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Free vs. Fast: Where Do You Stand With Delivery?

Free vs. Fast: Where Do You Stand With Delivery?

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Free and fast delivery is most ideal for most customers, but what can companies do when these shipping options aren't plausible? This infographic will help in selecting the right strategy.

Free and fast delivery is most ideal for most customers, but what can companies do when these shipping options aren't plausible? This infographic will help in selecting the right strategy.

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Free vs. Fast: Where Do You Stand With Delivery?

  1. 1. — FREE VS. FAST — Where Do You Stand With Delivery? of consumers are more likely to shop online when free shipping is offered. . of shoppers say extra costs, such as shipping, taxes and fees, are the top reason for abandoning their carts. of U.S. consumers expect free two- to three-day shipping. Almost half of omnichannel consumers will take their business elsewhere if delivery times are too long. Sources: stacker.com/stories/31662/rise-free-shipping-8-moments-transformed-e-commerce | mckinsey.com/industries/retail/our- insights/retails-need-for-speed-unlocking-value-in-omnichannel-delivery | whiplash.com/blog/free-shipping-or-fast-shipping | xaouen. cn/ecommerce-shipping-free-vs-fast-which-is-best | proshipinc.com/how-shipping-software-cultivates-a-positive-customer-experience proshipinc.com/what-do-customers-prefer-free-or-fast-shipping 79% 55% 90% 50% WHAT IS LAST MILE DELIVERY? Ideally, companies want to appease their customers’ desires for both free and fast delivery. However, offering both isn’t always financially viable, logistically achievable or even truly necessary. How then can a company know which strategy is the right choice? WHAT DOES THE DATA SHOW? FREE VS. FAST? Free Fast Cost (on retailers) Expenses can affect profit margin or inflate product prices. Expedited delivery services cost more — either passed onto the customer or absorbed. Delivery (timeframe) Average is 3-5 business days. Expect 1-3 days unless expedited to same- day shipping. Capability (how it impacts the retailer’s workforce) Increased orders during seasonal operations in turn increase demands on fulfillment departments. The resources needed to process orders quickly can be expensive and unreliable. Cut-off times Free shipping often allows sellers to work around cut-off times. Additional restrictions on delivery options and cut-off times from shipping carriers may occur. Environmental impact This can incentivize buying and returning, leading to negative environmental repercussions. More waste may be generated, escalating environmental impact further. There isn’t a simple, one-size-fits-all solution. Deciding which shipping strategy will work best comes down to your audience, fulfillment capabilities, individualized market research and more.

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