The world of retail moves fast, and keeping a competitive advantage often comes down to how efficiently you can get products into customers’ hands. Major online retailers like Amazon, Walmart and Target have trained consumers to expect fast, free shipping. Solutions like crowdsourced delivery allow retailers large and small to match that speed of service, but adding a vendor partner and changing service offerings can be a challenge.
Having some assurance that your business decision will have a demonstrable return on investment makes overcoming that challenge a lot easier — and crowdsourced delivery has some impressive, confidence-boosting statistics going for it. Here are five stats, plus some context, that show just how much of a positive impact crowdsourced delivery can have on your business … and the business risks of not adding an ultra-fast delivery option.
1. 56% of shoppers’ abandoned carts relate to delivery concerns
Online shoppers do a lot of research before they buy, so when they add an item to their shopping cart, it’s clear you’re already checking a lot of boxes: availability, affordability and price, to name a few. But X Delivery and the Retail Management Institute (RMI) found that when shoppers don’t complete their purchases, the reasons are overwhelmingly due to unmet shipping and delivery needs. Three main concerns fall under that umbrella:
- The shopper discovered shipping wasn’t free, and they weren’t willing to pay the standard rate.
- The delivery window wasn’t fast enough to meet their needs, and they weren’t willing to pay for expedited shipping.
- Convenient, same-day pickup or delivery options weren’t offered at checkout.
Without providing options that relieve these customer pain points, expect cart abandonment to continue.
2. 52% of merchants say that one- to two-day delivery drives more cart conversions
More than ever, consumers are showing retailers that the old adage “time is money” is alive and well. A recent Ware2Go merchant survey found that offering one- or two-day delivery speed translates into 25% more cart conversions, and that faster shipping improved sales even more than offering discounts. Of the merchants surveyed, 56% said free shipping was the most impactful cart conversion tactic (because money is also money), followed by one- or two-day shipping, noted by 52% of merchants. Free gifts with purchase and in-cart discounts followed by a wide margin at 29 and 26%, respectively.
3. A third of retailers say they could increase revenues by instituting same-day delivery
Take things a step further — or, perhaps, faster — and retailers see an opportunity to increase revenue by 20% by adding same-day delivery services. More and more, same-day delivery is becoming a reality for retailers and consumer brands of all sizes.
4. 99% of retailers will offer same-day delivery by 2025 because customers want it
A step beyond one- or two-day delivery, same-day delivery is becoming increasingly in demand among consumers. When the COVID-19 pandemic kept customers from entering stores, doorstep delivery became an easy option, and shoppers have gotten used to it. Of the 200 retailers surveyed, a quarter already offer same-day delivery, and the rest plan to add the service in the next two years. Collectively, retailers expect that 40 to 60% of shoppers will be willing to pay for same-day delivery.
5. 75% of consumers have paid extra for expedited shipping, with that number rising to 90% for higher-income earners
Speaking of paying for delivery, while X Delivery and RMI acknowledged cart abandonment due to too-high shipping fees, they also found a sweet spot where shoppers are willing to pay for faster delivery, helping to offset the cost of offering fast shipping services. Researchers say the thresholds are based on consumers’ perceptions of a “proportionately reasonable” cost of shipping. To upgrade from five- to eight-day delivery to two- to three-day delivery, their research found that consumers were willing to spend no more than $7.37 for carts valued between $50 and $99, and no more than $9 for carts worth $100 to $199.
The numbers show delivery speed success
Individually, these statistics speak for themselves, but collectively they tell a compelling story. By declining to offer fast and affordable delivery, retailers are costing themselves a considerable amount of sales. Not only does the addition of ultrafast shipping convert more sales, but consumers are willing to pay for the services, helping to offset the cost of implementation.
With the right logistics partner, adding crowdsourced delivery can be a seamless process, and with the potential ROI, you’ll wonder why you didn’t add it sooner. The Roadie team is on hand and ready to answer all your questions to get your business set up with fast, affordable delivery. Reach out today, before one more customer looks elsewhere for a better shipping option.