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01/23/2019

Survey: These consumers will pay for fast delivery

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Everyone appreciates fast delivery, but some demographic groups are more likely to pay for it.

According to the recent E-commerce Shipping Needs Survey from Hanover Research and delivery company LaserShip, Millennial and Gen Z consumers are up to three times as likely to pay for expedited shipping as older shoppers. Findings indicate 47% of Gen Z and 43% of Millennial respondents have ever paid for free shipping, compared to 39% of Gen X and 26% of Baby Boomer respondents. All age groups are most likely to pay for same-day shipping, with 40% of Gen Z, 32% of Millennials, 29% of Gen X and 12% of Baby Boomers saying they would be likely to do so.

In general, the study shows that fast shipping is a critical component of e-commerce success. Sixty-three percent of all consumers expect purchases shipped within three days, and one-third rank fast delivery as the most important consideration when shopping online. Eighty percent find fast shipping to be at least very important.

Even when consumers pay for shipping, they don’t want to pay a lot. Fifty percent of all respondents have abandoned a shopping cart due to high shipping costs, and 43% have stopped shopping at an online retailer due to shipping costs. The number one reason for dissatisfaction with a shipping experience is expensive cost (30%), followed by late delivery (27%) and slow delivery time or lack of expedited options (24%). Fifty percent of all consumers choose to pick up items in-store to avoid waiting for delivery.

The study also shows free returns to be an important feature for online shoppers. Seventy-five percent of all respondents consider free returns when choosing where to buy online, and 30% cite a poor return policy as a reason for disliking online shopping in general. Yet almost half (46.7%) of retailers charge for online returns, according to Hanover data.

Findings are based on a survey commissioned by LaserShip and conducted by Hanover Research in Q3 2018 of 1,014 U.S. online shoppers about shipping and delivery experiences. The survey includes responses from Generation Z (23%), Millennials (22%, Generation X (26%), and Baby Boomers and older (29%).