Free shipping is a top incentive for shoppers, and shipping speed/price can make or break a sale.
On Free Shipping Day, consumers hit the internet to take advantage of the last big discount before holiday crunch time begins. This year’s Free Shipping Day was December 16, and more than 1,219 U.S. retailers offered free standard delivery on orders in time for Christmas with no order minimum.
Data provided by StellaService show that only four retailers (Apple, Nordstrom, HBC’Saks Fifth Avenue and Office Depot) are letting shoppers place orders as late as Dec. 22 or 23 this year for on-time delivery via standard shipping, compared to 12 retailers last year.
Free Shipping Day was established in 2008 by Luke and Maisie Knowles, and it has since expanded into a global event that happens each year. While the initiative is a money-saver for shoppers, it also helps boost the e-businesses who participate, helping them to make one final drive to help boost their revenue. According to The Balance, in the last few years, Free Shipping Day has accounted for more sales than Black Friday.
Here are just a few ways that Free Shipping Day influences retailers:
Free shipping ranks over same day shipping. The Walker Sands 2016 Future of Retail Study revealed that free shipping continues to be a top shopping incentive, with almost nine in 10 consumers reporting that free shipping would make them shop more online, while nearly half of consumers say same-day shipping would make them shop more online.
Guaranteed shipping holds a lot of weight for consumers. Astound Commerce’s 2016 Holiday Report found that logistics are already an important factor for consumers, and this number will only increase as Christmas draws nearer. 68 percent of consumers consider free shipping when selecting a retailer, and 62 percent consider guaranteed delivery, which is of huge importance to consumers over the next 10 days.
Shipping speed and price can make or break a sale. According to the Feedvisor Amazon User Study, 60 percent of Amazon Prime members and 41% of non-Prime members said that slower shipping deters them from making a purchase. And an overwhelming majority of respondents - over 85 percent - agreed that shipping charges deter them from purchasing an item.
According to Fortune, UPS anticipates delivering more than 700 million packages this holiday season, a 14 percent jump over last year, while FedEx foresees a 10 percent increase.
