In the e-commerce landscape, the way brands interact with customers is evolving. In many cases, a customer picking up the package on their doorstep is the only physical interaction they’ll have with a brand. It’s crucial this experience is a good one. But what exactly do online shoppers prefer with home deliveries? Sifted surveyed 500 US consumers to discover this. Here’s what we found, plus some strategies to enhance your customers' shipping experiences.
#1: Shipping Cost Is Online Shoppers' Top Consideration
Every consumer is unique, and will weigh factors differently when shopping online. But across the board, what factors are the most important? Here’s what we found:
- #1: Shipping Cost
- #2: Positive Reviews
- #3: Price of Item
We asked consumers how important certain factors are when considering an online purchase,
rating each on a scale of 1-4 (1 being “Not Very Important,” 4 being “Very Important). Based on the percentage who selected 2 or higher, these emerged as the top items.
Further evidence that consumers place the highest value on cheap shipping emerged when we
asked consumers to choose between price and speed.
When asked if they generally prefer a package be shipped to them faster, or for a lower cost:
- 32% preferred speed
- 68% preferred a lower cost
The “Amazon Effect” has grown the expectation for two-day shipping, and if ⅓ of your customers prefer speed, you should still offer Express services. However, offering a cheaper, slower option will still win over most.
#2: Multiple Shipping Options Can Increase Sales
Need more proof that consumers want shipping choices? 34% of our survey respondents indicated that they’re more likely to complete a purchase when given multiple shipping options. Another 40% said that they like having multiple options, but it doesn’t necessarily impact their decision to purchase.
Combined, these show that 74% - nearly three out of every four consumers - want multiple options. On the other side, only nine percent said multiple options makes them less likely to purchase. While most prefer a few shipping options, you shouldn’t overwhelm your customers with too many. Show them 2-3 different speeds and price points - not the name of each carrier’s individual service.
#3: Good Delivery Experiences Create Repeat Customers
The final, and perhaps most powerful insight is how frequently good delivery experiences lead
to repeat customers. 72% of respondents said that a good delivery or packaging experience has led them to purchase again from a brand - over seven out of every 10 online shoppers!
So what should e-commerce companies do with this information?
Focus on what parts of the shipping process you can control: packaging and communication. Packaging is important to your shoppers. For many, “unboxing” has become an experience. High quality and custom-branded packaging materials can set your brand apart.
Second, communication throughout the delivery process keeps your customers up-to-date. 85% in our survey said they value consistent tracking, so delivering updates to their inbox throughout the process can put them at ease.
Ultimately, most of the delivery process is out of a brand’s hands - and in their carriers’. This is where it’s crucial to track on-time performance, damaged claims, and any relevant returns data.
With this, you can have better conversations with your carrier on how you can work together to achieve faster delivery speeds and lower transportation costs - outcomes that your customers will enjoy.
Read our full survey report here.
Jeremy Lee is the VP of Research and Development at Sifted. He has over 20 years of experience in a combination of shipping, logistics, and data analytics roles. Jeremy works directly with shippers and Sifted’s internal teams to build next-generation solutions for shippers. Sifted provides Logistics Intelligence software and predictive analytics tools for parcel shippers of all sizes, equipping customers with the tools and data-driven insights to continuously calibrate, automate and monitor their shipping spend, carriers, and contracts.
