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.