% plan to do all of their holiday purchases online. In the U.S., 26% of consumers said between a quarter to half of their holiday shopping will be done online.
With e-commerce playing a large role in holiday shopping, cost-conscious consumers are looking for ways to trim online spending. One-quarter (25%) of those surveyed said retailers increasing free shipping thresholds or eliminating free shipping entirely is a top concern of theirs, while another 18% said their top concern is shopping costs being higher than last year. More than half (51%) of consumers say they are less willing to pay extra for expedited shipping this year, for both cost and environmental reasons.
In addition to avoiding high shipping costs, late package deliveries are top of mind for many online shoppers. More than half (58%) of shoppers say they’re unlikely to shop at a retailer who missed their promised delivery date. Project44 noted that even when third-party shippers like UPS or FedEx are responsible for delays, shoppers don’t make distinctions between the shipper and the retailer, and hold the brand accountable.
Consumers in the U.S. are more forgiving of delayed shipments than those in the U.K. Three-quarters (76%) in the U.K. say they’re unlikely to shop at a retailer who missed their delivery date, compared to 54% of U.S. consumers. Almost half (47%) of U.S. shoppers will pay higher prices to guarantee on-time delivery, compared to 53% of U.K. shoppers.
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“To no surprise, cost sensitivity is another major factor this season,” said Project44 CEO Jett McCandless. “With inflation and economic uncertainty looming large, consumers are more cautious about their spending. They’re looking for deals and discounts, and most importantly, they’re unwilling to pay extra for shipping. This puts pressure on retailers to balance affordability with reliable delivery, and those who can’t deliver on promises risk losing future business.”
Other insights from the 2024 Peak Season Consumer Survey include the following:
- The U.S. takes a slight head start on starting holiday shopping, with 35% of consumers already starting or planning to before October, compared to 30% of U.K. consumers.
- U.S. and U.K. consumers agree (26% and 25% respectively) they’ll start holiday shopping during the traditional shopping season (mid-November to early December).
- U.S. shoppers are more likely to try to save money during holiday shopping season, with 68% planning to spend less than last year and 81% willing to compromise on gifts to get a good deal – compared to 59% of U.K. consumers trying to spend less and only 72% willing to sacrifice.
