When consumers are selecting an online store at which to make a purchase, free shipping is the offering that is most commonly on their checklist.
Free shipping is an online shopping feature that 66% of consumers take into account when selecting an online store, according to the PYMNTS Intelligence report “The Online Features Driving Consumers to Shop with Brands, Retailers or Marketplaces.”
The second-most sought-after online shopping feature, an easy checkout process, was mentioned by half of consumers, the report found.
Three features — the ability to track deliveries, the availability of fast delivery, and easy and convenient return and refund procedures — were each mentioned by 46% of consumers.
Smaller shares of consumers look for an online store that is easy to navigate and the availability of their preferred payment method. These features were mentioned by 40% and 34%, respectively, of the consumers who were surveyed.
Discounts Draw Price-Sensitive Consumers
Adobe reported Jan. 7 that during the 2024 holiday shopping season, strong discounts drew in price-sensitive consumers and drove sales of higher-ticket items.
The company found that the discounts offered by retailers on televisions, appliances and sporting goods hit record highs.
“This season, Adobe’s data showed that for every 1% decrease in price, demand increased by 1.029% compared to the 2023 season,” the company said in a press release. “This drove an additional $2.25 billion in online spend — a figure factored into the overall $241.4 billion spent online — and shows the stronger response to discounts from price-sensitive shoppers.”
‘Shipping Is Crucial for Retailers’
In December, Adobe Commerce partnered with shipping software provider ShipStation to offer retailers global shipping options.
With this collaboration, Adobe Commerce retailers can compare shipping options, print shipping labels, automate workflows, manage orders and streamline order fulfillment.
“Shipping is crucial for retailers — it affects customer satisfaction, cost control and overall efficiency,” Michael Haswell, vice president of strategic partnerships at Auctane, the maker of ShipStation, said in a Dec. 10 press release.
Free Shipping Appeals to All Generations of Shoppers
Another PYMNTS Intelligence report, “The Credit Economy: The Role of Reward Programs in Consumer Credit Usage,” found that free shipping on purchases is also a highly sought-after credit card reward.
According to the report, one-third of Generation Z and Generation X shoppers said they would select free shopping if it were offered as a reward, as did 28% of baby boomers, seniors and millennials.
The report characterized free shipping as a reward that “offers appeal across all generations of shoppers.”
Online Marketplaces Offer Features Sought by Consumers
Online marketplaces excel in offering online shopping features valued by consumers, according to “The Online Features Driving Consumers to Shop with Brands, Retailers or Marketplaces.”
The report found that 48% of consumers said they favor online marketplaces for that reason, while 27% favor retailers and 25% favor brands.
Consumers who made all or most of their purchases in the previous 30 days at online marketplaces said they did so because of better prices (18%), free shipping (13%) and a wide selection of products (12%).
“Overall, … enhancing the shopping features that consumers value is vital for merchants aiming to become their preferred choice and foster increased customer engagement…,” the report said.
