Free Shipping Outpaces Discounts In Ecommerce Offers: Study

Retailers wondering what to stress in their emails have an answer in this chaotic period: consumers want faster shipping more than discounts, according to a study from Ware2Go, conducted by Propeller Insights.

Of the merchants polled, 65% report ecommerce cart conversions of up to 25% when one-to-day delivery is promised. 

Moreover, 71% say customers are willing to pay extra for one- to-two-day shipping. And 59% say two-day shipping guarantees have brought in more repeat customers.

Here are some effective offers:

  • Free shipping — 56%
  • One- to-two-day shipping — 52% 
  • Free gift with purchase — 29% 
  • In-cart discount — 26%

On the downside, merchants face these shipping challenges:

  • Insufficient inventory management — 33%
  • Incorrectly filled orders — 31%
  • Slow delivery speeds — 30% 
  • Lack of labor availability — 30%  

A third of the response define themselves as B2E — Business for Everyone — and must deliver service across multiple channels.  

 Of the firms surveyed, 50% use their own warehousing and fulfillment resources, and 32% use both insource and outsource.  

Note: Ware2Go is an on-demand fulfillment provider.  

Propeller Insights polled 250 merchants operating online and brick-and-mortar businesses.

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