As consumers seek more delivery options when purchasing online, same-day delivery has become more of a baseline expectation than ever before. That doesn’t mean same-day offerings are one-size-fits-all, however. Different types of shoppers have different preferences and goals when choosing their delivery option. Understanding these differences is essential for retailers looking to tailor delivery strategies so they resonate with customers and drive repeat sales.
To that end, Roadie surveyed more than 1,000 consumers about their attitudes and preferences around last-mile delivery. We dug deeper, exploring survey responses through a generational lens to see how consumers of different ages feel about delivery, from willingness to pay for speed to the product types they prioritize most for faster delivery.
Which generation gets more things delivered?
It’s no secret that e-commerce has been taking on a larger portion of retail market share in recent years. According to our survey data, 61% of Gen Z report receiving more deliveries this year than last, compared to 56% of Millennials, and 50% of Gen X and Baby Boomers.
Given that the majority of Gen Z likely doesn’t remember a time when online shopping and one-click checkouts didn’t exist, it makes sense that they would lead the pack when it comes to online ordering. What’s perhaps more interesting here is that at least half of each demographic had more online orders delivered year over year. It wasn’t so long ago that older generations were perceived as resistant to online shopping, but this data shows that e-commerce is becoming less generational and more universal.
How do different generations feel about delivery costs?
When asked which aspects of delivery were most important to them, respondents across all generations ranked free delivery as number one. But Boomers ranked it highest, with 65% saying free delivery is most important, compared with Gen X (62%), Millennials (49%) and Gen Z (54%).
While Baby Boomers may want free delivery most, Gen Z is more willing to take extra steps to get it. Nearly a third of Gen Z (31%) said they have signed up for retailer emails to get free shipping, while far fewer Boomers (15%), Gen X (19%) and Millennials (21%) said the same.
Despite this desire for free deliveries, there are some areas where consumers are willing to pay for a delivery within 24 hours. For example:
- About a third of Millennials (30%) and Gen Z (33%) are willing to pay an additional fee to receive orders within 24 hours, compared with 15% of Gen X and only 5% of Boomers.
- Almost half (49%) of Gen Z will pay an additional fee for 24-hour delivery if there are items in the order that they are very excited about, while fewer Millennials (37%), Gen X (35%) and Boomers (24%) said the same.
- More than half of Boomers (51%) and just under half of Gen X (44%) will pay an additional fee to make sure perishables are delivered within 24 hours, compared with only 36% of Millennials and 30% of Gen Z.
When they do have to pay, a majority of all generations think that less than $20 is a fair fee for big and bulky items, high-value items and low-value items needed urgently. When Boomers have paid for 24-hour delivery, however, only just over half (54%) said they were completely or very satisfied that the faster delivery justified the additional cost, compared with much higher satisfaction rates from Gen X (67%), Millennials (72%) and Gen Z (69%).
What types of products will shoppers pay for?
While shoppers of different ages generally agree on how much is fair for a 24-hour delivery, they agree less about which specific product types are worth the fee:
- Over half (51%) of Baby Boomers are likely to pay extra for 24-hour delivery of medicine and prescriptions.
- Gen X is more often willing to pay for 24-hour delivery of tech/electronics (40%) and large appliances (36%).
- Just under one-third (31%) of both Gen X and Gen Z are willing to pay a fee for 24-hour delivery of luxury goods.
- Gen Z is more likely than other generations to pay for 24-hour delivery of apparel, shoes and accessories; beauty and personal care items; baby products; and toys, games and entertainment goods.
- Just under one-fifth (19%) of Millennials and Gen X are willing to pay extra for delivery of auto parts and tires within 24 hours.
These differences demonstrate how lifestyle and income dynamics may impact delivery preferences between groups, giving retailers a starting point to segment offers and tailor marketing tactics by product type and demographic.
Who is most likely to abandon your brand after a bad delivery?
There are many generic statistics floating around the retail sector about what percentage of customers will abandon a brand after a poor delivery experience. As it turns out, not all generations respond to bad deliveries in the same way.
Gen Z is most likely (69%) to avoid ordering from a retailer because of previous poor delivery experiences, followed by just over half of Millennials (53%) and just under half of Gen X (47%). Gen Z is also most likely to avoid ordering from a brand again if the retailer provides poor tracking or information around deliveries or offers no insurance or reimbursement options for lost or stolen goods.
Interestingly, less than a third (29%) of Baby Boomers will choose not to order from a retailer after a bad delivery experience, and only 3% of Boomers would expect any future orders to also have a poor delivery experience. This seems to suggest that the Baby Boomer generation is more willing to give retailers some grace. However, they were the most likely of all generations to say that not receiving an order, high delivery costs and the inability to get support for a delivery problem would deter them from shopping with a brand again.
Who believes good things come to those who wait?
Patience may be a virtue, but that virtue has a wide generational gap among consumers:
- When not in a hurry to get items, 70% of Baby Boomers say they are more willing to wait for slower delivery.
- A quarter of Millennials will wait for slower delivery if it means the delivery will cost less.
- Gen Z is most willing to wait for slower delivery if they can bundle items to reduce their carbon footprint.
While the waiting game looks different across generations, retailers can leverage these insights to fine-tune marketing and fulfillment strategies and win loyalty.
Who can help with tailored last-mile delivery?
Tailoring your delivery strategy based on demographics often comes down to the ability to offer choices at checkout and establish the infrastructure to make good on those offerings. A holistic delivery solution that combines traditional deliveries from UPS with the same-day delivery options enabled by Roadie gives retailers the flexibility to meet different customer expectations, from same-day delivery of prescriptions to Baby Boomers to more traditional two-day deliveries for cost-conscious Millennials.
To learn more about consumer preferences and attitudes around last-mile delivery, download our full research report.
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