Fast shipping has become a hallmark of online shopping, with many consumers expecting their orders to arrive in days if not hours. Retailers have jumped on this trend, recognizing that providing faster shipping options can increase customer satisfaction and boost conversion rates. A study by Coresight Research highlights a 10% increase in conversions when faster shipping is offered. However, their 2024 holiday poll revealed a surprising shift. Many shoppers this year plan to opt for standard delivery. While fast shipping options remain important, it isn’t the only factor shaping consumer behavior.
Modern online shoppers are diverse in their preferences, and the “fastest is best” mentality doesn’t resonate with everyone. While 48% of consumers want fast delivery, the remaining 52% prioritize other factors such as cost and environmental impact. Offering varied shipping options and keeping clear lines of communication open with consumers is the key to success in today’s e-commerce marketplace.
Why Do Some Customers Prioritize Slower Shipping?
A leading factor for not selecting the fastest shipping option available is affordability. Digital-native younger shoppers tend to value speed but older demographics often place a higher value on cost savings. Price-conscious consumers want to find a low-cost shipping option available next to higher-priced ones.
Desired shipping speed can also be impacted by what the customer is purchasing. Customers will happily pay a premium to receive a Mother’s Day gift that must arrive by Sunday but may prefer a less costly option for an order to restock office essentials.
Additionally, a growing segment of environmentally-conscious consumers favor slower, eco-friendly shipping options that align with their values. They want to feel good about every aspect of their purchase – shipping included! Earth-friendly consumers prefer slower shipping because it typically results in less fuel consumption, lowering emissions. For instance, cargo ships moving at slower speeds use less fuel and consolidating shipments onto a single truck minimizes the number of trips needed. These practices work together to lower the carbon footprint associated with the order.
Drawbacks Of Speedy Shipping for Sellers
The consumer is not the only one who may prefer a slower shipping option. Online retailers have several reasons to provide slower shipping options as well. New research reveals a short delivery window can lead to higher return rates and missed opportunities to build strong brand loyalty during the shipping time.
Faster shipping results in higher return rates, especially for new customers, according to research published by Science Direct last year. Their theory is that lightning-speed delivery doesn’t allow customers enough time to resolve the cognitive dissonance experienced after a purchase. This may be better known as “buyers remorse”. When the customer has less time to come to terms with their decision to select one product over other options, they may return their purchase to resolve any uncomfortable feelings. The short delivery time might even allow them the extra window of time to do so and exchange it for another one.
When you order a product online, how often do you return to your email seeking a shipping update for a product you’re anxiously awaiting? These emails are remarketing opportunities to your prime audience, those who have already purchased from your business. From a marketing perspective, faster shipping times leaves the seller less time to strengthen the consumer-brand relationship at a critical time when the customer is the most excited about the brand. These anticipation-building emails or updates are meaningful engagement opportunities with your customers. Notably, they usually have very high open rates. However, the only time they can be sent is while the customer is waiting for their package to arrive on their doorstep.
Offering Shipping Options is a Win-Win Strategy for Businesses and Consumers
Customers appreciate having choices when it comes to shipping. Smart retailers offer a fast shipping option alongside other standard shipping options to appeal to the budget-conscious, eco-friendly, and situational shopper. In doing so, businesses will benefit from a longer window of opportunity to communicate with their consumers and may experience a lower return rate from new customers. That’s a win-win situation for both the buyer and the seller!
A knowledgeable logistics provider, such as Sweetwater Logistics, can help you set up the right mix of shipping options to attract the maximum number of buyers for your product and provide accurate shipping estimates for each option. Contact us for personalized service to optimize your business.
