RSS feed Get our RSS feed

News by Topic

BizReport : Ecommerce archives : October 03, 2016

Consumers will spend more to qualify for free delivery

Most online shoppers in Europe would be willing to increase their cart value to qualify for free delivery or collection, according to a new study by JDA and Centiro.

by Helen Leggatt

Retailers are increasingly competing for sales by offering a wider variety of fulfillment options to deliver a higher level of service and provide consumers with more choice. Offering free delivery has long been a motivator among online shoppers and the JDA/Centiro research has found it works. Four out of five European online shoppers said they are willing to "exceed minimum order thresholds if it qualifies them for free delivery or collection".

Expectations among European shoppers for free delivery is high. It is highest in the UK where 72% expect standard (3-5 days) delivery to be free compared with 61% in Sweden, Germany 55% and France 55%.

However, despite many European online shoppers indicating they would be happy to exceed minimum order thresholds for free delivery, that behavior differs by delivery option. A quarter would do so for same-day delivery and 22% for next-day delivery, but this drops to 15% for standard (3-5 days) delivery. Furthermore, behavior varies by location, with 33% of UK online shoppers exceeding minimum order values to qualify for next-day delivery, compared to just 16% of French respondents.

Delivery, or click-to-collect, also remains a key part of the purchase process that has the potential to deter customers. Nearly two-thirds (63%) of European shoppers would switch retailers if they had a bad experience with delivery or a collection service.

According to Jason Shorrock, VP retail strategy EMEA at JDA, "last-mile issues continue to negatively impact the customer experience and customers are more willing to go elsewhere if their expectations aren't being met".

In fact, half of the European shoppers surveyed said they had experienced a problem with an online order over the past year, driving the popularity of click-to-collect. Half (49%) of those surveyed said they had used click-to-collect over the past year - a growth of 17% since 2014.

Tags: delivery solutions, ecommerce, fulfillment, online shopping, shipping

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.